Why Building an EV Should Not be So Expensive

The following is extracted from Why building an electric car is so expensive, for now.  I have left the article’s points answers to the questions raised intact, and added what Red Sycamore and Quantum Age Holdings Corporation can do with our product. 

1. Why are EV batteries so expensive?

They said:

Largely because of what goes in them.  An EV uses the same rechargeable lithium-ion batteries that are in your laptop or mobile phone, they are just much bigger to enable them to deliver far more energy.  The priciest component in each cell is the cathode, one of the two electrodes that store and release a charge.  That is because the materials needed in cathodes to pack in more energy are often expensive: metals like cobalt, nickel, lithium and manganese.  They need to be mined, processed and converted into high-purity chemical compounds. 

We say:

Our batteries are produced using existing high-volume manufacturing equipment that has been tested and proven for 30 years.  Our batteries have no anode active materials such as graphite, and we are not involved in anode manufacturing.  As such, formation and aging is significantly reduced.  There are no expensive and difficult-to-produce ceramic separators or solid electrolytes.  The additional system-level benefits of our batteries, due to our material science and technologies involved, reduce weight and volume.  This brings down costs significantly, by around 40-50%.  We do not need to use cobalt, copper foil, aluminum foils and such like. 

2. How much are we talking?

They said:

At current rates and pack sizes, the average battery cost for a typical electric vehicle works out to about US$7,350 (S$10,000).  That has come down a lot – 87% over the past decade, according to BloombergNEF.  But the average pack price of US$156 per kilowatt hour (kWh) - from about US$1,183 in 2010 - is still above the US$100 threshold at which the cost of an EV should match a car with an internal-combustion engine.  That would help trigger mass adoption. 

We say:

Our production takes out expensive processing in traditional electrolytes.  Other batteries have solid electrolytes, which are expensive to process and not compatible with the current lithium ion process and equipment.  This is in contrast with our drop-in solution, inexpensive processing.  Our product is non-flammable and biodegradable.  All these manufacturing elements reduces our costs by 32% to 40% compared to any existing producer in the world.  We own our patents so no one is able to replicate that without us being involved. 

3. How will the batteries get cheaper?

They said:

Costs are not expected to keep falling as quickly, but lithium-ion packs are on track to drop to US$93 per kWh by 2024, according to BNEF forecasts.  To get there, one focus for manufacturers is replacing high-cost cobalt with nickel.  That has a double benefit:  Nickel is cheaper and it also holds more energy, allowing manufacturers to reduce the volume needed.  On the other hand, cobalt’s advantage is that it does not overheat or catch fire easily, meaning manufacturers need to make safety adjustments when they use a substitute.  Panasonic in Japan plans to commercialise a cobalt-free version of a high-energy battery in two to three years; other suppliers already produce lower-energy ones.  There is also attention on the battery packs, often resembling oversized suitcases, that house rows of individual cells.  Simplifying the design, and using a standard product for a range of vehicles - rather than a pack tailored to each model - will deliver additional savings. 

We say:

Our G³ Fireshield™ is a non-flammable electrolyte that provides the safety of a solid electrolyte with the performance of a traditional electrolyte.  Our drop-in process reduces costs tremendously.  We do not need to use all the expensive elements used in traditional electrolytes which have high safety concerns and flammability.  Our batteries cost less than $100/kWh, with some customer feedback putting it as a reported less than $85/kWh.  Our energy density is more than 400 Wh/kg; 1000 Wh/L, and uses our G³ Fireshield™. 

4. Who are the biggest manufacturers?

They said:

Asia dominates manufacturing of lithium-ion cells, accounting for more than 80% of existing capacity.  The majority of that might is in China.  Europe is building new factories and will surpass North America in cell manufacturing starting in 2021, according to Wood Mackenzie.  Overall, the Chinese company Contemporary Amperex Technology (CATL) shipped the highest volumes in 2019, including batteries bound for power grids and storage systems.  It is a tighter field in the race to supply automakers, where Panasonic led last year.  South Korea’s LG Chem has surged ahead in 2020, capturing about a quarter of the market in the first eight months, according to SNE Research.  Tesla and Panasonic’s joint venture is the biggest battery producer in the US.  Emerging producers include Northvolt in Sweden, founded by former Tesla executives. 

We say:

G³ is the world’s largest graphene producer.  G³ adheres to strict environmental, health and safety procedures.  Graphene is in a new class of advanced nanomaterials.  As the largest global producer of graphene, G³ honours the challenge to set standards not just for technology but for quality as well.  G³ is ISO-9001:2015 certified for the design, development, manufacture and testing of graphene and graphene-enabled products and thermal management materials.  We deliver world changing, life enhancing and cutting edge technologies through graphene-enabled solutions and products through Quantum Age Holdings Corporation globally. 

5. Are all EV batteries the same?

They said:

Lithium-ion technology has dominated the rechargeable-battery sector since it was commercialised by Sony in 1991.  Improvements to lifespan, power, weight and costs have helped the components leap from camcorders to SUVs, buses, and ferries.  While lithium-ion cells, like all batteries, have the same basic components: two electrodes - a cathode and an anode - and an electrolyte that helps shuttle the charge between them, there are differences in the materials used, and that is key to the amount of energy they hold.  Grid storage systems, or vehicles travelling short distances, can use cheaper and less powerful cathode chemistry that combines lithium, iron and phosphate.  For higher-performance vehicles, automakers favour more energy-dense materials, such as lithium-nickel-manganese-cobalt oxide or lithium-nickel-cobalt-aluminium oxide.  Further refinements are seeking to improve range - how far a vehicle can travel before recharging - as well as charging speed, while also balancing factors like fire-resistance.  Recent battery blazes and vehicle recalls have highlighted safety issues. 

We say:

No.  Our batteries exceed next-generation EV requirements by providing an energy density of 400-500Wh/kg.  Refer to our chart here below on all current major players in the market.

6. How else can costs come down?

They said:

There is the manufacturing process itself and the machinery required.  Tesla has commissioned the largest casting machine ever made that will produce the entire rear section of a car as a single piece of die-cast aluminium.  Integrating the battery with a vehicle chassis could also trim the volume of material used.  Electric motors - which account for as much as a 10^th of a car’s cost - should be about 5% cheaper in the next couple of years with improvements to both materials and the electronics that transmit power between the battery, motor and a vehicle's wheels, BNEF says. 

We say:

Tesla cannot produce the performance of the battery with 400-500Wh/kg at this moment in time.  They have the money but do not own the technology and research development team that QAHC has, nor do they have our partnership with MIT.  We have a deliverable product now, and are already manufacturing for our JV partners in Germany and USA.  Our batteries are already cheaper to manufacture, and with growing economies of scale, that will drop further.  Our base materials is carbon, from plants. 

7. So China is in pole position?

They said:

Yes, in almost every aspect, with some key exceptions.  China is responsible for about 80% of the chemical refining that converts lithium, cobalt and other raw materials into battery ingredients, though the metals themselves are largely mined in Australia, the Democratic Republic of Congo and Chile.  China also dominates processes to make battery parts including capacity for cathodes, anodes, electrolyte solutions and separators, BNEF data shows.  But China faces a rare challenge when it comes to advanced semiconductor design and software, components that are increasingly important as vehicles become more connected and autonomous.  Less than 5% of automotive chips are made in China, according to China EV 100, a think-tank.  For example, major players in so-called insulated-gate bipolar transistors include Infineon Technologies and Semikron in Germany and the Japanese companies Mitsubishi Motors, Fuji Electric and Toshiba.  These high-efficiency switches reduce power loss and improve reliability in electric cars. 

We say:

China does not have the technology in battery management and the intellectual property and patents we own to produce batteries.  Nor are they able to reverse engineer our technology which is black boxed and proprietary.  It is validated at MIT and by different organisations that have independently tested and provided reference and test reports on our performance of our batteries.  In contrast, Quantum Motors has an 80-90% reduction in electronics. 

8. Is cost the only hurdle?

They said:

There is still an issue with driving range.  While the most-expensive EVs can travel 640km or more before a top-up, consumers considering more mainstream models remain anxious about how often they will need to recharge.  Automakers and governments have become directly involved in the roll-out of public recharging infrastructure, conscious of a need to allay fears over not finding an electric pump on the go.  Countries from China to Germany to Canada are building charging stations as part of stimulus measures adopted to combat the coronavirus-induced economic slump.  Millions of units are being fitted on highways, in suburbs and at shopping mall parking lots, but distribution is uneven - more than a quarter of all public connectors in the US are in one state, California - and not all chargers are compatible with every EV model.  Most recharging is expected to take place at home, and that means another cost for consumers, with an average price of about US$1,000 per system. 

We say:

Cost, performance, energy density and life span of the batteries is not found in any current lithium ion battery producer anywhere in the world that matches the performance QAHC’s technology.  Our batteries cost 40% or more less overall.  This value will increase logarithmically over the next 18 to 24 months.  We have a head start of 18-24 months and can commence manufacturing within 30-60 days for new clients. 

9. What is around the corner?

They said:

A host of innovations are seen moving from laboratories to production lines by the end of the decade.  California-based Sila Nanotechnologies is adding silicon into battery anodes in place of graphite to allow a single charge to last at least 20% longer.  Toyota Motor and US start-ups, including QuantumScape, are racing to commercialise solid-state lithium-ion batteries, which overhaul a cell’s architecture to replace the flammable liquids that enable charging and discharging with ceramic, glass or polymers.  That is an advance that advocates claim can boost energy storage, lower costs, improve safety and cut recharging times.  CATL is ready to produce a super long-life battery that lasts 16 years and two million km - a typical battery warranty today covers about 240,000km or eight years.  That means a single pack could be deployed in multiple vehicles or for several different tasks.  As early electric cars retire, there is also a fast-developing sector aimed at reusing batteries for less-strenuous tasks, or recycling the metals within them.  Electric vehicles should account for 10% of regular car sales by 2025 and 58% in 2040, BNEF forecasts. 

We say:

Our batteries can last 1 million miles.  After that, we return to factory and refresh them for another million miles.  We are already producing the batteries in limited quantities for our test and pre-production schedule.  Our manufacturing can commence in 20-30 days from get go.  We will at best be able to deliver by year end to customers.  The closest competitor is QuantumScape Inc. who can only deliver a prototype in Q2 of 2023.  We can deliver by end of Q3 of this year, by commencing production in July 2021 onwards.