【波士頓咨詢】2024賦能未來戰(zhàn)略性電池采購助力純電動汽車BEV的可持續(xù)發(fā)展報告

WHITEPAPER

PoweringtheFuture

UnlockingBatteryElectricVehicleSustainabilityThroughStrategicBatterySourcing

November2024

byNicoleVoigt|JohannaPütz|NicolasMeyer|NathanNiese|TimmLux|MaraKronauer

BostonConsultingGrouppartnerswithleaders

inbusinessandsocietytotackletheirmost

importantchallengesandcapturetheirgreatest

opportunities.BCGwasthepioneerinbusiness

strategywhenitwasfoundedin1963.Today,

weworkcloselywithclientstoembracea

transformationalapproachaimedatbenefitingallstakeholders—empoweringorganizationstogrow,buildsustainablecompetitiveadvantage,and

drivepositivesocietalimpact.

Ourdiverse,globalteamsbringdeepindustryandfunctionalexpertiseandarangeofperspectives

thatquestionthestatusquoandsparkchange.

BCGdeliverssolutionsthroughleading-edge

managementconsulting,technologyanddesign,andcorporateanddigitalventures.Weworkinauniquelycollaborativemodelacrossthefirmandthroughoutalllevelsoftheclientorganization,

fueledbythegoalofhelpingourclientsthriveandenablingthemtomaketheworldabetterplace.

Content

02Introduction

04Batterytypes:howtheydifferandwhywefocusonLFPandNMC811

08Emissionsdrivers:batteryactivematerialasmajorcontributortomanu-

facturingemissions

10Decarbonizationlevers:

twokeyleverstophysicallydecarbonizeactive

materials

18Implications

fordecision-makers

20AbouttheAuthors

12Measuringtheimpact:

CO?emissionsinprimary

sourcingandrecycling

15Bringingittogether:

emissionsreduction

potentialdependson

sourcingandbatterytype

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING1

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING2

Introduction

Asnationsstrivetoreduceemissions,transitioningfrominternalcombustionengine(ICE)vehiclestoelectricvehicles(EVs)isessential.

EVsofferclearenvironmentalbenefitsoverICEvehicles,duetotheirloweroperatingemissions,particularlywhenpoweredbyrenewableenergy.

However,theemissionsassociatedwithEVbatteryproductionareanurgentconcern,because

whiletheydonotunderminetheoverallsustainabilityofEVs,theyclearlypresentanopportunityforfurthertransparencyandimprovement.Onlybyunderstandingthesourcesofemissionsin

batteryproductionaswellasbatterymaterialproductioncandecision-makersexplorewaysto

reducethem.

Ourfocusisontractionbatteries,whichpowerthevehicle'selectricmotorandareoneofthelargestcontributorstoemissionsinEVproduction.Emissionssourcedfromraw(battery)materialsforthemaccountformorethanathirdofthetotalCO?equivalent(CO?e)ofanaverageBatteryElectricVehi-cle(BEV).Inaddition,theCO?eemissionsofaBEVarenearlydoublethoseofanICEvehicleduetothehigherraw-materialrequirements,basedontheaveragebatteryproductioninAsia,nottaking

greengridimpactintoconsideration.Becausethechoicesofrawbatterymaterials—includingtheirextractionandprocessing—occurearlyinthesupplychain,beforetheproductreachesthemanufac-turer,thesedecisionshaveasizeableimpactonscope3upstreamemissions.

Exhibit1|Productionemissiondependingonbatterytype

BatteryActiveMaterials(BAM)

ShareofCO2eemissions

ICE

SteelAlu

tCO2

Cu

Other

BEV

16%

LithiumGraphiteIron

phosphate

19%

6%

Lithium

14%

Cobalt

ManganeseNickel

50%

Graphite

Battery

ShareofCO2eemissions

Non-activematerials

Assembly

Non-activematerials

Assembly

Vehicle

5%

45%1.750%

16%9%

9.1

tCO2

ShareofCO2eemissions

NMC

811

25%

1%

Battery

60%(13.6)

Battery

27%

(4.6)

66%

(9.1)

BAM

BAM

16.8

tCO2

4.6

tCO2

13.6

tCO2

22.5tCO2

42%8.2

LFP

37%

32%

39%

29%

15%

24%

20%

20%

12%

8%

6%

5%

Note:Outsideinview

Source:BCGanalysis

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING3

Thus,ateverystopalongthesupplychain—frommaterialsminersandproducerstometaland

batteryrecyclers,batterymanufacturers,andEVmakers—companiesmustfocusonunderstand-ingtheemissions,thesupply-demandprofileandtherelativecostprofileofdifferentsourcing

optionstounderstandthetradeoffsandsetuptheirsupplychainsaccordinglyandleveragebothgreenprimarysourcingandrecycling.Ensuringaccesstosupplyfromlow-emissionsproduction

routes,expandingrecyclingfacilities,andsecuringsecondarymaterialssuchasend-of-life(EOL)

batteriesareallcriticaltolong-termsustainabilityandmaintainingacompetitiveadvantage.By

balancingbothrecyclingandsustainableprimarysourcingtomeetfuturedemandwhileminimiz-ingenvironmentalimpact,companiescansignificantlyreducetheircarbonfootprintandcontrib-utetoamoresustainablefuture.

Thefollowingparagraphsbrieflyhighlightthispaper'skeyinsights:

?Batterytypes:Wefocusonthetwomostcommonbatterytypes,NMC811andLFP,namedforthe8:1:1ratioofnickel,manganeseandcobaltusedinthecathodeandtheuseoflithium,iron,andphosphate,respectively.NMCbatteriestypicallyallowforfasterchargingandgreaterrangebystoringmoreenergyinasmallerspace,buttheyarecostlierandhavehighermanufacturingemissionsthanLFPbatteries.ThelowerenergydensityofLFPbatteriesmeanstheyweighmoreforthesamedistance,andthereforeBEVsusingLFPbatterieshavealowerrangecomparedtothosewithNMCs.

?Emissionsdrivers:Batteryactivematerials(BAM),suchasnickel,manganese,cobalt,lithiumandgraphite,storeandreleaseenergyinabattery—theyarethekeytechnologycomponent

ofthebattery.ForNMCbatteries,thesematerialsareresponsiblefor60–70%ofthetotalCO?eproductionemissionsperkWh,comparedto35%forLFPbatteries.WhiledecarbonizingBAMiscrucialtoreducingemissionswithoutcompromisingbatteryperformance,decarbonizingothermaterials,giventheirconsiderableshareparticularlyinLFPbatteries,mustalsobeconsidered.

?Decarbonizationlevers:WeconsidertwokeyleverstodecarbonizeBAM:primary(sourcing

greenprimarymaterials)andsecondary(recycling).Greenbatteryproductionrequiresboth,astheavailabilityofgreenprimaryandsecondarymaterialsandcapacitymaybelimitedinthefuture.

?Impactofsourcinglever("primarylever"):GreensourcingofBAMcansignificantlyre-

duceemissions.ForNMCbatteries,themostemission-intensivesourcingmethods(grey/blacksourcing)produceabout180kgCO?eperkWh,versus~70kgCO?eperkWhforgreensourcing,areductionofabout60%.ForLFPbatteries,usinggrey/blackmaterialscreatesapproximately

85kgCO?eperkWh,versusabout30%to~60kgCO?eperkWhforgreensourcing.Forindi-

vidualmaterials,emissionsreductionsof>90%arepossiblecomparedtogrey/blacksourcing.WhileBAM'sprimaryemissionsreductionpotentialissignificant,thelimitedsupplyofgreenmaterialsandintensecompetitionforthemmakereducinggraymaterialemissionsbyimple-mentingESG-compliantstrategiesessential—thoughthiswillbemoreachievableforcertaingraysourcesthanothers,giventhebroadrangeofgraysourcingavailable.

?Impactofrecyclinglever("secondarylever"):RecyclingisthelowestCO?eoptionforsome

BAMmaterialsandplaysakeyroleinemissionsreduction,thoughnotalwaysmatchingthereduc-tionpossiblewithsustainableprimarysourcing.Whileexpectedtocontributeonly10%–20%of

totalBAMsupplyby2030,thescarcityofgreenprimaryandsecondaryBAMmakesrecyclinga

necessity.Inaddition,itavoidsmining-relatedconcerns,helpsmeetrecyclingtargetslikethosesetbytheEuropeanUnion,andreducessupply-chainrisks.Comparedtogrey/blacksourcing,which

resultsin~180kgCO?perkWhforNMC811batteriesand~85kgCO?perkWhforLFPbatteries,

recyclingcanreduceemissionsbyupto~50%forNMC811andupto~25%forLFP.Newerrecyclingtechnologiescurrentlyinindustrializationstagepromiseafurtheremissionreductionpotential.

CO2e

Toexaminethecarbonfootprintofvehicles,weuseCO?equivalent(CO?e)asastandardunittomeasuretheimpactofdifferentgreenhousegasesonglobalwarming.Becausegreenhousegasessuchasmethane(CH?)andnitrous

oxide(N?O)trapheatintheatmospheretodifferentdegrees,CO?eallowsustoexpresstheirimpactonglobalwarminginacommonunit(CO?).

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING4

Batterytypes:howtheydifferandwhywefocusonLFPandNMC811

Lithium-ionbatteriesarethemostwidelyusedenergystoragesystems

inelectricvehicles,differingmainlyintheirchemicalcomposition,whichaffectstheirperformance,cost,andenvironmentalimpact.

Forourstudy,wefocusonNickelManganeseCobalt(NMC811)—namedforthe8:1:1ratio

ofnickel,manganeseandcobaltused—andLithiumIronPhosphate(LFP),whichdiffer

incost,weight,andCO?eemissions(seeExhibit2,representingtheaverageproductioninAsia).

NMC811batteriesareknownfortheirhighenergydensity,storing265–290Wh/kgatthecell

level.Atthebatterylevel,includingcasingandcoolingsystems,theyweighbetween6.2kgand7.2kgperkWh.A500kgNMC811batterycandeliver75kWh,significantlymorethanacomparable

LFPbattery,whichprovides55kWh.ThismakesNMC811idealforhigh-performanceEVswherespaceandweightarecritical.However,NMC811batteriesarecostlierataround$100perkWh,approx.doublethatofLFPbatteries,andcanhavemorethantwicetheenvironmentalimpact.

LithiumIronPhosphate(LFP)batteriesareknownfortheirlongcyclelifeandstrongsafetyprofileduetoalowerriskofthermalrunaway,whichcausesabatterytocatchfire.However,theirlower

energydensity(160–200Wh/kg)requiresthemtobelargerorheavier,at8.6to9.6kgperkWh,

comparedtoNMC811batteries.LFPbatteriesaremorecost-effective,withpricesdroppingto$50

perkWhin2024,abouthalfthecostofNMC811batteries,becausetheydonotrelyonscarcemate-rialslikecobaltandhaveseenanincreaseinproductionscale.Additionally,LFPbatteries,generatingsignificantlylowerCO?emissions,areamoreenvironmentallyfriendlyoption.However,recycling

remainschallengingduetotheabsenceofvaluablematerialsforrecoverybesidelithiumandlowpricesfornewLFPbatteries.

Exhibit2|PopularNMC811andLFPbatteriesdifferincost,weightandCO?emissions

Cost1in$perkWh

Density2inWhperkg

Weight3inkgperkWh

Emissions4inkgCO2eperkWh

八

NMC811battery

~100

265–290

6.2–7.2

~180

LFPbattery

~50

160–200

8.6–9.6

~85

1BasedonaveragebatterycellpricesinAsia2Densityatcelllevel3Batteryweightatpacklevelof500kg,NMCbattery75kWh,LFPbattery55kWh;Celllevelandpacklevelisnotcomparable,aspacklevelincludesadditionalmaterialsuch

ascasing,coolingsystem,etc.;Therefore,thenumbersforweightanddensitycannotbematched4Consideringrawmaterialsourcingfromthemostcarbonintensivealternatives;Source:ConferenceofMetallurgists(COM)2024

Source:BCGanalysis

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING5

Furtherbatterytypes(outofscopeofthispaper)

InadditiontothemostcommonLFPandNMCbatteries,thereareothertypesoflithium-ionbatteriesthatarenotthefocusinthispaper:

NickelCobaltAluminum(NCA)batteriesNickelCobaltAluminum(NCA)batteriesconsistofnickel,cobalt,and

aluminum,andarevaluedfortheirhighenergydensityandlonglives.Theadditionofaluminumimprovesthestabilityofthebatteryandincreasesitsoveralllife.NCAbatteriesareprimarilyusedbycompaniessuchasTesla,especiallyinhigher-performancevehicles,duetotheirhighenergydensityatarelativelylowweight.However,likeNMCbatteries,

theyareexpensivetoproduceduetothecostofnickelandcobalt.

LithiumManganeseOxide(LMO)batteriesaremadefromlithiummanganeseoxideandarecharacterizedbytheirthermalstabilityandsafety.Thespinelstructureofmanganeseoxideallowsforfastcharginganddischarging,making

LMObatteriessuitableforpowertoolsandelectricvehicles.However,LMObatterieshavealowerenergydensityandashorterlifethanotherlithium-ionbatteries,whichlimitstheiruseinapplicationswherelong-termenergystorageiscritical.

LithiumCobaltOxide(LCO)batteriesaremadeoflithiumcobaltoxideandarecommonlyusedinconsumerelec-

tronicssuchassmartphones,laptops,andcameras.LCObatteriesofferhighenergydensity,whichallowsforcompact

batterysizesinportabledevices.However,theyhavearelativelyshortlifespanandarepronetothermalinstability,

whichcanleadtosafetyconcernsifnotmanagedproperly.Thehighcostandethicalconcernsassociatedwiththesourc-ingofcobaltarealsochallenges.

Solid-statebatteriesareanemergingtechnologythatreplacestheliquidorgelelectrolytefoundintraditionallithi-um-ionbatterieswithasolidelectrolyte.Thisdesignpromisesseveraladvantages,includinghigherenergydensity,im-provedsafety,andlongerlife.Solid-statebatteriesarestillinthedevelopmentstage,buttheyhavesignificantpotentialforfutureapplicationsinelectricvehiclesandportableelectronics,wheretheycouldofferimprovedperformanceandsafetyovercurrentbatterytechnologies.

Materialvs.batteryemissions

Inthisstudy,weusetwounitstotalkaboutemissions:

1.CO?eperkgwhentalkingabouttheemissionsofabatteryactivematerial(BAM)

2.CO?eperkWhwhentalkingaboutemissionsfromafinishedbattery

BAMemissions:AsBAMistypicallysourcedbyweight,thispaperusesCO?eperkgofBAMastheunitofmeasure-menttoreflectcommonsourcingpracticesinbatteryproduction.

Batteryemissions:TheoverallemissionsimpactofbatteriesismeasuredinkgCO?eperkWhtoplaceemissionsinthecontextoftheend-useofthematerials,suchasinEVs.ForEVs,batteriesaretypicallysizedbypowercapacity,e.g.,anenduserwouldbuyaBEVwitha50kWhbattery.

Linkingthetwoemissions:TheCO?emissionsperkWharecalculatedbyfirstdeterminingtheamount(inkg)of

eachmetalrequiredtoproduce1kWhofbatterycapacityforbothLFPandNMC811batteries.Thematerialcomposi-tionisbasedonthereportedbillofmaterialsandstoichiometriccalculationsforthesebatterytypes.TheCO?emis-sionsperkWharethencalculatedbymultiplyingtheCO?eemissionsperkgofeachmetalbytheamountofthat

metalrequiredtoproduce1kWhofbatterycapacity.

Examplecalculation:ExhibitAandExhibitBillustratehowCO?emissionsforBAMwerecalculated,withtheexampleofBAMforgrey/blackprimarysourcingforNMC811andLFPbatteries.Thesamecalculationmethodisusedforallsourcingroutes.

ToestimatetheemissionsofafullEVbattery,therespectivebatterypowerwouldbemultipliedbytheCO?eemissionsperunitofpower,i.e.,kWh:

TotalCO?eEmissionsofanEVbattery:AssumingtheenduserwantstopurchaseaBEVwitha50kWhNMC811battery,thetotalemissionswouldbe181.7kgCO?eperkWh×50kWh=9,085kgCO?eperbattery

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING6

Materialvs.batteryemissions(cont.)

ExhibitA|ExamplecalculationofCO?emissionsforNMC811grey/blacksourcing

1.1

CO2emissionsinkgCO2e/kWh

11.1

29.6

60.1

18.8

Requiredmaterialinkg/kWh2

CO2emissions

5.1

0.2

×

=

18.5

0.6

×

=

80.6

0.4

×

=

2.8

21.9

×

=

9.6

2.0

×

=

inkgCO2eq/kgmaterial1

Manganese

Lithium-Hydroxide

Cobalt

Nickel

Graphite

NMC811BAMfor100%

grey/blacksourcing

1Emissionfornickelandcobaltadjustedtoreflectthebatterychemicals,sincetheunitreferenceinliteratureandcompanyreportsgivenaskgmetalinbatterychemical

2.Assumptionsof75kWhbatterywithenergydensity290Wh/kg

Source:LCAsfromacademicstudiesorcompanywebsites,BOMfromacademicstudiesandArgonneLabcalculations,BCGExperts

ExhibitB|ExamplecalculationofCO?emissionsforLFPgrey/blacksourcing

CO2emissionsinkgCO2e/kWh

15.4

13.9

LFPBAMfor100%grey/blacksourcing

Requiredmaterialinkg/kWh2

CO2emissions

inkgCO2eq/kgmaterial1

=31.6×0.5

=9.2×1.5

Lithium-Carbonate

Graphite

1Assumptionsof55kWhbatterywithenergydensity200Wh/kg

Source:LCAsfromacademicstudiesorcompanywebsites,BOMfromacademicstudiesandArgonneLabcalculations,BCGExperts

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING7

MoredetailsontheBAMemissionsestimationfortheinterestedreader

TheenvironmentalimpactofbatterymaterialsisassessedintermsofkgCO?eperkgofmetalorcompound.Thebreakdownforthespecificmaterialsisasfollows:

Nickel(Ni)andCobalt(Co):TheenvironmentalimpactofnickelandcobaltisquantifiedbymeasuringtheCO?

emissions(expressedinkgCO?e)perkgofnickelorcobaltcontainedintheirrespectivecompounds,nickelsulfate(NiSO?·6H?O)andcobaltsulfate(CoSO?·7H?O).Thisapproachprovidesanaccuraterepresentationofthe"active"

metalcontentwithinthesecompounds,consistentwithcommonindustrypracticesandmethodologicalstandards.

Itisimportanttonotethatwhilethismethodisaccurate,theCO?valuesmustbenormalizedtoreflecttheemissionsassociatedwiththeentirecompound,notjustthepuremetal.Asaresult,theremaybevariationsinthecalculated

emissionsperkWhwhenappliedtotheoverallbatteryproduction.

Lithium(Li),Manganese(Mn),andGraphite(C):TheassessmentismadeinkgCO?eperkgofLi?CO?,LiOH·H?O,HPMSM(HighPurityManganeseSulfateMonohydrate),orgraphite.Thisapproachisemployedbecausethesemateri-alsaretypicallyuseddirectlyintheircompoundforms,makingtheenvironmentalimpactoftheentirecompound

morerelevant.

Thus,bymeasuringkgCO?eperkgofmetalorcompound,wecanfairlycomparetheenvironmentalimpactoftheactualmetalcontentofdifferentmetals.

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING8

Emissionsdrivers:batteryactivematerialasmajorcontributor

tomanufacturingemissions

Themainbatteryactivematerialsarelithium,nickel,cobalt,manganese,iron,phosphate,andgraphite.

Onthecathodeside,NMCbatteriesuselithium,nickel,manganese,andcobalt,whileLFPbatteriesuselithium,iron,andphosphate.Forbothtypesofbatteries,theanodesidetypicallyusesgraphiteandanelectrolytecontaininglithiumtotransferelectronsduringcharginganddischarging.The

currentflowsthroughcopper(anode)andaluminum(cathode)foils,fromthebatteryintotheelec-triccircuitoftheEVorintotheotherdirectionwhenrecharged.

Reducingemissionsinbatteryproductiondependslargelyonfivekeymaterials—lithium(Li),nickel

(Ni),cobalt(Co),manganese(Mn),andgraphite,whicharethemaincontributorstoemissionsdueto

energy-intensiveextractionandprocessing.Othermaterialslikecopperandaluminumdonotaffect

batterychemistry,andironandphosphatehavelowercarbonfootprintsandlimitedrecyclingpotential.

Decarbonizingthesekeymaterialscanreduceemissionsconsiderably,especiallyinNMC811batter-ies,whereactivematerialsaccountfor66%ofemissions.A75kWhNMC811batteryhasacarbon

footprintofapproximately180kgCO?eperkWh,duetotherelianceonnickelandcobalt,whicharemorecarbon-intensivetomineandprocess.LFPbatterieshaveover50%loweremissionsthan

NMC811,around85kgCO?eperkWhfora55-kWhbattery.LFPbatterieshavealowerfootprintduetotheuseofmoreabundant,lower-emissionmaterialslikeironphosphate,whichkeepsemissionsfromBAMtoonly35%oftotalbatteryemissions(seeExhibit3).

Exhibit3|LFPbatterieshavea~50%lowerCO?footprintthanNMC811batteries

Manganese

Lithium-HydroxideLithium-Carbonate

Cobalt

Nickel

Graphite

84.1

15.4

Steel

13.9

1.4

2.14.01.6

15.8

14.2

9.5

Othermaterials

20.0

NMC811LFP

66%shareoftotalbatteryemissionsinkgand%

PlasticCopper

IronPhosphateAluminium

Furtherbattery

material-kept

constantin

analysis

Batteryactivematerial

–focusofthispaper

Batterymanufacturingprocess

18.8

1.63.8

15.0

181.711.1

29.6

InkgCO2eperkWh

~12066%

~6034%

~29

35%

~55

65%

-54%

60.1

25.0

1.8

1.1

~120

Assumptions:1)EmissionssourcedfromCAMproductionandbatteryassemblyisassumedas20kgCO?/kWhforLFPand25kgCO?/kWhforNMC811.

2)20%materiallossisassumedduringCAMproduction.3)Powerofbatteriesassumedas75kWhforNMC811and55kWhforLFPbattery.Source:Literaturereview;companywebsites;Cylib;Abdelbakyet.Al;BCGAnalysis

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING9

DetailsontheNMC811andLFPBAM

NMC811battery

TheNMC811batterywasselectedbecauseofitshighenergydensity,whichmeansthebatterycanstorealargeamountofenergyrelativetoitsweight.

Lithiumhydroxide(LiOH?H?O)alsoplaysanimportantroleintheNMC811battery.Lithiumhydroxide(LiOH.H?O),asopposedtolithiumcarbonateforLFPbatteries,ispreferredforthemorepowerfulNMCbattery.Thischoiceallowsforamorestableandhigher-capacitycrystalstructureinthecathode,whichiskeytoachievingthehighenergydensityandlonglifethatNMC811batteriesareknownfor.

Nickelsulfate(NiSO?·6H?O)playsanimportantroleinincreasingtheenergydensityofthebattery.InNMC811

batteries,nickelmakesup80%ofthecathode,allowingthebatterytostoremoreenergywithoutincreasingitssizeorweight.Thisisespeciallyimportantforelectricvehicles,whichrequirepowerfulbatterieswithoutcompromisingonspace.Inaddition,usingmorenickelreducestheneedforcobalt,whichismoreexpensiveandhassupplychain(ethical)challenges.

Cobaltsulfate(CoSO?·7H?O)isaddedtostabilizethebatterychemistryforbetterenergydensityandalongerlife.However,thereisgrowingpressuretoreduceoreveneliminatecobaltfromcathodesduetosourcingconcerns,as

mostcobaltisminedintheDemocraticRepublicofCongo(DRC)andrefinedinChina.In2020,69%ofcobaltwas

minedintheDRC,and67%ofbattery-gradecobaltsulfatewasrefinedinChina.1ThisconcentratedroutemayfacedisruptionsduetoconcernsoverartisanalminingpracticesintheDRCandtherisksassociatedwithheavyrelianceonChinaamidtradetensions.Artisanalminingreferstosmall-scale,ofteninformalminingpracticeswhereworkersextractcobaltinhazardousconditionswithlittletonosafetymeasures.

Manganesesulfate(MnSO4·H?O)contributestothestabilityandsafetyofthebattery.Ithelpsimprovethethermalstabilityofthebattery,reducingtheriskofoverheatingandextendingbatterylife.Manganeseismoreabundantandlessexpensivethancobalt,whichhelpskeepproductioncostsdownwhilemaintainingbatteryperformance.

Graphite(C)isusedastheanodematerial,asinLFPbatteries.Itisessentialforstoringandreleasinglithiumionsduringthebattery'schargeanddischargecycles.Withoutgraphite,theNMC811batterywouldnotbeabletoachievetheefficiencyandreliabilityrequiredfordemandingapplicationssuchaselectricvehicles,whereconsistentperfor-

manceovermanychargecyclesiscritical.

LFPBattery

LFPbatteriesareasmartchoiceforthoselookingtobalancecost,durability,andenvironmentalsustainability.Theyofferreliableperformanceusingbatteryactivematerialsthatareeasiertosourceandmoreaffordable,makingthemsuitableforawiderangeofapplications.

Lithiumcarbonate(Li?CO?)isthekeyingredientinLFPbatteries.Itisresponsibleforstoringandreleasingenergy,allowingthebatterytoefficientlypowerdevicesandvehicles.LFPbatteriesspecificallyuselithiumcarbonate(Li2CO3),whichisessentialformakingthebattery'scathode—thepartofthebatterythathelpsmanagetheflowofenergy.Thepurityandavailabilityofthislithiumcompoundiscriticalbecauseitdirectlyaffectshowwellandconsistentlythe

batteryperformsandhowlongitlasts.

Graphite(C)servesastheprimarymaterialforthebattery'sanode,thepartwherelithiumionsarestoredwhenthebatteryisnotinuse.Graphite'slayeredstructureallowsittoeffectivelystoretheseionsandreleasethemwhenneed-ed,contributingtothebattery'sstabilityandensuringsmoothoperationovertime.

1Das,J.;Kleiman,A.;Rehman,A.U.;Verma,R.;Young,M.H."TheCobaltSupplyChainandEnvironmentalLifeCycleImpactsofLithium-IonBatteryEnergyStorageSystems,"Sustainability2024,16,1910.

/10.3390/su16051910

BOSTONCONSULTINGGROUP|POWERINGTHEFUTURE:UNLOCKINGBATTERYELECTRICVEHICLESUSTAINABILITYTHROUGHSTRATEGICBATTERYSOURCING10

Decarbonizationlevers:twokeyleverstophysicallydecarbonizeactivematerials

BothLFPandNMC811batteriesrequiresignificantamountsofrawmaterialsforbatteryactivecomponents.

Theextractionandprocessingofthesematerialsisenergy-intensiveandresultsinsignificant

carbonemissions.Theseemissionscanbereducedeitherbymakingthemanufacturingprocessitselfmoresustainable(physicallygreen),byrecycling,orbybalancingemissionsthroughcarbonaccountingmethods.Thispaperfocusesonlyonthefirsttwoapproaches—analyzingmoresus-tainablesourcingoptionsforproductionandrecyclingmaterials—becausetheydirectlyad