The global electric vehicle market has begun to show signs of saturation, affecting the battery supply chain. According to a report from Korean media Maeil Business, in response to the downturn in battery demand, South Korea’s SK Group holding company, SK Innovation, intends to sell its subsidiary SK IE Technology (SKIET) to raise funds and strengthen its financial position.

The report cited sources, indicating that SK Innovation is actively seeking investors for capital injection and has begun negotiations. Additionally, the possibility of selling its battery material subsidiary, SKIET, may not be ruled out as a consideration to obtain cash for flexible use, in response to the shrinking appetite in the battery market.

As per a report from MoneyDJ, SK Innovation holds a 61.2% stake in SKIET, valued at KRW 2.5 trillion (approximately USD 1.8 billion).

Industry sources further pointed out that SK Innovation’s decision to sell SKIET is primarily driven by the need for additional funds to expand its electric vehicle battery business under SK On, including the expansion of its battery factories in the United States, according to the aforementioned reports.

Reportedly, SK On anticipates capital expenditures of KRW 7.5 trillion this year. However, the sources believe that whether SK Innovation can find a buyer for SKIET remains to be seen, given SKIET’s poor performance.

SK On’s clients include well-known automakers such as Ford, Volkswagen, and Hyundai. However, in a high-interest-rate environment, global electric vehicle sales have stalled, leading SK On to incur a significant operating loss of KRW 332 billion in the first quarter, far exceeding the KRW 18.6 billion loss in the previous quarter.

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• [News] Chip to be the Game Changer in EV Market, Battery Becomes the Past

(Photo credit: SK Innovation)

On April 24, Horizon Robotics, a Chinese autonomous driving solution provider,  officially released six chips of Horizon Journey™ 6 series, supporting low, medium, and high-scale intelligent driving applications. Among them, the Journey 6E/M chips feature computing power of 80 TOPS and 128 TOPS respectively; while the Journey 6P chip is suitable for intelligent driving in all scenarios, with a computing power of up to 560 TOPS.

The first cooperative auto companies and brands for the Journey 6 series chips include SAIC Moto, Volkswagen Group, BYD, Li Auto, GAC Group, Deepal, BAIC Group, Chery Auto, EXEED, VOYAH, as well as multiple Tier1, software, and hardware partners. Horizon stated that the Journey 6 series will start delivery of the first mass-produced model within 2024 and is expected to achieve mass delivery of over 10 models by 2025.

BYD’s director Mr. Wang Chuanfu made a surprise presence at the product launch. Assuming the development of new energy industry is a game, Wang thought that the first half of this game focused on electrification, and the second half will be on intelligence. If the first half is about batteries, then the second half will be chips.

It is reported that as early as 2021, BYD and Horizon had established a strategic cooperation relationship, and millions of BYD vehicles have been equipped with Horizon’s Journey 2, 3, and 5 series chips in 2024. As BYD will continue to integrate Horizon Journey 6 chips into its automobiles, the two parties will promote the popularization of advanced intelligent driving by deepening collaboration.

Amid the development trend of electrification and intelligence in automotive industry, intelligent driving chips will embrace vast growth. As to manufacturers, representatives from abroad include Tesla, NVIDIA, Mobileye, Qualcomm, and AMD, while Chinese manufacturers include Horizon, Black Sesame, and others.

Meanwhile, the research and production of intelligent driving chips also face technological and performance challenges. Due to the characteristics of automotive chips, intelligent driving chips are required to meet high stability and long lifespan under extreme conditions.

In addition, with the continuous development of autonomous driving technology, the performance and computing power requirements for intelligent driving chips are also constantly increasing, which requires chip manufacturers to pursue further innovation and breakthroughs in the future.

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• [Insights] China’s Position in EV Battery Market to be Shaken as the Mass Production Race of All-Solid-State Battery Industry Speeds up?
• [News] China’s New Energy Vehicle Penetration Rate Exceeds 40%, Expected Optimistic Growth by 2024

(Photo credit: Pixabay)

• With the Ongoing Expansion of Global EV Battery Market, China’s Dominant Position Steadily Strengthens

In recent years, the rapid growth of EV and energy storage markets has driven robust demand for lithium-ion batteries (LiBs). Data shows that in 2023, the total shipment of LiBs exceeded 1 terawatt-hour (TWh) for the first time, with the market size growing more than tenfold compared to 2015, and EV battery shipment accounted for over 70% of the general battery shipment.

As the electric vehicle and energy storage markets continue to grow, the demand for LiBs will enjoy further expansion, with global LiBs shipment expected to outstrip 3,200 GWh by 2027.

Despite the fact that LiB was initially commercialized in Japan in the 1990s and long dominated by Japanese and South Korean manufacturers, over two decades later, China has leapfrogged the two nations. Currently, over 75% of the world’s LiBs are produced in China, marking China’s top position in manufacturing LiB.

Likewise, in the EV battery sector, which accounts for the largest demand in the LiB market, six out of the top ten manufacturers globally are headquartered in China, including CATL, BYD, CALB, Gotion High-Tech, EVE Energy, and Sunwoda, which are expected to hold increasingly higher market shares while the market shares of Japanese and South Korean companies is declining year by year.

For instance, Panasonic’s market share in the EV battery market has dropped to around 6%, and the combined market share of South Korean manufacturers to approximately 23%.

However, with the advancement and breakthroughs in next-generation automotive battery technology—all-solid-state battery (ASSB) technology—the position of traditional liquid-state battery is being challenged.

• Next-Generation Battery Technology Comes to the Fore

On January 3, 2024, PowerCo, a battery subsidiary of Volkswagen, announced that its partner, QuantumScape, had successfully passed its first endurance test on solid-state batteries, achieving over 1,000 charge-discharge cycles while maintaining a capacity of over 95%.

Additionally, in September 2023, another solid-state battery listed company based in the US, Solid Power, announced that its first batch of A-1 solid-state battery samples had been officially delivered to BMW for automotive verification testing. BMW aims to launch its first prototype vehicle based on Solid Power’s solid-state battery technology by 2025.

Last year, Toyota has repeatedly stated its intention to commercialize solid-state battery technology by 2027-2028.

• Does All-Solid-State Battery (ASSB) Technology Truly has the Potential to Overturn Liquid-State Battery Technology?

Traditional liquid-state LiB is primarily composed of cathode and anode electrodes, separator, and electrolyte. The cathode and anode electrode materials play the role of storing lithium, which affects the battery’s energy density, while the electrolyte mainly influences the motion rate of lithium ion during charging and discharging processes, typically using liquid (Organic solvents) as the electrolyte.

However, during the charge-discharge process of traditional liquid-state LiB, side reactions can easily occur on the electrode surface. For example, lithium dendrites formed on the surface of the anode electrode can easily penetrate the separator, causing a short circuit between the cathode and anode electrodes and leading to battery fires.

In addition, the liquid electrolyte is a flammable substance, making liquid-state batteries prone to ignition and explosion under high temperatures or when the battery experiences external impacts that result in a short circuit. Therefore, liquid-state battery faces significant challenges in terms of safety.

Compared to liquid-state LiB, the electrolyte in ASSB is solid, which is less volatile or prone to combustion. Meanwhile, solid-state electrolytes are temperature-stable and less prone to decomposition, rendering them highly safe.

Furthermore, solid-state electrolytes exhibit better stability and mechanical properties, providing superior suppression of lithium dendrites and thereby enhancing battery safety.

On the other hand, traditional liquid-state LiB is limited in their choice of materials due to their narrow electrochemical window and side reactions between the liquid electrolyte and the cathode and anode electrode materials. Solid-state electrolytes, however, offer a wider electrochemical window and fewer side reactions, allowing for a broader range of electrode materials to be used in solid-state battery.

This enables the use of higher energy density active materials. For instance, solid-state battery based on lithium metal anodes can achieve energy densities of over 500 Wh/kg, while liquid-state LiBs can hardly reach this level, with a theoretical energy density limit of 350 Wh/kg. Currently, traditional liquid-state LiBs have approached their theoretical energy density limit, and there’s little room for further improvement.

On top of that, ASSB also boasts better temperature adaptability (-30 to 100°C) and high power characteristic, which can help improve the operating temperature range and fast-charging performance of EV battery.

Meanwhile, as there is no need for liquid electrolytes and separators, the weight of ASSB cells can be reduced. Additionally, processes such as electrolyte filling, degassing, molding, and aging can be removed during the cell assembly process, simplifying the cell manufacturing process. As a whole, given its outstanding performance, ASSB indeed holds the potential to revolutionize liquid-state LiB.

Currently, ASSB, in face of a series of technical challenges, has not yet achieved large-scale production. These challenges include the batch preparation of electrolyte materials, interface stability/side effects between solid materials, as well as the breakthrough of technical hurdles in cell preparation processes, production equipment, and other aspects.

Still, with significant attention and investment from countries worldwide, including Japan, South Korea, Europe, and the US, ASSB has made important progresses and is expected to achieve mass production within 3-5 years.

• Will China be Overtaken in the Market Competition of All-Solid-State Battery?

Currently, ASSB has emerged as the high ground in the competition for next-generation battery technology. The development of ASSB has been listed as a national development strategy by major countries and regions such as Japan, South Korea, the US, and the European Union, and global enterprises are actively making inroads in this field.

Based on different solid electrolyte technical routes, ASSB can be divided into four types: polymer, oxide, halide, and sulfide solid-state batteries. Each of these technology routes has its own advantages and disadvantages. Currently, Japan and South Korea mainly select sulfide as the primary technical route.

In light of the development progress of ASSB in major regions globally, Japan is an early starter in R&D, which takes a lead in the application of patents, and accumulates the most solid-state battery patented technologies worldwide. Japanese companies like Toyota and Nissan have stated their intention to achieve mass production of ASSB around 2028.

In South Korea, major battery manufacturers like Samsung SDI, SK Innovation, and LG Energy Solutions continue to invest in R&D. Samsung SDI completed the construction of a pilot production line (S-line) for ASSBs in 2023 and plans to achieve mass production in 2027.

In the United States, solid-state battery development is primarily led by startups with high innovation potential. Companies like QuantumScape and Solid Power have solid-state battery products in the A-sample stage, while SES’ lithium-metal solid-state batteries have entered the B-sample stage. Other US companies such as Ampcera, Factorial Energy, 24M Technologies, and Ionic Materials have channeled more efforts in solid-state battery technical innovation.

Overall, the period around 2028 is expected to be tipping point for the mass production of ASSB.

Although China is currently the world’s largest manufacturer of LiB, there is still a significant gap between Chinese companies and international ones in terms of patent layout for ASSB.

Additionally, China’s solid-state battery technical routes are diverse, with a focus mainly on semi-solid/state-liquid hybrids, with semi-solid-state battery achieving small-scale production and adoption in vehicles, but investment in ASSB remains insufficient in China, and resources are dispersed. This has led to a significant difference compared to international forerunners.

Therefore, in the future competition for ASSB, companies from Japan, South Korea, Europe, and the US have the opportunity to surpass China and reshape the competitive landscape of future EV battery industry.

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• [News] The US Administration Rumored to Announce USD 7 Billion Grant for Samsung to Boost Chip Capacity
• [News] TSMC Receives USD 6.6 Billion for Chipmaking from the US Government, Commits to Constructing Third Fab

(Photo credit: Pixabay)

The Tokyo Motor Show, which recently opened in Japan, has garnered global attention from the automotive industry, particularly regarding EV technology, seen as the future of the automotive sector. Just like Toyota, a leader in the Japanese automotive industry, Nissan has showcased its ongoing development of Advanced Solid-State Battery (ASSB) technology at the event.

According to Nissan, the ASSB technology promises to provide double the energy density when compared to conventional liquid lithium-ion batteries, representing a significant milestone in battery innovation. Additionally, it is estimated that vehicles equipped with ASSB will experience a substantial reduction in charging times, taking only one-third of the current duration.

This development aims to address one of the fundamental challenges faced by EV users, making longer trips more convenient and practical while enhancing their overall confidence and enjoyment in electric vehicle ownership.

Kazuhiro Doi, Vice President of Nissan’s research division, believes that this technology could propel Nissan’s next generation of electric vehicles to a new level.

What’s particularly intriguing is that sports cars or supercars can utilize smaller and lighter battery packs, thereby improving handling, braking, and acceleration. Furthermore, according to Mydrivers, since ASSB batteries can operate normally in the range of room temperature to 100°C, they do not require a dedicated cooling system.

Currently, the ASSB technology is progressing according to Nissan’s previously announced plan. The first experimental production facility is still scheduled to commence operations next year, and the first mass-produced vehicle model utilizing ASSB technology is still expected to be launched in 2028.

(Photo credit: Nissan’s Facebook)

As the global automotive industry picks up the pace of electrification, there will be a corresponding increase in the demand for nickel, which is a key ingredient for automotive batteries, according to TrendForce’s latest investigations. Incidentally, Indonesia has recently made gradual announcements indicating that it intends to terminate the export of such unprocessed ores as nickel, copper, and tin, and this restriction will likely have an impact on the global supply chains in which these materials are used. Indonesia possesses the world’s highest volume of nickel reserves (which refer to the total availability of nickel in the country), at 21 million tonnes, representing more than 20% of the global total. With regards to nickel production (which refers to the actual amount of nickel that is mined), on the other hand, Indonesia accounts for more than 30% of the global total. As such, Indonesia is the primary source of raw materials for NEV (new energy vehicle) batteries manufactured by countries such as China.

TrendForce further indicates that, as a key upstream material for EV battery manufacturing, nickel is primarily used for raising the energy density of NCM batteries. As EV battery development progresses towards increasingly high energy densities, the direction of cathode development has gradually trended towards nickel-rich NCM as the mainstream. Hence, the consumption of nickel in EV battery cathodes has been undergoing a steady growth.

As the volume of NEV sales increases, so has the installation volume of EV batteries. Take the Chinese automotive market as an example; cumulative NEV sales for the January-July period this year surpassed the annual sales volume for 2020. TrendForce expects annual NEV sales in China to surpass 3.3 million units this year (including both heavy and light vehicles), representing an over 140% YoY growth. Likewise, cumulative EV battery installation in China for the January-October period reached 107.5 GWh, a 168.1% YoY increase, while automotive NCM battery installation reached 54.1 GWh, accounting for 50.3% of the total EV battery installation. These figures would suggest that the growth of the NEV market in China has generated a definite increase in the demand for nickel.

TrendForce believes that the NEV market will continue to expand its demand for battery materials, including primarily nickel, for several reasons: First, the penetration rate of NEVs has been rising at an increasingly rapid pace. Second, EV cathode development has been trending towards a nickel-rich composition. Finally, nickel-rich NCM materials are suitable for fulfilling the automotive market’s demand for high energy density batteries. Indonesia’s decision to terminate the export of certain unprocessed ores may not have an impact on the global supply chains in the short run. However, going forward, this decision will likely transform the supply situation of the nickel industry, force battery manufacturers or nickel chloride suppliers to establish facilities in Indonesia, and eventually raise the added value of products related to the Indonesian nickel industry.

Nevertheless, whether the production capacity generated by the establishment of facilities in Indonesia can satisfy the market demand in time will depend on not only the quality of Indonesia’s infrastructures and electricity supply, but also domestic political environments, availability of labor force, and other external factors. Therefore, TrendForce believes that, in the long run, Indonesia’s export restrictions on raw materials will likely exacerbate the shortage of nickel and subsequently of EV batteries, thereby potentially hindering the rapid advancement of the EV industry.

For more information on reports and market data from TrendForce’s Department of Green Energy Research, please click here, or email Ms. Faye Wang from the Sales Department at fayewang@trendforce.cn