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November 2018
Preparatory Study on Ecodesign and Energy Labelling of Batteries under
FWC ENERC32015-619-Lot 1
TASK 2
Markets ndash For Ecodesign and Energy Labelling
VITO Fraunhofer Viegand Maagoslashe
Study team leader Paul Van Tichelen
VITOEnergyville ndash paulvantichelenvitobe
Key technical expert Grietus Mulder
VITOEnergyville ndash grietusmuldervitobe
Authors of Task 2
Christoph Neef - Fraunhofer ISI
Axel Thielmann - Fraunhofer ISI
Quality Review Jan Viegand - Viegand Maagoslashe AS
Project website httpsecodesignbatterieseu
EUROPEAN COMMISSION
Directorate-General for Internal Market Industry Entrepreneurship and SMEs
Directorate Directorate C ndash Industrial Transformation and Advanced Value Chains
Unit Directorate C1
Contact Cesar Santos
E-mail cesarsantoseceuropaeu
European Commission B-1049 Brussels
Preparatory study on Ecodesign and Energy Labelling of batteries
3
1 2 3
4 5
6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21
22
LEGAL NOTICE 23
This document has been prepared for the European Commission however it reflects the views only of the authors and the 24
Commission cannot be held responsible for any use which may be made of the information contained therein 25
This report has been prepared by the authors to the best of their ability and knowledge The authors do not assume liability for 26
any damage material or immaterial that may arise from the use of the report or the information contained therein 27
copy European Union 28
Reproduction is authorised provided the source is acknowledged 29
More information on the European Union is available on httpeuropaeu 30
Luxembourg Publications Office of the European Union 2018 31
ISBN number [TO BE INCLUDED] 32
doinumber [TO BE INCLUDED] 33
copy European Union 2018 34
Reproduction is authorised provided the source is acknowledged 35
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37
Europe Direct is a service to help you find answers
to your questions about the European Union
Freephone number ()
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may charge you)
Preparatory study on Ecodesign and Energy Labelling of batteries
4
Contents 1
2
2 TASK 2 MARKETS 5 3
21 Generic economic data 5 4
211 Approach to subtask 2 5 5
212 Results of the PRODCOM analysis 6 6
22 Market and stock data 10 7
221 General objective of subtask 22 and discussion of useful data sources 10 8
222 Market stock and forecast for xEVs in Europe 11 9
223 Market stock and forecast for ESS in Europe 19 10
224 Summary of the market sales forecast and estimation of the future and 11
past stock 29 12
23 Market trends 31 13
231 General objective of subtask 23 and approach 31 14
232 Market drivers and CO2 legislation [28] 31 15
233 The developing battery market 33 16
234 Battery markets by application 34 17
235 Market channels and production structure 38 18
24 Consumer expenditure base data 46 19
241 General objective of subtask 24 and approach 46 20
242 Development of LIB cell costs 46 21
243 Development of storage cost for xEVs and ESS 48 22
244 Installation repair and maintenance costs 48 23
245 LIB life-cycle disposal and recycling considerations 49 24
25 Recommendations 49 25
251 General objective of subtask 25 50 26
252 Refined product scope from the economical commercial perspective 50 27
253 Barriers and opportunities for Ecodesign from the economical 28
commercial perspective 50 29
254 General conclusion50 30
26 Annex 51 31
27 References 53 32
33
34
35
36
Preparatory study on Ecodesign and Energy Labelling of batteries
5
2 Task 2 Markets 1
The objective of Task 2 is to present an economic and market analysis of batteries according 2
to the definition presented in 121 The aims are 3
bull to place batteries (according to the definition provided in 121) within the context of EU 4
industry and trade policy (subtask 21) 5
bull to provide market size and cost inputs for the EU-wide environmental impact assessment 6
of the product group (subtask 22) 7
bull to provide insight into the latest market trends to help assess the impact of potential 8
Ecodesign measures with regard to market structures and ongoing trends in product 9
design (subtask 23 also relevant for the impact analyses in Task 3) and finally 10
bull to provide a practical data set of prices and rates to be used for Life Cycle Cost (LCC) 11
calculations (subtask 24) 12
21 Generic economic data 13
In the MEErP generic economic data refers to data that is available in official EU statistics 14
(eg PRODCOM) and the aim is to identify and report the lsquoEU apparent consumptionrsquo which 15
is defined as lsquoEU production + EU import ndash EU exportrsquo Also the average value of each product 16
is verified The information required for this subtask should be derived from official EU 17
statistics so as to be coherent with official data used in EU industry and trade policy 18
211 Approach to subtask 2 19
PRODCOM data is publicly available and is a direct source of market information PRODCOM 20
data does not give any direct information about the total number of installed batteries in use 21
in the EU28 member countries The data might also not account for batteries imported to or 22
exported from the EU as sub-unit of other products (eg batteries in cell phones) 23
2111 Secondary batteries related PRODCOM categories 24
Several categories on batteries exist within the NACE2 classification (see Table 1) however 25
there is no category for LIB cells modules or packs LIB based secondary batteries are 26
included in the composite category 2702300 along with all other not Pb-based secondary 27
battery technologies 28
27201100 Primary cells and primary batteries
27201200 Parts of primary cells and primary batteries (excluding battery
carbons for rechargeable batteries)
27202100 Lead-acid accumulators for starting piston engines
27202200 Lead-acid accumulators excluding for starting piston engines
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium
polymer nickel-iron and other electric accumulators
27202400 Parts of electric accumulators including separators
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Study team leader Paul Van Tichelen
VITOEnergyville ndash paulvantichelenvitobe
Key technical expert Grietus Mulder
VITOEnergyville ndash grietusmuldervitobe
Authors of Task 2
Christoph Neef - Fraunhofer ISI
Axel Thielmann - Fraunhofer ISI
Quality Review Jan Viegand - Viegand Maagoslashe AS
Project website httpsecodesignbatterieseu
EUROPEAN COMMISSION
Directorate-General for Internal Market Industry Entrepreneurship and SMEs
Directorate Directorate C ndash Industrial Transformation and Advanced Value Chains
Unit Directorate C1
Contact Cesar Santos
E-mail cesarsantoseceuropaeu
European Commission B-1049 Brussels
Preparatory study on Ecodesign and Energy Labelling of batteries
3
1 2 3
4 5
6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21
22
LEGAL NOTICE 23
This document has been prepared for the European Commission however it reflects the views only of the authors and the 24
Commission cannot be held responsible for any use which may be made of the information contained therein 25
This report has been prepared by the authors to the best of their ability and knowledge The authors do not assume liability for 26
any damage material or immaterial that may arise from the use of the report or the information contained therein 27
copy European Union 28
Reproduction is authorised provided the source is acknowledged 29
More information on the European Union is available on httpeuropaeu 30
Luxembourg Publications Office of the European Union 2018 31
ISBN number [TO BE INCLUDED] 32
doinumber [TO BE INCLUDED] 33
copy European Union 2018 34
Reproduction is authorised provided the source is acknowledged 35
36
37
Europe Direct is a service to help you find answers
to your questions about the European Union
Freephone number ()
00 800 6 7 8 9 10 11
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may charge you)
Preparatory study on Ecodesign and Energy Labelling of batteries
4
Contents 1
2
2 TASK 2 MARKETS 5 3
21 Generic economic data 5 4
211 Approach to subtask 2 5 5
212 Results of the PRODCOM analysis 6 6
22 Market and stock data 10 7
221 General objective of subtask 22 and discussion of useful data sources 10 8
222 Market stock and forecast for xEVs in Europe 11 9
223 Market stock and forecast for ESS in Europe 19 10
224 Summary of the market sales forecast and estimation of the future and 11
past stock 29 12
23 Market trends 31 13
231 General objective of subtask 23 and approach 31 14
232 Market drivers and CO2 legislation [28] 31 15
233 The developing battery market 33 16
234 Battery markets by application 34 17
235 Market channels and production structure 38 18
24 Consumer expenditure base data 46 19
241 General objective of subtask 24 and approach 46 20
242 Development of LIB cell costs 46 21
243 Development of storage cost for xEVs and ESS 48 22
244 Installation repair and maintenance costs 48 23
245 LIB life-cycle disposal and recycling considerations 49 24
25 Recommendations 49 25
251 General objective of subtask 25 50 26
252 Refined product scope from the economical commercial perspective 50 27
253 Barriers and opportunities for Ecodesign from the economical 28
commercial perspective 50 29
254 General conclusion50 30
26 Annex 51 31
27 References 53 32
33
34
35
36
Preparatory study on Ecodesign and Energy Labelling of batteries
5
2 Task 2 Markets 1
The objective of Task 2 is to present an economic and market analysis of batteries according 2
to the definition presented in 121 The aims are 3
bull to place batteries (according to the definition provided in 121) within the context of EU 4
industry and trade policy (subtask 21) 5
bull to provide market size and cost inputs for the EU-wide environmental impact assessment 6
of the product group (subtask 22) 7
bull to provide insight into the latest market trends to help assess the impact of potential 8
Ecodesign measures with regard to market structures and ongoing trends in product 9
design (subtask 23 also relevant for the impact analyses in Task 3) and finally 10
bull to provide a practical data set of prices and rates to be used for Life Cycle Cost (LCC) 11
calculations (subtask 24) 12
21 Generic economic data 13
In the MEErP generic economic data refers to data that is available in official EU statistics 14
(eg PRODCOM) and the aim is to identify and report the lsquoEU apparent consumptionrsquo which 15
is defined as lsquoEU production + EU import ndash EU exportrsquo Also the average value of each product 16
is verified The information required for this subtask should be derived from official EU 17
statistics so as to be coherent with official data used in EU industry and trade policy 18
211 Approach to subtask 2 19
PRODCOM data is publicly available and is a direct source of market information PRODCOM 20
data does not give any direct information about the total number of installed batteries in use 21
in the EU28 member countries The data might also not account for batteries imported to or 22
exported from the EU as sub-unit of other products (eg batteries in cell phones) 23
2111 Secondary batteries related PRODCOM categories 24
Several categories on batteries exist within the NACE2 classification (see Table 1) however 25
there is no category for LIB cells modules or packs LIB based secondary batteries are 26
included in the composite category 2702300 along with all other not Pb-based secondary 27
battery technologies 28
27201100 Primary cells and primary batteries
27201200 Parts of primary cells and primary batteries (excluding battery
carbons for rechargeable batteries)
27202100 Lead-acid accumulators for starting piston engines
27202200 Lead-acid accumulators excluding for starting piston engines
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium
polymer nickel-iron and other electric accumulators
27202400 Parts of electric accumulators including separators
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
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22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
3
1 2 3
4 5
6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21
22
LEGAL NOTICE 23
This document has been prepared for the European Commission however it reflects the views only of the authors and the 24
Commission cannot be held responsible for any use which may be made of the information contained therein 25
This report has been prepared by the authors to the best of their ability and knowledge The authors do not assume liability for 26
any damage material or immaterial that may arise from the use of the report or the information contained therein 27
copy European Union 28
Reproduction is authorised provided the source is acknowledged 29
More information on the European Union is available on httpeuropaeu 30
Luxembourg Publications Office of the European Union 2018 31
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doinumber [TO BE INCLUDED] 33
copy European Union 2018 34
Reproduction is authorised provided the source is acknowledged 35
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Freephone number ()
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Preparatory study on Ecodesign and Energy Labelling of batteries
4
Contents 1
2
2 TASK 2 MARKETS 5 3
21 Generic economic data 5 4
211 Approach to subtask 2 5 5
212 Results of the PRODCOM analysis 6 6
22 Market and stock data 10 7
221 General objective of subtask 22 and discussion of useful data sources 10 8
222 Market stock and forecast for xEVs in Europe 11 9
223 Market stock and forecast for ESS in Europe 19 10
224 Summary of the market sales forecast and estimation of the future and 11
past stock 29 12
23 Market trends 31 13
231 General objective of subtask 23 and approach 31 14
232 Market drivers and CO2 legislation [28] 31 15
233 The developing battery market 33 16
234 Battery markets by application 34 17
235 Market channels and production structure 38 18
24 Consumer expenditure base data 46 19
241 General objective of subtask 24 and approach 46 20
242 Development of LIB cell costs 46 21
243 Development of storage cost for xEVs and ESS 48 22
244 Installation repair and maintenance costs 48 23
245 LIB life-cycle disposal and recycling considerations 49 24
25 Recommendations 49 25
251 General objective of subtask 25 50 26
252 Refined product scope from the economical commercial perspective 50 27
253 Barriers and opportunities for Ecodesign from the economical 28
commercial perspective 50 29
254 General conclusion50 30
26 Annex 51 31
27 References 53 32
33
34
35
36
Preparatory study on Ecodesign and Energy Labelling of batteries
5
2 Task 2 Markets 1
The objective of Task 2 is to present an economic and market analysis of batteries according 2
to the definition presented in 121 The aims are 3
bull to place batteries (according to the definition provided in 121) within the context of EU 4
industry and trade policy (subtask 21) 5
bull to provide market size and cost inputs for the EU-wide environmental impact assessment 6
of the product group (subtask 22) 7
bull to provide insight into the latest market trends to help assess the impact of potential 8
Ecodesign measures with regard to market structures and ongoing trends in product 9
design (subtask 23 also relevant for the impact analyses in Task 3) and finally 10
bull to provide a practical data set of prices and rates to be used for Life Cycle Cost (LCC) 11
calculations (subtask 24) 12
21 Generic economic data 13
In the MEErP generic economic data refers to data that is available in official EU statistics 14
(eg PRODCOM) and the aim is to identify and report the lsquoEU apparent consumptionrsquo which 15
is defined as lsquoEU production + EU import ndash EU exportrsquo Also the average value of each product 16
is verified The information required for this subtask should be derived from official EU 17
statistics so as to be coherent with official data used in EU industry and trade policy 18
211 Approach to subtask 2 19
PRODCOM data is publicly available and is a direct source of market information PRODCOM 20
data does not give any direct information about the total number of installed batteries in use 21
in the EU28 member countries The data might also not account for batteries imported to or 22
exported from the EU as sub-unit of other products (eg batteries in cell phones) 23
2111 Secondary batteries related PRODCOM categories 24
Several categories on batteries exist within the NACE2 classification (see Table 1) however 25
there is no category for LIB cells modules or packs LIB based secondary batteries are 26
included in the composite category 2702300 along with all other not Pb-based secondary 27
battery technologies 28
27201100 Primary cells and primary batteries
27201200 Parts of primary cells and primary batteries (excluding battery
carbons for rechargeable batteries)
27202100 Lead-acid accumulators for starting piston engines
27202200 Lead-acid accumulators excluding for starting piston engines
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium
polymer nickel-iron and other electric accumulators
27202400 Parts of electric accumulators including separators
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
4
Contents 1
2
2 TASK 2 MARKETS 5 3
21 Generic economic data 5 4
211 Approach to subtask 2 5 5
212 Results of the PRODCOM analysis 6 6
22 Market and stock data 10 7
221 General objective of subtask 22 and discussion of useful data sources 10 8
222 Market stock and forecast for xEVs in Europe 11 9
223 Market stock and forecast for ESS in Europe 19 10
224 Summary of the market sales forecast and estimation of the future and 11
past stock 29 12
23 Market trends 31 13
231 General objective of subtask 23 and approach 31 14
232 Market drivers and CO2 legislation [28] 31 15
233 The developing battery market 33 16
234 Battery markets by application 34 17
235 Market channels and production structure 38 18
24 Consumer expenditure base data 46 19
241 General objective of subtask 24 and approach 46 20
242 Development of LIB cell costs 46 21
243 Development of storage cost for xEVs and ESS 48 22
244 Installation repair and maintenance costs 48 23
245 LIB life-cycle disposal and recycling considerations 49 24
25 Recommendations 49 25
251 General objective of subtask 25 50 26
252 Refined product scope from the economical commercial perspective 50 27
253 Barriers and opportunities for Ecodesign from the economical 28
commercial perspective 50 29
254 General conclusion50 30
26 Annex 51 31
27 References 53 32
33
34
35
36
Preparatory study on Ecodesign and Energy Labelling of batteries
5
2 Task 2 Markets 1
The objective of Task 2 is to present an economic and market analysis of batteries according 2
to the definition presented in 121 The aims are 3
bull to place batteries (according to the definition provided in 121) within the context of EU 4
industry and trade policy (subtask 21) 5
bull to provide market size and cost inputs for the EU-wide environmental impact assessment 6
of the product group (subtask 22) 7
bull to provide insight into the latest market trends to help assess the impact of potential 8
Ecodesign measures with regard to market structures and ongoing trends in product 9
design (subtask 23 also relevant for the impact analyses in Task 3) and finally 10
bull to provide a practical data set of prices and rates to be used for Life Cycle Cost (LCC) 11
calculations (subtask 24) 12
21 Generic economic data 13
In the MEErP generic economic data refers to data that is available in official EU statistics 14
(eg PRODCOM) and the aim is to identify and report the lsquoEU apparent consumptionrsquo which 15
is defined as lsquoEU production + EU import ndash EU exportrsquo Also the average value of each product 16
is verified The information required for this subtask should be derived from official EU 17
statistics so as to be coherent with official data used in EU industry and trade policy 18
211 Approach to subtask 2 19
PRODCOM data is publicly available and is a direct source of market information PRODCOM 20
data does not give any direct information about the total number of installed batteries in use 21
in the EU28 member countries The data might also not account for batteries imported to or 22
exported from the EU as sub-unit of other products (eg batteries in cell phones) 23
2111 Secondary batteries related PRODCOM categories 24
Several categories on batteries exist within the NACE2 classification (see Table 1) however 25
there is no category for LIB cells modules or packs LIB based secondary batteries are 26
included in the composite category 2702300 along with all other not Pb-based secondary 27
battery technologies 28
27201100 Primary cells and primary batteries
27201200 Parts of primary cells and primary batteries (excluding battery
carbons for rechargeable batteries)
27202100 Lead-acid accumulators for starting piston engines
27202200 Lead-acid accumulators excluding for starting piston engines
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium
polymer nickel-iron and other electric accumulators
27202400 Parts of electric accumulators including separators
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
5
2 Task 2 Markets 1
The objective of Task 2 is to present an economic and market analysis of batteries according 2
to the definition presented in 121 The aims are 3
bull to place batteries (according to the definition provided in 121) within the context of EU 4
industry and trade policy (subtask 21) 5
bull to provide market size and cost inputs for the EU-wide environmental impact assessment 6
of the product group (subtask 22) 7
bull to provide insight into the latest market trends to help assess the impact of potential 8
Ecodesign measures with regard to market structures and ongoing trends in product 9
design (subtask 23 also relevant for the impact analyses in Task 3) and finally 10
bull to provide a practical data set of prices and rates to be used for Life Cycle Cost (LCC) 11
calculations (subtask 24) 12
21 Generic economic data 13
In the MEErP generic economic data refers to data that is available in official EU statistics 14
(eg PRODCOM) and the aim is to identify and report the lsquoEU apparent consumptionrsquo which 15
is defined as lsquoEU production + EU import ndash EU exportrsquo Also the average value of each product 16
is verified The information required for this subtask should be derived from official EU 17
statistics so as to be coherent with official data used in EU industry and trade policy 18
211 Approach to subtask 2 19
PRODCOM data is publicly available and is a direct source of market information PRODCOM 20
data does not give any direct information about the total number of installed batteries in use 21
in the EU28 member countries The data might also not account for batteries imported to or 22
exported from the EU as sub-unit of other products (eg batteries in cell phones) 23
2111 Secondary batteries related PRODCOM categories 24
Several categories on batteries exist within the NACE2 classification (see Table 1) however 25
there is no category for LIB cells modules or packs LIB based secondary batteries are 26
included in the composite category 2702300 along with all other not Pb-based secondary 27
battery technologies 28
27201100 Primary cells and primary batteries
27201200 Parts of primary cells and primary batteries (excluding battery
carbons for rechargeable batteries)
27202100 Lead-acid accumulators for starting piston engines
27202200 Lead-acid accumulators excluding for starting piston engines
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium
polymer nickel-iron and other electric accumulators
27202400 Parts of electric accumulators including separators
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
6
Table 1 PRODCOM categories related to batteries [1] 1
2112 SystemBMS related PRODCOM categories 2
Within the NACE2 classification there are no explicit categories for LIB system components 3
like the battery management system however there are categories including components 4
which are likely to be applied in the power electronics or BMS of battery packs and systems 5
A selection is listed in Table 2 Automatic circuit breakers as a part of technology crucial for 6
battery management systems are aggregated under PRODCOM categories 27122250 and 7
27122230 8
27122370 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 125 A (excluding fuses automatic circuit
breakers)
27122350 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and for a current gt 16 A but le 125 A (excluding fuses automatic
circuit breakers)
27122330 Electrical apparatus for protecting electrical circuits for a voltage le 1
kV and a current le 16 A (excluding fuses automatic circuit breakers)
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current
gt 63 A
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current
le 63 A
27904155 Inverters having a power handling capacity gt 75 kVA
27904153 Inverters having a power handling capacity le 75 kVA
Table 2 PRODCOM categories related to batteries [1] 9
10
212 Results of the PRODCOM analysis 11
The PRODCOM categories 27202300 Nickel-cadmium nickel metal hydride lithium-ion 12
lithium polymer nickel-iron and other electric accumulators 27122250 Automatic circuit 13
breakers for a voltage le 1 kV and for a current gt 63 A and 27122230 Automatic circuit breakers 14
for a voltage le 1 kV and for a current le 63 A are analyzed in more detail for the years 1995 15
2000 2005 2010 2015 and 2017 based on Eurostat PRODCOM data obtained online in 16
September 2018 [2] 17
2121 Electric accumulators including LIBs 18
Figure 1 shows the development of production import and export volumes in Euro for 19
PRODCOM category 27202300 in the time from 1995 to 2017 The data shows an increase 20
of market volume in all three categories Since several battery technologies are aggregated in 21
this PRODCOM category values specific for LIB cannot obtained from this data Due to the 22
development of the different battery technologies it is likely that the market values in the 1990s 23
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
7
and early 2000s can mainly be attributed to NiMH NiCd and other technologies The growth 1
experienced since 2010 in all three market categories is likely to be a result of the development 2
in the LIB market which can be considered to be the dominant submarket under the battery 3
technologies aggregated under 27202300 today (see and compare section 233 with a global 4
analysis of different battery technologies) 5
6
Figure 1 EU production import and export summarized in PRODCOM category 27202300 7
Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and other 8
electric accumulators [2] 9
Note that no production volumes in terms of units or kWh are available from Eurostat 10
The value of batteries integrated into applications or sold as end products in Europe can be 11
assessed by considering the EU consumption value (EU sales and trade) which results from 12
the sum of production and import minus export values (see Figure 2) After a plateau like 13
market behavior between 2000 and 2010 a steep increase of the EU consumption value can 14
be observed The 2017 value adds up to about 4 billion Euro Assuming that the majority share 15
of this value can be attributed to LIB with a market price of 300 to 500 eurokWh (Mix of higher 16
priced consumer cells and lower priced automotive cells) the value corresponds to a capacity 17
of 8 to 13 GWh In consideration of its estimated character this number is in accordance with 18
the data presented in section 224 (based on a bottom up estimation of the capacity demand 19
by passenger xEV and home storage ESS markets 3C markets are not considered) 20
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
8
1
2
Figure 2 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 3
27202300 Nickel-cadmium nickel metal hydride lithium-ion lithium polymer nickel-iron and 4
other electric accumulators [2] 5
Hence it can be assumed that the data presented in the PRODCOM database meets the right 6
magnitude Due to the aggregation of battery technologies the consumption value of LIB alone 7
can however not be assessed by this data Furthermore the large price spread for LIB and 8
the dynamic development of prices does not allow to reliably conclude on the demand of 9
battery capacity (GWh) An assessment of market development and installed LIB stock in 10
Europe is given in section 22 and 23 based on other data sources 11
2122 Circuit breakers as an example for BMS electronics 12
LIB cells as gathered in category 27202300 are only one of the subunits of battery systems 13
Housing protection cooling electrical and electronic components are supposedly measured 14
in different PRODCOM categories 15
Figure 3 Figure 4 Figure 5 and Figure 6 show production import export and EU sales and 16
trade data for automatic circuit breakers as potential component of BMS EU consumption 17
values do not show a clear upward trend comparable to the values for battery technologies 18
Although an increase of export and import values can be observed no clear correlation with 19
the production of battery systems for xEV or stationary storage in Europe can be observed 20
We conclude that the analysis of individual storage system related PRODCOM categories 21
does not allow to assess the market development for complete battery systems 22
23
24
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
9
1
Figure 3 EU production import and export summarized in PRODCOM category 27122230 2
Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 3
4
Figure 4 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122230 Automatic circuit breakers for a voltage le 1 kV and for a current le 63 A [2] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
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22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
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31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
10
1
Figure 5 EU production import and export summarized in PRODCOM category 27122250 2
Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 3
4
Figure 6 EU sales and trade (PROD+IMP-EXP) summarized in PRODCOM category 5
27122250 Automatic circuit breakers for a voltage le 1 kV and for a current gt 63 A [2] 6
7
22 Market and stock data 8
221 General objective of subtask 22 and discussion of useful data 9
sources 10
The objective is to compile market and stock data in physical units for the EU for each of the 11
product categories defined in Task 11 and for the stock (1990-2015) combined with a forecast 12
2020-2050 Therefore the following parameters need to be identified 13
Preparatory study on Ecodesign and Energy Labelling of batteries
11
bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
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bull Market and installed stock assessment in units of number of systems (battery systems 1
for xEV battery systems for ESS) and corresponding battery capacity (MWh or GWh) 2
bull Replacement cycles and life time data This data is assumed to be strongly application 3
depending At present there is no comprehensive data available 4
2211 Useful data sources 5
Several market studies describing the present and future market situation for battery-based 6
applications exist Most of these studies have a global scope or focus on Asian countries due 7
to the structure of the battery market Comprehensive studies providing market data for the 8
EU and its member states are not known 9
To give an overview about stock and battery markets for the EU28 member states the 10
following bottom-up sources were utilized to give model estimations 11
bull Fraunhofer ISI in-house xEV database [3] The database has been developed in 2014 12
by Fraunhofer ISI and is updated since on an annual basis The last update was done 13
in November 2018 It covers global production and sales numbers for xEV models 14
broken down to countries as well as information on battery capacity and range of the 15
vehicles The database aggregates information provided by Marklines Co Ltd [4] the 16
European Alternative Fuels Observatory [5] the ev-sales blog [6] and other online 17
sources 18
bull Fraunhofer ISI in-house LIB database [7] The database covers information on the 19
major industrial players in the Li-ion business from materials to cell production The 20
development and location of production capacities is frequently updated Information 21
on performance and cost of commercially available battery cells as well as the meta 22
analysis of several studies providing forecasts on the respective developments are 23
also covered in the database Information is collected from several online sources and 24
available product data sheets 25
bull B3 corporation market studies B3 corporation provides topical market studies on xEV 26
ESS and material markets for Li-ion batteries The market data is updated on an 27
annual basis B3 studies have a global scope but occasionally also cover local 28
European markets 29
bull Additional market studies and databases as discussed in the following sections 30
222 Market stock and forecast for xEVs in Europe 31
As will be shown in section 23 the stock of installed medium or large-sized batteries in Europe 32
is strongly related to the diffusion of electric mobility In contrast to several Asian countries 33
xEV sales in Europe predominantly concern passenger cars Ebuses as well as light and 34
heavy commercial vehicles still do not play a major role in terms of installed capacity At 35
present the average energy content of a BEV passenger electric vehicle battery is higher than 36
40 kWh Small vehicles like the Renault Twizy feature a capacity of less than 10 kWh while 37
the models with highest capacity sold in EU28 countries approach the 100 kWh mark (Jaguar 38
iPace and Tesla Model X 90 kWh Tesla Model 3 73 kWh) The amount of battery capacity 39
installed in passenger PHEVs is about 10 kWh and has remained on a constant level over the 40
last years (see Figure 7) 41
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
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1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
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1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
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1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
12
1
Figure 7 Averaged battery energy content of xEVs sold in EU28 member countries 2
3
2221 Production and sales of BEV 4
Figure 8 shows the number of produced BEVs [3] broken down to the production country from 5
2010 to 2018 A forecast until 2020 based on the average growth rates between 2016 and 6
2018 is shown in addition This production data is a measure for the demand of battery cells 7
in the individual EU28 countries 8
Germany France and the Netherlands lead the field of BEV producers in Europe On 9
European level an average yearly growth rate of over 40 can be observed It is expected 10
that the number of 150000 produced BEVs in 2018 will double in 2020 11
12
Figure 8 Production numbers for BEVs produced in EU28 countries and forecast until 2020 13
[3] 14
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
13
In contrast to the production data the sales numbers for BEV reflect the amount of installed 1
vehicle batteries in the individual EU28 countries It can be seen in Figure 9 that the proportion 2
among the EU28 countries in terms of sold vehicles is much more even as compared to the 3
production Germany France the United Kingdom and the Netherlands lead the market 4
however significant sales numbers can also be found in other countries The level and growth 5
rates of BEV sales is comparable to BEV production It should however be noted that there is 6
significant trade with other regions of the world eg BEV imports from KR (Hyundai) and JP 7
(Mitsubishi Nissan) and exports to North America (BMW Volkswagen) Hence the BEV 8
market can not be considered to be an internal market 9
10
Figure 9 Number of sold BEVs in EU28 member states and forecast until 2020 [3] 11
2222 Production and sales of PHEV 12
Similar to section 2221 production and sales numbers for PHEV resolved by country are 13
shown in Figure 10 and Figure 11 Although on a comparable level in terms of produced and 14
sold vehicles it must be emphasized that the contribution of PHEVs to the demand for battery 15
capacity is due to the smaller size of the battery much less than the demand generated by 16
BEVs At present the main production sites for PHEVs are located in Germany Due to 17
production sites for Audi (VW) and Volvo PHEVs Sweden and Slovakia also significantly 18
contribute to the production 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
14
1
Figure 10 Production numbers for PHEVs produced in EU28 countries and forecast until 2
2020 [3] 3
In terms of sales the largest demand for PHEVs is generated in the UK Germany and 4
Sweden Interestingly the share of sold PHEVs also produced in the EU is higher as 5
compared to BEVs 6
7
Figure 11 Number of sold PHEVs in EU28 member states and forecast until 2020 [3] 8
2223 Forecast xEV sales and stock EU28 9
The data presented in sections 2221 and 2222 was used as an input for a forecast model 10
on passenger PHEV and BEV as well as light and heavy commercial xEVs (see also [8] and 11
section 26) 12
It was assumed that extrapolated EU wide sales numbers and growth rates for passenger as 13
well as light vehicles [9] represent natural boundaries for the growth of xEV markets Logistic 14
growth functions (see setion 26) were used to model market diffusion Passenger BEV were 15
assumed to replace 75 of all passenger car sales in the long term Passenger PHEV were 16
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
15
assumed to be an initially faster growing transition technology which will partially be replaced 1
by BEV in the long term A passenger xEV lifetime of 12 years with battery replacement rates 2
of 15 per lifetime were assumed For commercial vehicles a lifetime of 9 years and 3
replacement rate of 25 and a lifetime of 12 years and battery replacement rate of 80 were 4
assumed for light and heavy vehicles respectively The assumption for the market model is 5
summarized in Table 3 and Table 4 and shall be subject to discussion during the stakeholder 6
meeting 7
8
Parameter Value
Passenger vehicle market EU28 2017 17 mio vehicles per year
Light commercial vehicle market EU28 2017 19 mio vehicles per year
Heavy commercial vehicle market EU28 2017 04 mio vehicles per year
Passenger vehicle market growth rate EU28 07
Commercial vehicle market growth rate EU28 14
Share of passenger vehicle market addressable
by BEV
75
Share of passenger vehicle market addressable
by PHEV
100
Share of light commercial vehicle market
addressable by xEV (BEV + PHEV)
75
Share of heavy commercial vehicle market
addressable by xEV (BEV + PHEV)
20
Table 3 Assumptions and input parameters for the xEV market and growth model 9
Parameter Value
Passenger BEV lifetime 12 years
Passenger PHEV lifetime 12 years
Light commercial xEV lifetime 9 years
Heavy commercial xEV lifetime 12 years
Passenger BEV battery replacement rate 15
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
16
Passenger PHEV battery replacement rate 15
Light commercial xEV battery replacement rate 25
Heavy commercial xEV battery replacement
rate
80
Table 4 Assumptions and input parameters for the xEV battery demand model 1
The results of these calculations are presented in Figure 12 Figure 13 Figure 14 and Figure 2
15 respectively 3
4
Figure 12 Forecast passenger xEV sales and battery capacity demand until 2050 5
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
17
1
Figure 13 Forecast passenger xEV sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
18
1
2
Figure 14 Forecast commercial xEV sales and battery capacity demand until 2050 3
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
19
1
Figure 15 Forecast commercial xEV sales and battery capacity demand until 2050 2
223 Market stock and forecast for ESS in Europe 3
As discussed in Task 1 several stationary applications for batteries exist ranging from grid 4
support to home storage As will be shown in section 23 the demand for battery capacity 5
generated by ESS applications at present is rather small as compared to 3C and motive 6
markets There is no systematic registration of large scale or small scale stationary storage 7
systems in the EU Hence the market stock and volume for respective applications can only 8
be estimated based on indirect data 9
2231 Photovoltaic installations in the EU 10
Energy storage systems in combination with photovoltaic installations are one major 11
application for batteries both for private as well as commercial purposes Due to changes in 12
reimbursement and subsidy policy as well as the physical capability of the energy system to 13
buffer and process high shares of renewable energy the use of local energy storage systems 14
is becoming more and more popular There is no data on the share of PV installations 15
equipped with an energy storage system for the EU However on regional level some data is 16
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
20
available According to [10] approximately half of the PV systems with a peak power below 1
30 kW installed in Germany in 2017 have been equipped with an energy storage option 2
(amounting to about 30000 storage systems with a cumulative capacity of 400 MWh) 3
At present the installation of storage systems is strongly coupled to new installations of PV 4
systems As shown in Figure 16 with data on Germany the retrofit of existing PV installations 5
with storage systems is however expected to contribute significantly to the demand for battery 6
capacity in the PV segment in the future Within the forecast shown 50 of the sold storage 7
systems might be integrated into already existing PV-systems in 2030 8
9
Figure 16 PV installations and retrofit of existing PV installations in Germany Data and image 10
taken from [11] 11
Figure 17 shows the yearly installed PV power (MW) in the EU28 [12] A boom of PV 12
installations can clearly be observed for the years 2010 to 2012 mainly driven by installations 13
in Germany and Italy Likely as a result of changing subsidy policies the yearly installed PV 14
power has since then steadily decreased in both countries On the other hand a steady 15
increase in installations can be observed for the Netherlands and the UK In the forecast model 16
applied in [12] a slight increase in new installations is expected until 2021 driven by 17
installations in the UK and Portugal as well as member countries which so far do not have 18
any considerable PV installations Due to decreasing costs for solar panels and rather stable 19
remuneration rates this upward trend seems to be justified 20
21
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
21
1
Figure 17 PV installations in EU28 countries and forecast until 2020 Data taken from [12] 2
Based on the data given in [10] for Germany 80 of the installed PV systems can be attributed 3
to small or medium sized installations (average of 10 kWp) directly feeding into the low-voltage 4
grid In terms of power these systems amount to about 30 of the installations If equipped 5
with an energy storage system the average battery capacity amounts to 8 to 10 kWh [13] 6
Concerning installations in Europe it can be argued that there is a trend towards smaller roof-7
top systems for more densely populated and less sunny regions while in particular in the 8
southern European countries larger solar parks are favored Since no comprehensive data 9
covering the whole EU is available only a rough estimation for the demand of battery storage 10
systems and capacity can be made 11
Assuming that the number of smaller roof-top installations (30 of power) as well as the 12
number of systems equipped with an ESS (50 of installations lt 30 kWp) is above average 13
for Germany as compared to the rest of the EU the market data and forecasts given in [12] 14
and [11] would lead to a demand for battery capacity as summarized in Table 5 15
16
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
22
Year Yearly
installed
PV power
EU28
[B32017]
(GW)
Share of
power of
new
installations
appropriate
for home
ESS ()
Share of
new
appropriate
installations
equipped
with ESS
()
Yearly
number of
systems
equipped
with ESS
Average
capacity per
new ESS
[Figgener2018]
(kWh)
Yearly
demand
for
battery
capacity
(MWh)
2017 83 25 30 62000 85 530
2018 9 24 33 65700 95 620
2020 99 23 40 76300 11 840
Table 5 Estimation of the demand for battery capacity generated by PV-home ESS systems 1
based on [11] and [12] for the EU28 2
Note that this estimation does not take into account ESS installations for larger scale (gt30 3
kWp) PV-installations 4
2232 Wind Turbine installations in the EU 5
Similar to section 2231 for PV installations Figure 18 shows data and forecasts for wind 6
turbine power installations in the EU28 [12] In contrast to PV installations wind turbine power 7
is almost exclusively attributed to larger scale wind parks We conclude that the use of small 8
scale ESS for the optimization of private energy consumption is therefore not driven by wind 9
power installations 10
Still the ongoing installation of wind turbine power in the EU28 might become a driver for large 11
scale decentralized energy storage systems however there is no market data available which 12
would allow for a battery demand forecast 13
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
23
1
Figure 18 Wind turbine installations and forecast until 2020 Data taken from [12] 2
3
4
2233 Large battery ESS projects 5
The DOE Global Energy Storage Database [14] lists several larger scale ESS projects around 6
the world Figure 19 shows the cumulated storage capacity (installed stock) for the EU28 Of 7
the 450 MWh installed until 2018 in total 340 MWh were installed in Germany and 80 MWh 8
in the UK Since this is not an exhaustive list it can be considered as lower boundary for the 9
installed stock 10
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
24
1
Figure 19 Installed ESS capacity (stock) in large scale projects in EU28 A ratio of 11 with 2
respect to installed power and installed energy content (capacity) was assumed [14] 3
Table 6 lists larger scale (~MWh) stationary storage systems installed in the EU in 2017 [12] 4
80 of these installations are categorized as substation storage 6 relates to frequency 5
stabilization 5 to storage of wind-generated energy and 1 to storage of PV-generated 6
energy 7
Note that most of these installations are prototype or test facilities which does not allow to 8
use this application share as template for future market developments The total installed 9
capacity of 340 MWh in 2017 suggests that the market volume of large scale ESS is of the 10
same order of magnitude as that of home storage Note that the installed capacity for 2017 in 11
[14] is only 65 MWh It is however not stated in [12] whether the listed ESS projects are still in 12
construction or already operational 13
14
Name Country Purpose Capacity (MWh)
Vattenfall DE Wind 33
Eon UK Wind 6
Vattenfall Hamburg Bergedorf DE Wind 2
Dutch grid scale electrical equipment NL Wind 33
Acciona Energy Navarr ES Wind 04
Acciona Energy Navarr ES Wind 07
Element Power Tynemouth UK Substation 25
Western Power Distribution UK PV 07
Green Hedge UK Substation 19
Centrica Roosecote UK Substation 49
SWW Northern Bavaria DE Frequency 6
Eogie Deutschland DE Power Plant 13
Statkraft Lower Saxony DE Substation 5
Polskie Sieci Elektroenergetyczne SA PL Demonstration 1
EWE AG DE Demonstration 1
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
25
Enspire ME DE Substation 50
Amsterdam Arena NL Factory 4
Eon Arumbank west offshore DE Wind 05
Fortum FI Frequency 1
Eon Blackburn UK Frequency 25
VLC Energy Kent UK Frequency 10
VLC Energy Cumbria UK Frequency 25
Eneco Mitsubishi Jardelund DE Substation 65
Enel SPA Glasgow UK Substation 63
Daimler Herrenhausen DE Substation 15
EWE AG DE Demonstration 10
TILOS Aegean GR PV 24
Olde House Cornwell UK Substation 11
Vanadium Redox Flow Koblenz DE Factory 08
EDF West Burton UK Substation 35
EDF Paris FR Smart Grid 01
EU28 Wind 162
EU28 PV 31
EU28 Frequency 22
EU28 Substation 2704
EU28 Other 299
EU28 All (sum) 3416
Table 6 Large scale ESS installations in 2017 [12] 1
2234 Forecast ESS sales and stock EU28 2
The data presented in sections 2231 2232 and 2233 was used as an input for a forecast 3
model on large scale and home ESS 4
EU wide sales numbers and growth rates for PV coupled home storage systems were 5
extrapolated with declining growth rates for 2035 and beyond With respect to large scale ESS 6
it was assumed that the generation of electricity by renewable sources exceeding 17 (2015 7
value [15]) of the total electricity generation necessitates a certain amount of ESS buffer 8
capacity EU 2020 and 2030 targets [16 17] for the share of renewable electricity generation 9
were used as a forecast model The buffer capacity demand was estimated to be 70 of the 10
daily electrical energy generated by renewables exceeding the share of 17 11
A lifetime of 20 years with a replacement rate of 10 was assumed for home ESS and a 12
lifetime of 20 years with a battery replacement rate of 80 within this lifetime was assumed 13
for large scale ESS System capacities were modelled by a power law based on present-day 14
values The assumptions for the market model are summarized in Table 7 and Table 8 and 15
shall be subject to discussion during the stakeholder meeting 16
17
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
26
Parameter Value
Rooftop PV new installations EU28 2017 190 k
Rooftop new installations EU28 2030 2050 310 k 470 k
Share of rooftop PV new installations equipped
with ESS 2014 2050
30 60
Large scale ESS battery capacity installations
EU28 2017
300 MWh
Share of renewable energy generation in EU28
2017 2020 2030 2050
17 20 27 40
Threshold of renewable energy generation in
EU28 requiring the use of ESS
17
Energy required to store in ESS 70 of average daily renewable energy
generation above threshold
Table 7 Assumptions and input parameters for the ESS market and growth model 1
Parameter Value
Home ESS lifetime 20 years
Large scale ESS lifetime 20 years
Home ESS battery replacement rate 10
Large scale ESS battery replacement rate 80
Table 8 Assumptions and input parameters for the ESS battery demand model 2
The results of these calculations are shown in Figure 20 and Figure 21 See annex for further 3
comments 4
5
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
27
1
Figure 20 Forecast large scale ESS sales and battery capacity demand until 2050 2
3
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
28
1
Figure 21 Forecast home ESS sales and battery capacity demand until 2050 2
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
29
224 Summary of the market sales forecast and estimation of the future 1
and past stock 2
As shown in sections 222 and 223 several drivers exist for the application of battery storage 3
systems in stationary and motive applications While the demand for battery capacity 4
generated by BEV and PHEV passenger cars was on the level of several GWh for 2017 the 5
ESS markets might still be below the 1 GWh mark in the EU 6
With respect to the increase of average battery capacity installed in different applications (see 7
Figure 22) and the growth rates for the sales of xEV and ESS (see sections 2223 and 8
2232) forecasts for the total new installations (including replacements) of batteries in the 9
EU28 are shown in Figure 23 See annex for further comments 10
11
Figure 22 Average system battery energy (kWh or MWh) forecast 12
It can be expected that the demand generated by sales and replacements in the EU28 will 13
amount to about 20 GWh by 2020 100 GWh by 2025 and more than 400 GWh by 2030 14
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
30
1
Figure 23 Total new installations (including replacements) of battery capacity in the EU28 2
3
Year New
installations (GWh)
Replacements (GWh)
Decommissions (GWh)
Stock (GWh)
2015 34 00 00 450
2016 45 02 00 502
2017 59 03 00 568
2018 78 06 00 654
2019 106 09 00 768
2020 145 13 00 923
2025 786 66 09 3326
2030 3649 324 119 13931
2035 7812 1128 619 40045
2040 10623 2410 2684 74797
2045 12808 3756 6266 104589
2050 14686 5064 8751 126687
Table 9 Installations and stock of xEV batteries Note that decommissions are zero before 4
2020 due to model limitations 5
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
31
Year New installations
(GWh) Replacements
(GWh) Decommissions
(GWh) Stock (GWh)
2015 08 00 00 22
2016 08 00 00 29
2017 08 00 00 37
2018 09 00 00 45
2019 09 01 00 54
2020 10 01 00 64
2025 15 02 00 121
2030 29 05 00 217
2035 83 12 08 438
2040 312 40 10 1160
2045 699 134 15 3460
2050 999 304 29 7470
Table 10 Installations and stock of ESS batteries Note that decommissions are zero before 1
2030 due to model limitations 2
23 Market trends 3
231 General objective of subtask 23 and approach 4
The following chapter provides a comprehensive market overview on global battery sales 5
demand and players Starting with the market development of Lithium-ion batteries between 6
2010 to 2017 scenarios until 2025 to 2030 are presented including a meta-analysis of several 7
most recent market reports (eg [18ndash27]) Step by step the regional markets and markets by 8
applications will be specified 9
232 Market drivers and CO2 legislation [28] 10
Climate and energy policies are main drivers for the energy future and are expected to lead to 11
an increasing demand for energy storage in the mid and long term (see Figure 24) According 12
to the European Unionacutes decarbonization objective a reduction of greenhouse gas (GHG) 13
emissions to 80 ndash 95 below 1990 levels should be achieved by 2050 14
In particular for the transport sector no full decarbonization is achieved [29] even in the longer 15
term (other sectors have to compensate with higher GHG reductions) The overall reduction 16
achieved in the transport sector by 2050 is only around 60 below 1990 levels The 17
increasing trend in emissions seen over the past 20 years is expected to reverse by the CO2 18
legislation From 2020 on the fleet average to be achieved by all new cars is 95 grams of CO2 19
per kilometer (compared to 130 gkm in 2015) 20
Many other governments world-wide have specified CO2 emission targets and are striving 21
towards a low carbon economy Particularly in the field of passenger and commercial vehicles 22
fuel consumption and emission targets have been installed which significantly drive the 23
introduction of battery or fuel cell powered electric vehicles Among these emission policies 24
the targets set by the EU are among the most ambitious (see Table 11) Meeting them will 25
require a significant share of electric vehicles 26
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
32
Japan China Korea USA EU
Fuel consumption
target 2020 (l100 km)
49 5 42 58 41
CO2-emission target
2020 (gkm)
115 117 97 136 95 (until
2021)
CO2-emission target
2025 (gkm)
- 94 - 91 81
Table 11 Overview about fuel consumption and CO2-emission targets for passenger vehicles 1
of the EU and other countries leading battery and electric mobility markets [30] 2
In this context electric mobility is gaining importance since electric vehicles especially plug-3
in hybrid and pure battery electric vehicles can help to achieve or fulfill these limits due to 4
improved CO2 footprints compared to conventional cars However for low CO2 footprints over 5
the lifetime of electric cars a high share of ldquolow carbonrdquo renewable energy sources (RES) in 6
the energy mix is needed and important (Figure 24 left side) 7
8
Figure 24 Climate and energy policies as drivers for future energy storage demand [28] 9
The EU Energy Roadmap 2050 [31 32] has shown across six scenarios that the 10
decarbonization goal can be achieved if the share of renewable energy sources (RES) among 11
the power generation capacity is high (gt 60 until 2050) for all scenarios Especially for the 12
high RES scenario the share of fluctuating energy generation (wind photovoltaic ndash PV) is the 13
strongest which has to be balanced Grid expansion andor flexibilization measures (eg 14
demand side management power to gas and vehicle to grid besides stationary battery 15
storage) are potential solutions Thus the high RES scenario is the most interesting scenario 16
with respect to a potential future demand for energy storage solutions (ESS) on local 17
distribution and transmission grid levels (Figure 24 right side) In order to have a significant 18
GHG reduction with EVs it will also be important to achieve the RES targets 19
20
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
33
233 The developing battery market 1
The total annual battery market is currently on the level of 45-60 billion Euro representing 2
approximately 400-500 GWh (including Lead-acid Lithium-Ion and other batteries) [33] 3
Lithium-ion batteries (LIB) have succeeded because of their high gravimetric and volumetric 4
energy densities and have a market share of about a third in terms of value among the whole 5
battery market The growth is driven by the decreasing cell costs of less than 170 eurokWh for a 6
standard cylindrical cell (lowest prices) approaching the 90 eurokWh mark in the next years This 7
cost degression is due to increasing capacity demand and production and thus due to scale 8
effects 9
Although the LIB market is drastically growing with annual growth rates of up to 30 percent 10
on average (in terms of battery capacity demand) the dominating battery technology in terms 11
of capacity however are still lead-acid batteries representing about 90 percent of the global 12
demand in volume around 2010 and 80 percent in 2017 13
14
15
Figure 25 Historical development of the global battery demand in GWh (left axis for NiCd 16
NiMH right axis for all other battery types grey total battery demand) [34] 17
Other mature battery technologies like NiCd (still partly used in power tools) and NiMH (still 18
used in hybrid electric vehicles HEV) are slowly declining and are expected to disappear from 19
the market in the next decade The diversification of future battery applications however will 20
also broaden the range of battery technologies Emerging technologies like Na-based Metal-21
Sulfur or Redox Flow batteries are developing and may lead to attractive solutions eg with 22
respect to cost and resource availability advantages However due to very strict requirements 23
on volumetric energy densities these technologies are expected to be relevant for stationary 24
or other special markets and less for the most significant electric vehicle market In general 25
each technology has its own strengths and weaknesses and none of them can satisfy all user 26
demands Hence a broader application-specific technology portfolio is urgently needed in 27
order to provide alternative technology solutions in the future 28
The extremely dynamic development of the global LIB demand will lead to the TWh level latest 29
around 2030 and grow further after 2030 Thus LIB will very soon transform into the 30
dominating energy storage technology 31
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
34
Figure 26 shows three different scenarios for the global demand for LIB between 2010 and 1
2030 (green curves) along with global production capacities (orange and blue curve)[33] 2
While at the beginning of the decade the demand and sales numbers followed the medium 3
growth rate trend scenario the market has been approaching the high growth rate scenario in 4
the last years This is mainly due to the strong engagement of politics and respective 5
regulation and subsidy programs for electric mobility As can be seen from the graph the 6
share of demand generated by motive applications is expected to significantly grow in the next 7
years and might account for more than one third of the total LIB demand by 2025 8
To face this increasing demand for LIB cells accordingly production capacities need to be 9
build up in the near future Based on the currently existing cell production capacities and the 10
global announcements from established and new cell producers until 2025 the LIB cell 11
production capacities (blue line in 12
Figure 26) have been identified Compared to 15 GWh added production capacity between 13
2013 and 2016 in the next years around 50 GWh will be added annually leading to around 14
700 GWh production capacities until 2025 (in the optimistic case see blue line in 15
Figure 26) The announcements include established players such as Panasonic (JP) LG 16
Chem (KR) Samsung (KR) SKI (KR) BYD (CN) Lishen (CN) CATL (CN) CALB (CN) 17
OPTIMUM (CN) and several further Chinese cell producers Also new players such as TerraE 18
(DE) Northvolt (SW) Boston Energy (US AU) Energy Absolute (Thailand) are included 19
while accounting for the different stages of expansion [20 27] 20
21
Figure 26 Global LIB cell production capacities vs demand 2010 to 2030 [33] 22
234 Battery markets by application 23
Diversification of applications for batteries 24
The above described global developments of battery demand and production strongly concern 25
high-energy lithium-ion batteries with the cell chemistries NMC NCA (Ni-rich and Co-reduced 26
cathodes) and SiC (high capacity SiC anodes with 5-10 or higher Si content) and cell 27
formats cylindrical (eg larger 21700 compared to standard 18650) large pouch or prismatic 28
cells The target is to develop and produce cells with improved gravimetric and volumetric 29
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
35
energy densities and reduced costs in order to meet the requirements of the automotive 1
industry Electric passenger cars are driving the demand and thus development of the battery 2
technology and these optimized and cost reduced batteries define the benchmark today and 3
in the future 4
LIB demand by applications 5
In Figure 27 the global LIB demand is broken down to the three main sectors for battery 6
demand which can be characterised each having different profiles of requirement 7
bull electric mobility or electric vehicles (EV including eg passenger cars light 8
commercial vehicles buses trucks scooters ebikes etc) 9
bull stationary energy storage systems (ESS) and 10
bull portable devices (3C ndash Computer Communication Consumer) 11
The LIB cell demand developed to almost 25 GWh in 2010 since the market introduction in 12
the early 1990s and dominantly resulted from portable devices In 2015 the cell demand of 13
about 70 GWh was distributed already almost 5050 between 3C and EV applications 14
15
Figure 27 Global LIB demand (in GWh and share in ) by segment [34] 16
Since 2015 the global LIB demand has increased with compound annual growth rates 17
(CAGR) of ~25 from about 70 GWh to about 110 GWh in 2017 The market for electric 18
vehicles currently grows with 30-40 (and more depending on the application and region) and 19
a diversification in applications (eg buses trucks other light to heavy commercial vehicles 20
marine applications drones etc) can be observed 21
With the diversification of future markets and applications cost sensitive markets will arise for 22
which optimized high-energy and cost reduced automotive cells of certain cell formats will be 23
used However also applications with stronger requirements on long lifetime high cycleability 24
fast charging capability safety etc will emerge and diffuse where cost is not the most 25
relevant factor and other battery technologies (ie cell chemistries formats) can provide a 26
unique selling proposition and hence lead to a product differentiation 27
2341 LIB markets for 3C applications 28
Portable devices (3C) have been the main applications for LIB cells in the past Power tools 29
medical devices and wearables are expected to be products with an emerging future market 30
for small LIB cells but with enormous quantities The price per kWh that can be stored plays a 31
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
36
less important role for these applications As far as charging is concerned technologies such 1
as energy harvesting and wireless charging are expected to be introduced in the future For 2
many markets and products such as household devices garden cleaning power tools other 3
mobile leisure applications etc today mostly cylindrical LIB cells of the format 18650 are used 4
With the introduction of 21700 cells also larger cylindrical cells become available now and are 5
expected to be used in diffuse in such applications Although different specific cell chemistries 6
might be suitable depending on the concrete application again it can be stated that the 3C 7
segment is expected to lead to a comparably small battery capacity demand compared to the 8
EV segment and will not be the limiting segment with respect to the risk of resource 9
dependencies 10
In the next few years growth rates of about 5 to 10 percent are expected for the 3C markets 11
while laptop battery demand is developing at lower growth rates and power tools medical 12
devices etc are supporting the growth rates for the battery demand 13
14
15
Figure 28 Demand and growth of the 3C LIB market [34] 16
2342 LIB markets for stationary (ESS) applications 17
Stationary energy storage systems (ESS) can be divided into different size classes with regard 18
to the capacity and charging times Both together decide on the application area (eg small 19
PV storage at home peak load to long-term storage) [35] Beyond that the price per kWh put 20
through over the lifetime is the economic key factor (as synthesized by the LCOE levelized 21
cost of energy) In contrast gravimetric and volumetric energy density plays a subordinate 22
role Due to that lead-acid batteries were often used as storage technology for off- and on-23
grid storage Currently LIBs are being established for commercial use and meanwhile reach 24
an annual demand of some few GWh Other electrochemical storage technologies such as 25
sodium-sulfur batteries are still used but the demand for LIB is strongly increasing for ESS It 26
is expected that 2nd life concepts for batteries that had their first life in electric vehicles will 27
gain importance together with market diffusion in the EV segment as the requirements on the 28
batteries are less demanding in the ESS segment This however will require the development 29
of according business models standardization etc The much broader available technology 30
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
37
portfolio for ESS applications the use of 2nd life batteries and the fact that electric vehicle 1
batteries that are connected to the grid on a large scale with higher market diffusion can be 2
regarded as stationary storage systems as well (vehicle to grid V2G grid to vehicle G2V) help 3
to reduce the risk of technological and resource dependencies in the future 4
The market for stationary storage applications (ESS) is experiencing growth rates of 20 to 30 5
percent depending on individual market forecasts (in the last years CAGR have even been on 6
the level of 60 but decrease with increasing size of the market see Figure 29) 7
The market is currently on a level of few GWh including applications from smaller PV storage 8
systems of 5-10 kWh to larger industrial and grid connected installations for own power 9
consumption peak shaving etc on the MWh level Regarding these growth rates LIB for ESS 10
applications rapidly gain importance as de-central storage solutions compared to the currently 11
dominating central pumped hydro storage (PHS) Forecasts to 2025 differ by size and expect 12
an ESS LIB demand between 20-50 GWh (partially higher eg in [23]) but all forecasts identify 13
high growth rates 14
15
Figure 29 Demand and growth of the ESS LIB market [34] 16
17
2343 LIB markets for electric vehicle applications 18
One of the biggest challenges for batteries for electric vehicles (EV including electric cars 19
buses trucks etc) apart from their price is the increase of their volumetric and gravimetric 20
energy density The volumetric energy density is even more important for OEM due to 21
restricted and fixed space and location of the battery in an electric vehicle A very relevant 22
parameter of a battery is its charging and discharging power in particular in continuous 23
operation It determines the fast-charging capability which is an important argument in the 24
use and the establishment on the market At the same time this sets limits to the high-25
performance operation since energy consumption is reduced to protect the battery from 26
damage This illustrates the conflicting effect of different parameters on the battery lifetime 27
Price volume weight and thus charge density as well as chargedischarge rate in terms of 28
usage and durability are the most urgent challenges for battery manufacturers 29
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
38
The market for EV batteries is currently at the level of about 50 GWh (including electric 1
passenger cars busses trucks ebikes scooter forklifts etc) Growth rates are at 20 to 40 2
percent and the demand for EV batteries will lead to a share of about 66 percent in 2020 76 3
percent until 2025 and 80 percent or higher in the long term Electric passenger cars (BEV 4
and PHEV) define the by far largest market within the EV segment and are clearly driving the 5
technology development of high energy Lithium-Ion or Lithium-based batteries in the future 6
7
Figure 30 Demand and growth of the EV LIB market [34] 8
9
Other motive (or stationary or portable) markets applications besides the highly competitive 10
electric passenger cars therefore can offer interesting growth markets also for smaller cell 11
producers beyond the large Japanese Korean and Chinese cell producers These markets or 12
applications very often define concrete requirements for the battery performance they require 13
an in depth understanding and design from the cell chemistry format to the modulepack and 14
system integration and they still vary strongly by region and are connected to individual system 15
integrators or OEM This is because each technology has its own strengths and weaknesses 16
and none of them can satisfy all userapplication demands Hence a broader application 17
specific technology portfolio is even urgently needed in order to provide alternative individual 18
technology solutions for these emerging marketsapplications 19
20
235 Market channels and production structure 21
2351 Global production capacities and major players 22
Since their commercialization in the 1990s LIB have been predominantly produced by 23
Japanese and Korean companies Driven by the Chinese government particularly cell 24
producers but also companies covering other steps of the LIB value creation chain have been 25
established in China Due to a policy of simultaneous support for LIB production as well as for 26
application markets and due to an extensive subsidy scheme a large share of LIB production 27
capacities is located in China today 28
Figure 31 Figure 32 Figure 33 and Figure 34 show the global LIB production capacities of 29
major cell producers in 2018 as well as forecasts for 2020 2025 and 2030 respectively [36] 30
The data is based on announcements made by the cell producers As discussed in section 31
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
39
233 the actual time-frame for the implementation of the capacity expansions is often delayed 1
with respect to the original announcements Hence minimum and maximum values for the 2
production capacities are given 3
4
Figure 31 Global LIB production capacities of major cell producers in 2018 [36] 5
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
40
1
Figure 32 Global LIB production capacities of major cell producers in 2020 [36] 2
3
Figure 33 Global LIB production capacities of major cell producers in 2025 [36] 4
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
41
1
Figure 34 Global LIB production capacities of major cell producers in 2030 [36] 2
Until 2030 the announced production capacities add up to more than 1 TWh In total there 3
are about 30 cell producers which have announced to build up production capacities of more 4
than 10 GWhyear which can be considered to be a threshold in order to be able to produce 5
at competitve costs [36] If the announced capacities are fully utilized the ldquobig 4rdquo (Panasonic 6
CATL LGC and BYD) will be able to fully cover the market demand (gt550 GWh) until 2025 7
2352 Europes position in the global battery value chain 8
In the EU several actors are positioned which cover production steps along the whole value 9
chain of LIBs starting from raw material production to production of cells and systems and 10
finally recycling However with respect to global markets only few organizations within the EU 11
have a market share of more than 1 in their specific segment eg BASF Germany in the 12
field of electrolyte production [30] 13
An overview about existing and active companies is given by the European Battery Alliance 14
(see Figure 35) Due to the presence of strong automotive OEM LIB pack manufacturing and 15
system integration is taking place on large scale in Europe A particular gap in the value chain 16
is present due to the lack of a large-scale cell production capable of serving the volumes and 17
prices required by the automotive industry 18
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
42
1
Figure 35 Main stakeholders around the European Battery Alliance (EBA) [37] 2
An overview about the position of European manufacturers and production plants located in 3
Europe is provided in Figure 36 and Figure 37 4
5
Figure 36 LIB cell production capacities by origin of manufacturer (company) [38] 6
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
43
1
Figure 37 LIB cell production capacities by location of plant [38] 2
3
Several consortia are currently attempting to build up a European large scale cell 4
manufacturing such as Nothvolt (Sweden) with 32 GWh until 2023 or Saft (together with 5
Siemens and Manz) [39] Recently the German government announced plans for funding of 6
a Batterie-Cell-Alliance between Germany and Poland with cell production capacities in the 7
Regions Lausitz (Germany) and Westpoland [40 41] At the cross section between RampD and 8
large-scale production also a Research Production with 600 Mio EUR funding is foreseen 9
whereas the Fraunhofer Society should coordinate and run such a research production [42] 10
The announced funding from the German government sums up to 2 bn EUR 11
Given all these announced investments and production capacities to build up in the next years 12
the cell production capacities of European cell manufacturers could sum up to over 40 GWh 13
beyond 2025 In contrast main Asian cell manufacturer have already started with cell 14
production (eg LG SDI) or plan to build up production capacities until 2020 to 2025 In 15
concrete there are plans from [43ndash51] 16
17
bull CATL (China) to build 14 GWh in Germany Erfurt beyond 2020 18
bull LG Chem (Japan) to build 15 to 24 GWh (for 03 Mio EVs) in Poland beyond 2020 19
bull Samsung SDI (Japan) to build 10 to 15 GWh beyond 2020 in Hungary (including a 20
recent 5 GWh announcement for 21700 cells for Land Rover 21
bull SK Innovation (Japan) to build 75 GWh in Hungary beyond 2020 22
bull PanasonicTesla to build a (assumed 35GWh) Gigafactory in Europa around 2025 23
bull as well as from BYD (China) GS Yuasa (Japan) and Farasis (US) to build production 24
capacities between 2020 and 2025 25
26
The production capacities from Asian (or non-European) cell manufacturer might sum up to 27
well above 82-96 GWh by 2025 and including BYD GS Yuasa Farasis etc capacities far 28
above 100 GWh can be expected Together with the new EU cell producers this could easily 29
sum up towards the above mentioned 200 GWh demand in Europe But it also clearly indicates 30
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
44
the competition the emerging European players have to face (besides the fact that the plans 1
of the Asian companies are expected to be realized already several years earlier as those of 2
the novel EU companies) 3
2353 Product design trends and technological roadmap 4
Concerning the battery technology or type (by chemistry format etc) which will most likely 5
be produced to address this increasing demand the global roadmaps of cell producers are 6
basically similar Based on state-of-the art cell design (eg LFP NCA based ldquogeneration 1rdquo 7
and NMC111 to NMC532 ldquogeneration 2abrdquo Li-ion batteries) [52] and state-of-the-art 8
production equipment incremental improvements are expected in the next few years but with 9
the target to get to higher-energy lithium-ion batteries Concerning the electrolytes still liquid 10
electrolytes will be used but adopted to the changing electrode materials (eg with additives) 11
Current trends for layered oxide cathodes describe the development of Ni-rich (Co reduced) 12
materials (NMC) A few cell producers are already using NMC811 or comparable cathode 13
materials others are still adopting NMC622 (also referred to as ldquogeneration 3ardquo) On cathode 14
side maybe even lower-cost Mn-rich High Energy NMCs (HE-NMC) might be realized and 15
produced within ~10 years as Mn is cheaper than Ni (also referred to as ldquogeneration 3brdquo) On 16
anode side the trend is to incorporate Si-nano particles to make use of the alloying reaction 17
between Si and Li yielding a high capacitance This however comes at the cost of cycle life 18
Further down the road we might see higher Si contents (~20) 19
20
All-solid-state batteries are on the roadmap of many battery producers but also OEM (also 21
referred to as ldquogeneration 4rdquo) The key performance parameters (KPI) are suitable for electric 22
mobility (EV) Main challenges are indeed manufacturability particularly for ceramic solid state 23
electrolytes which promise to yield the highest advantages over state of the art technologies 24
The market introduction in niche applications is expected possible prior to the use in 25
automotive applications First all-solid-state batteries might not be competitive in terms of 26
energy density but safety properties Later on energy densities of 350-400 Whkg and higher 27
are expected 28
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
45
1
Figure 38 Time to market correlation to the manufacturability of materials and battery cell 2
technologies (based on [33]) 3
Other technologies (not marked in blue in the above figure) feature certain USPs compared to 4
Li-ion batteries but (according to the current level of knowledge) do not reach the necessary 5
KPIs in terms of energy density power density and cycling stability necessary for electric 6
mobility (these are marked in grey) USPs of these technologies can be cost resource 7
availability either volumetric or gravimetric energy density or others But often even 8
fundamental challenges are not solved yet (eg concerning the stability of materials and 9
electrochemical systems kinetics etc) 10
11
12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
46
1
24 Consumer expenditure base data 2
241 General objective of subtask 24 and approach 3
Subtask 24 gives an overview about average production costs and consumer prices incl 4
VAT (for consumer prices streetprice) excl VAT (for B2B products) as well as an estimation 5
of repair and maintenance as well as installation and disposal costs 6
Due to their recent larger scale market introduction there is still little experience with 7
maintenance as well as disposal expenses Hence only estimations can be made based on 8
isolated sources 9
242 Development of LIB cell costs 10
As the core of LIB based energy storage systems the battery cell exhibits the highest cost 11
share During the last years particularly standardized 18650 format LIB cells have 12
experienced a steep cost learning curve benefiting from production scale effects but also 13
from technological advancements on material level increasing the energy density per volume 14
and weight and decreasing the amount of cost intense Cobalt-based components Compared 15
to this benchmark larger format LIB cells (Pouch prismatic) as are utilized in xEVs and ESS 16
predominantly feature lower energy densities at higher cost per kWh There are however no 17
principal limitations which would prevent a performance and cost development similar to what 18
was observed for cylindrical cells Figure 39 shows the cost learning curves for cylindrical as 19
well as larger format LIB cells [33] Today average costs for cells suitable for automotive use 20
are below 150 eurokWh (cylindrical) and around 200 eurokWh (Pouchprismatic) In specific cases 21
prices around 100 eurokWh have been reported already [53] It should however be noted that 22
with the current market situation LIB prices being below costs are not unlikely to occur 23
Until 2025 production costs of the different cell formats are expected to approach and fall 24
below the mark of 100 eurokWh between 2020 and 2025 Taking further developments on 25
material level into account costs around 60-100 eurokWh seam feasible past 2025 26
27
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
47
1
2
Figure 39 Cost learning curves for large LIB cells (cylindrical and Pouchprismatic) [33] 3
Similar cost learning curves have been observed for other battery technologies (see Figure 4
40) In principal cost degression can be limited by demand (compare NiCd) or by reaching 5
material cost limits (compare Pb) Also the diffusion of battery technologies in new markets 6
or applications can lead to further technological improvements and justify higher production 7
costs (compare deviation of NiMH Pb) Following the available data for LIB cells approx 100 8
$kWh (~89 eurokWh) are reached at a cumulative yearly production of 1TWh This mark is 9
expected to be reached between 2020 and 2030 10
Beyond 2030 LIB production costs are however expected to start deviating from this curve 11
due to limiting raw material prices 12
13
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
48
1
Figure 40 Cost learning curve for different battery technologies [36] 2
3
243 Development of storage cost for xEVs and ESS 4
2431 xEV 5
Will be added in a later review 6
2432 ESS 7
According to recent end-customer price data provided in [55] for 2018 typical consumer prices 8
for small scale (~10 kWh) stationary home storage systems are between 5000 and 15000 9
Euros leading to a relative price of 800 to 1200 eurokWh It is expected that these system prices 10
will benefit from the growing battery markets (also xEV) since similar LIB cell types can be 11
applied in both application areas With respect to inverters and other system related costs the 12
smaller market volume of home ESS indicates lower economy of scale effects as compared 13
to cells 14
244 Installation repair and maintenance costs 15
2441 xEV 16
So far no comprehensive information on repair and maintenance costs for the battery system 17
of xEVs are available Due to still rather accommodating service policies repair or 18
replacement of batteries is so far often covered by the manufacturer 19
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
49
2442 ESS 1
Installation costs of home storage systems are estimated to be between 900 ndash 3500 euro [56] 2
So far there is no comprehensive information on repair and maintenance costs 3
245 LIB life-cycle disposal and recycling considerations 4
Will be added in a later review 5
2451 Second life and recycling considerations 6
Until today only pilot projects Strategy of automotive OEM regarding second life applications 7
is not known 8
Value of recycled materials can be estimated 9
Three main scenarios possible after end of 1st life (xEV) 10
1 Disposal of batteries (eg separation of liquid and solid components hazardous waste 11
disposal) 12
2 Recycling of batteries and direct regeneration and re-use of cathode materials (2a) or 13
recovery of metals (2b) 14
3 2nd life in ESS applications under limited load (low DOD cycling low power) 15
16
Scenario 1 will add another component to battery costs scenario 2 and 3 could significantly 17
decrease the cost of batteries if energy efficient recycling methods can be developed or viable 18
2nd life business models are established 19
20
21
Figure 41 Material cost share for generic NMC622 LIB cell without (left 96 $kWh) and with 22
recycling of Cu Co and Ni (right cost 85 $kWh) Estimated recycling cost of 10 $kWh [36] 23
25 Recommendations 24
Will be added in a later review 25
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
50
251 General objective of subtask 25 1
This task makes recommendations with regard to a refined product scope from an economical 2
commercial perspective (eg exclude niche markets) and identify barriers and opportunities 3
for Ecodesign from the economical commercial perspective 4
252 Refined product scope from the economical commercial 5
perspective 6
Will be added in a later review 7
253 Barriers and opportunities for Ecodesign from the economical 8
commercial perspective 9
Will be added in a later review 10
254 General conclusion 11
Will be added in a later review 12
13
14
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
51
26 Annex 1
2611 Modelling of addressable markets for electric applications 2
Vehicle markets (in units of registrations in the EU28 per year) and ESS markets (in units of 3
number of installed home PV systems or in units of overall renewable (PV wind) electricity 4
generation in the EU28 per year) were modelled by exponential functions 5
119872119905119886119901119901(119905) = 1198720 times 119864119909119901(119905120591) 6
With Mtapp(t) being the total market volume of an application M0 the market size in 2015 and 7
120591 times 119871119899(2) the time t necessary to double the initial market volume M0 M0 and Tau were chosen 8
to fit existing market data 9
119872119886119901119901(119905) = 119888 times 1198720 times 119864119909119901(119905120591) 10
With Mapp(t) being the addressable market and c a factor equal or smaller than 1 Parameter 11
c lt 1 was chosen to take into account that not the whole existing market Mtapp might be 12
addressable by electric technologies Eg a share of vehicles primarily used for long distance 13
travel might not be addressable by BEV but by PHEV only 14
The market addressable for passenger PHEV (as a transition technology on the path to full 15
electric vehicles) was modelled as the difference of total vehicle sales and BEV sales 16
119872119875119867119864119881(119905) = 119888 times 119872119905119901119886119904119904119890119899119892119890119903(119905) minus 119878119861119864119881(119905) 17
The market addressable for passenger BEV was modelled like Mapp(t) with c lt 1 18
2612 Modelling of sales numbers of xEV and ESS 19
Yearly sales numbers Sapp(t) for the different applications were modelled by logistic growth 20
functions Logistic functions can model diffusion of technologies into existing markets with a 21
given market volume M The market volume can be a moving target M = M(t) The relative 22
change of sales numbers Srsquoapp(t)Sapp(t) is proportional to the market volume not yet 23
developed by a technology Mapp(t) ndash Sapp(t) 24
119878119886119901119901(119905) = 119872119886119901119901(119905) times1
1 + 119864119909119901(minus119872119886119901119901(119905) times (119905 minus 1199050)120591)(119872119886119901119901(119905)
119878119886119901119901(1199050)minus 1)
25
With Tau being a time constant and Sapp(t0) being the yearly sales number at year t0 (eg 26
2015) 27
Short time constants Tau of few years were used to model ESS sales Due to limitations of 28
the existing electricity grid to only buffer a certain share of fluctuating PV and wind generated 29
electricity the further expansion of renewable electricity generation might be strongly coupled 30
to ESS installations Hence ESS sales were modelled to closely follow the assumed 31
installations of renewable power in the limit of ldquovery fastrdquo market diffusion (120591 rarr 0) 32
2613 Modelling of battery system capacities 33
Battery capacities EBatt(t) of the different applications were modelled by power laws In 34
particular BEV battery capacities increased in the last years from 30 kWh in 2013 to more than 35
40 kWh in 2018 (EU sales and production averages) In the long term we expect BEV 36
capacities to converge towards a value sufficient to provide average driving ranges of some 37
100 km Battery capacity growth rates are hence supposed to slow down 38
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
52
119864119861119886119905119905(119905) = 1198640 + 119896 times (119905 minus 1199050)119887 1
With E0 being the average battery capacity in year t0 k the growth rate t the time in years and 2
b an exponent lt 1 The parameters were chosen to fit existing data 3
2614 Modelling of battery replacement rates 4
Battery replacement rates RrBatt(t) of the different applications were modelled by power laws 5
The replacement rate defines the share of batteries installed in year t that had to be replaced 6
within the lifetime of a system (xEV ESS) In particular for vehicles it is assumed that xEV 7
manufacturers currently install battery cells with a high lifetime and cyclability (several 8
thousand cycles) In the mid-term we expect that battery life and vehicle life (eg 200000 to 9
300000 km) will be matched by car manufacturers Assuming a constant vehicle lifetime 10
battery replacement rates are supposed to increase over time 11
119877119903119861119886119905119905(119905) = 1198770 + 119896 times (119905 minus 1199050)119887 12
With R0 being the average replacement rate in year t0 k the growth rate t the time in years 13
and b an exponent lt 1 At present there is no data available to fit the parameters Parameters 14
were estimated based on the usage profile and load of different applications 15
2615 Modelling of system lifetimes (xEV ESS) 16
System lifetimes Ltsystem(t) were assumed to be constant Ltsystem(t)= Ltsystem Parameters were 17
estimated based on manufacturer statements and typical lifetimes for combustion powered 18
vehicles 19
2616 Calculation of battery replacements 20
Battery replacements RpBatt(t) (either in units of GWh or units of number of systems) were 21
calculated by assuming a uniform distribution of battery replacements over the lifetime 22
Ltsystem(i) of battery systems installed in year i 23
119877119901119861119886119905119905(119905) = sum119877119903119861119886119905119905(119894) times 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119871119905119904119910119904119905119890119898(119894)
119905
119894ge119905minus119871119905119904119910119904119905119890119898(119894)
24
2617 Calculation of battery decommissions 25
Battery decommissions DcBatt(t) (either in units of GWh or units of number of systems) were 26
assumed to happen coincident with the end of life of the systems (Ltsystem) they were installed 27
in in year i This neglects any second life usage in t gt i It was assumed that xEV or ESS 28
manufacturers will tune the battery lifetime to match the system lifetime (see 2614) 29
119863119888119861119886119905119905(119905) = sum 119878119886119901119901(119894) times 119864119861119886119905119905(119894)
119894=119905minus119871119905119904119910119904119905119890119898(119894)
30
2618 Calculation of yearly installed battery capacity 31
The yearly installed battery capacity Sbapp(t) in the EU28 was calculated as 32
119878119887119886119901119901(119905) = 119878119886119901119901(119905) times 119864119886119901119901119861119886119905119905(119905) + 119877119901119886119901119901
119861119886119905119905(119905) 33
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
53
2619 Calculation of battery capacity stock 1
The stock of battery capacity Capp installed in the EU28 in year t was calculated as 2
119862119886119901119901(119905) =sum119878119886119901119901(119894) times 119864119886119901119901119861119886119905119905(119894) minus 119863119888119886119901119901
119861119886119905119905(119894)
119894le119905
3
27 References 4
[1] Ramon et al 2011 Eurostat Reference And Management Of Nomenclatures PRODCOM 5
List 2011 6
[2] Eurostat Manufactured Goods PRODCOM 7
[3] Fraunhofer Institute for Systems and Innovation Research ISI in-house xEV database 8
[4] Marklines Co L Automotive Industry Portal httpwwwmarklinescom 9
[5] European Alternative Fuels Observatory httpswwweafoeu 10
[6] EV Sales Blog httpev-salesblogspotcom 11
[7] Fraunhofer Institute for Systems and Innovation Research ISI in-house LIB database 12
[8] A Thielmann et al 2016 Energiespeicher-Monitoring 2016 Deutschland auf dem Weg 13
zum Leitmarkt und Leitanbieter (Karlsruhe Fraunhofer Institute for Systems and 14
Innovation Research ISI) 15
[9] European Automobile Manufacturers Association Registration Statistics 16
[10] J Figgener et al 2018 Wissenschaftliches Mess- und Evaluierungsprogramm 17
Solarstromspeicher 20 Jahresbericht 2018 (Institut fuumlr Stromrichtertechnik und 18
Elektrische Antriebe RWTH Aachen) 19
[11] MA Hoehner 2015 Market assessment PV storage EUPD Research 2014 Der globale 20
Speichermarkt - Status QUO und Ausblick (IBESA International Alliance Battery amp 21
Energy Storage) 22
[12] B3 Corporation 2017 Chapter 6 Trends in the ESS Market Chapter 6 17Q3 23
[13] Fraunhofer Institute for Solar Energy Systems ISE 2018 Photovoltaics Report August 24
2018 25
[14] Sandia Corporation Global Energy Storage Database (Office of Electricity Delivery amp 26
Energy Reliability - Department of Energy) 27
[15] European Environment Agency 2018 Energy in Europe mdash State of play 28
httpswwweeaeuropaeudesignaledie-zukunft-der-energie-in-1artikelenergie-in-29
europa-2014-sachstand 30
[16] European Commission Europe 2020 strategy httpseceuropaeuinfobusiness-31
economy-euroeconomic-and-fiscal-policy-coordinationeu-economic-governance-32
monitoring-prevention-correctioneuropean-semesterframeworkeurope-2020-33
strategy_en 34
[17] European Commission 2030 Energy Strategy 35
httpseceuropaeuenergyentopicsenergy-strategy-and-energy-union2030-energy-36
strategy 37
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
54
[18] Avicenne 2013 The Worldwide rechargeable Battery Market 2012ndash2025 June 2013 1
22nd Edition 2
[19] Avicenne 2015 The Rechargeable Battery Market and Main Trends 2014ndash2025 March 3
2015 amp Battery Market Development for Consumer Electronics Automotive and 4
Industrial Materials Requirements and Trends MayJune 2015 5
[20] Avicenne 2017 The Rechargeable Battery Market and Main Trends 2016ndash2025 6
[21] B3 Corporation 2015 Chapter 8 LIB-equipped Vehicle Market Bulletin (15Q4) and Long-7
term LIB Market Forecast 8
[22] B3 Corporation 2016 Chapter 8 LIB-equipped Vehicle Market Bulletin (16Q4) and Long-9
term LIB Market Forecast 10
[23] Claire Curry 2017 Lithium-ion Battery Costs and Market Bloomberg New Energy 11
Finance (Bloomberg New Energy Finance) 12
[24] LuxResearch Transportation and stationary energy storage will overtake consumer 13
electronics as the largest markets for energy storage by 2018 14
httpblogluxresearchinccomblog201707transportation-and-stationary-energy-15
storage-will-overtake-consumer-electronics-as-the-largest-markets-for-energy-storage-16
by-2018 17
[25] Roskill 2017 Company Reports httpwwwees-magazinecomroskill-forecasts-li-ion-18
battery-market-to-reach-223gwh-by-2025 19
[26] Roskill 2017 Company Reports httpswwwwestpaccomaunewsin-20
depth201711carmageddon-may-be-closer-than-think-market-to-reach-223gwh-by-21
2025 22
[27] Michaelis S Maiser E Kampker A Heimes H Lienemann C Wessel S Thielmann A 23
Sauer A and Hettesheimer T VDMA Batterieproduktion Roadmap Batterie-24
Produktionsmittel 2030 Update 2016 (Frankfurt VDMA Verlag GmbH) 25
[28] Thielmann A Megatrends and their impact on the energy future from the perspective of 26
electrochemical storage Electrochemical Storage Materials Supply Processing 27
Recycling and Modeling p 20001 28
[29] European Commission 2011 Roadmap for moving to a low-carbon economy in 2050 29
httpeceuropaeuclimapoliciesroadmapfaq_enhtm 30
[30] A Thielmann et al 2018 Energiespeicher-Monitoring 2018 (Karlsruhe Fraunhofer 31
Institute for Systems and Innovation Research ISI) 32
[31] European Commission 2011 Energy Roadmap 2050 Impact assessment and scenario 33
analysis 34
[32] Oumlko-Institute Wuppertal Institute 2012 Compiled from data provided by DG Energy EC 35
[33] A Thielmann et al 2017 Energiespeicher-Roadmap (update 2017) ndash Hochenergie 36
Batterien 2030+ und Perspektiven zukuumlnftiger Batterietechnologien (Karlsruhe 37
Fraunhofer Institute for Systems and Innovation Research ISI) 38
[34] Thielmann A 2018 Battery Development and Market Demand for Specialty Electric 39
Vehicles (Mainz) 40
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
55
[35] Thielmann A Sauer A Schnell M Isenmann R and Wietschel M 2015 Technologie-1
Roadmap Stationaumlre Energiespeicher 2030 (Karlsruhe Fraunhofer Institute for Systems 2
and Innovation Research ISI) 3
[36] A Thielmann C Neef T Hettesheimer 2018 Cost Development Cost Structure amp Cost 4
Reduction Potentials of Electric Vehicle Batteries 5
[37] Electrive 2018 European Battery Alliance (EBA) is taking shape 6
httpswwwelectrivecom20180225european-battery-alliance-eba-taking-shape 7
[38] S Michaelis et al 2018 Roadmap Batterie-Produktionsmittel 2030 (Frankfurt am Main 8
VDMA Batterieproduktion) 9
[39] PV Magazine 2018 Altmaier will Batteriezellfertigung in Europa httpswwwpv-10
magazinede20180411altmaier-will-batteriezellfertigung-in-europa 11
[40] Electrive 2018 Deutschland und Polen schmieden Batteriezell-Allianz 12
httpswwwelectrivenet20180906deutschland-polen-schmieden-batteriezell-allianz 13
[41] Electrive 2018 Zellfertigung 2 Mrd Euro Foumlrdergeld fuumlr zwei Werke 14
httpswwwelectrivenet20180910zellfertigung-2-mrd-euro-foerdergeld-fuer-zwei-15
werke 16
[42] German parties CDU CSU and SPD 2018 Coalition agreement between CDU CSU and 17
SPD - 19th legislative period 18
httpswwwcdudesystemtdfmediadokumentekoalitionsvertrag_2018pdffile=1 19
[43] Electrive Chinesischer Batteriehersteller CATL errichtet Werk in Thuumlringen 20
httpswwwelectrivenetwp-contentuploads201807Press-Chinesischer-21
Batteriehersteller-CATL-errichtet-Werk-in-Thuumlringepdf 22
[44] Electrive 2018 BYD looking to set up battery factory in Europe 23
httpswwwelectrivecom20180605byd-looking-to-set-up-battery-factory-in-europe 24
[45] Electrive 2018 Farasis schafft Fertigungskapazitaumlten in China und EU 25
httpswwwelectrivenet20180908farasis-schafft-fertigungskapazitaeten-in-china-und-26
eu 27
[46] Electrive 2018 Setzt Jaguar Land Rover auf Rundzellen von Samsung 28
httpswwwelectrivenet20180905setzt-jaguar-land-rover-auf-rundzellen-von-29
samsung 30
[47] Handelsblatt Global 2018 Europersquos plan to create its own Gigafactory might backfire 31
httpsglobalhandelsblattcomcompanieseurope-gigafactory-tesla-auto-vw-mercedes-32
886714 33
[48] Manager Magazin 2018 EU will Milliarden in Gigafactory-Wettlauf stecken 34
httpwwwmanager-magazindeunternehmenautoindustrieelektroauto-wer-baut-35
europas-erste-batterie-gigafactory-a-1174306-6html 36
[49] PushEVs 2018 LG Chem to triple EV battery production in Poland 37
httpspushevscom20180312lg-chem-to-triple-ev-battery-production-in-poland 38
[50] Reuters 2018 Factbox Plans for electric car battery production in Europe 39
httpswwwreuterscomarticleus-autos-batteries-europe-factboxfactbox-plans-for-40
electric-car-battery-production-in-europe-idUSKCN1J10N8 41
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11
Preparatory study on Ecodesign and Energy Labelling of batteries
56
[51] Stiftung Energie amp Klimaschutz 2017 Batterien fuumlr die Elektromobilitaumlt ndash ein Uumlberblick 1
httpswwwenergie-klimaschutzdeueberblick-batterien-elektromobilitaet 2
[52] Nationale Plattform Elektromobilitaumlt NPE Roadmap 2016 3
[53] B3 Corporation 2018 Chapter 11 LIB Material Market Bulletin 18Q1 4
[54] Electrek 2017 Tesla reduces price of the 75 kWh battery upgrade by 22 for some 5
Model S owners httpselectrekco20170113tesla-price-75-kwh-battery-upgrade 6
[55] Centrales Agrar-Rohstoff Marketing- und Energie-Netzwerk 2018 Marktuumlbersicht 7
Batteriespeicher 8
[56] Energieheld Kosten fuumlr PV-Stromspeicher - Wirtschaftlichkeit im Detail 9
httpswwwenergiehelddephotovoltaikstromspeicherkosten 10
11