Strategies to Optimize the Lithium Battery Value Chain

To meet growing global energy demand, forecasted to rise 50% by 2050 according to the International Energy Agency (IEA), and the projected dominance of electric vehicles (EVs) in the market by 2030, the lithium battery value chain must rapidly evolve. This necessity is underscored by the stark difference in material requirements between conventional and electric cars, highlighting the pressing need for rare metals such as copper, manganese, lithium, cobalt, nickel, and graphite.

The transition towards electric vehicles, expected to comprise over 60% of total vehicle sales worldwide by 2030, necessitates a tenfold expansion in the EV battery value chain to meet critical demands.

Navigating the challenges of a complex supply chain

The entire value chain—from mining and refining to battery production and recycling—is intricate, requiring significant investment and innovation to scale effectively. With the advancement of electric vehicle technology, the battery value chain is now pivotal in the next energy transition. Decarbonization efforts are crucial, as up to 60% of greenhouse gases within electric vehicle production emissions can be generated by battery production, for example.

Adapted from IEA data: Rapid growth in all areas of the lithium battery value chain is projected over the next 15 years. EMERSON

The sector also faces a substantial workforce skills gap, requiring the upskilling of 800,000 workers by 2025 to keep pace with its growth. Over $7 trillion in investments is needed through 2040 to enhance mining, refining, manufacturing and recycling to meet the escalating global EV demand. Addressing these challenges, including dealing with the current meager reuse efforts, with less than 1% of lithium recycled, is critical.

Leveraging technology for efficiency and scalability

Embracing sustainability and addressing the comprehensive challenges of accelerating project timelines and managing value chain complexity are vital. The industry must innovate and scale projects efficiently to achieve economies of scale by balancing high production costs to stay ahead of the innovation curve. Strategic partnerships and the integration of robust technology platforms will enable stakeholders to optimize design, construction and operations, fostering a smarter, scalable and more efficient lithium battery value chain.

Optimizing capital expenditures amidst volatile markets and complex supply chains, implementing strategic automation, leveraging scalable technology platforms, and installing digital solutions will all be needed. These measures will help minimize operating costs while managing change more effectively, ensuring faster design cycles and improved time-to-market. Advanced process control technologies will also be needed to facilitate streamlined process modeling and economic analysis, enhancing sustainability performance.

Flexibility in engineered design is paramount as the lithium battery value chain evolves. Solutions like electronic marshalling and software-defined automation systems offer cost-effective alternatives to accommodate late design changes, ensuring efficient project execution. The emphasis on reducing startup time, through smart commissioning and virtual factory acceptance tests, aligns with the goal of maintaining competitiveness by mitigating commissioning and startup challenges.

The path to smarter mines and refineries

The path to smarter mines and refining processes involves integrating intelligent field devices, connected controls and analytics to future-proof operations. This includes optimizing asset utilization and reducing downtime through prescriptive maintenance and predictive analytics, enhancing uptime and productivity.

For smarter production, real-time insights into processes can be achieved through a scalable portfolio of automation technologies, which will provide improved connectivity and other advantages, leading to more optimized and sustainable operations. Advanced process models can be used to analyze the contextualized data provided by these technologies, providing up to 5% production increase, 10% energy reduction, and 3% yield improvement by maintaining optimal operating conditions.

To achieve scalability, the integration of seamless, digital-ready solutions is vital for improving the speed and flexibility of operations throughout the lithium battery value chain. Emphasizing the importance of scalable, plant-level automation, the right technology platforms will aid in transitioning from pilot to full-scale production. Solutions like advanced distributed control systems, coupled with advanced programmable logic controllers, will provide high availability and complete plant-level automation, optimizing designs for scalability.

Addressing the talent gap with digital solutions enhances workforce capabilities, preparing staff to better leverage technological advancements. Digital twins and simulators provide dynamic hands-on experience, essential for navigating the fast-paced changes in the lithium battery value chain.

Investing in flexible design to reduce capital expenditures, enhancing production efficiency, and embracing digital transformation are key strategies for scaling the lithium battery value chain. These solutions will collectively drive operating companies towards a more efficient, sustainable, and innovative future, ensuring strategic growth and competitiveness.