COP29: Batteries are essential to the green shift

SINTEF is participating at COP as an independent observer, committed to advancing sustainable climate and energy solutions. To support this goal, we are providing advice to climate negotiators on 15 key areas with the potential to significantly reduce emissions.

• SINTEF’s  advice for COP29: Technology for a Faster Global Climate Transition

Recommendations for a green battery value chain

• Ensure that battery production has the lowest possible carbon footprint and minimal interference with nature.
• Focus research activities on developing more sustainable Li-ion technology and other battery technologies, as well as recycling.
• Establish international guidelines and certifications for battery production, equivalent to the EU Battery Regulation, with requirements for environmental and climate footprints, information on material origins and proportion of recycled materials used, etc.
• Increase European expertise in battery cell production, and facilitate industrial growth in all stages of a circular value chain.
• Facilitate more research and industrial collaboration across countries.

Problem

Batteries are essential to the green shift, enabling both emission-free transport and increased renewable energy utilisation by allowing energy to be stored during period of high production (solar and wind). Batteries will also play an important role in stabilising the electricity grid, contributing to frequency regulation, load shifting and peak shaving. This can reduce the need for grid expansion and improve the security of supply in rural areas with lower grid capacity. Batteries will also be important for energy storage in microgrids in low- and middle-income countries. In order to be profitable, battery cell production must be established on a large scale, and obtaining sufficient investments is therefore very capital intensive and demanding.

Li-ion batteries currently dominate the market for electric cars, and are also taking increasing shares of the stationary market. Historically, Asia, with China at the forefront, has been responsible for almost all production of Li-ion batteries, as well as materials for battery components. China has also taken the lead in the production of new battery technologies, such as Na-ion batteries. It is challenging for Europe to compete with Chinese manufacturers as Chinese-made batteries have a significantly lower price than equivalent batteries from European manufacturers, and all signs indicate that this dominance will continue for several years. In addition, we see that the battery industry in the USA is growing strongly, based on the Inflation Reduction Act (IRA), while the European battery industry is developing more slowly. This is due to several factors, including major price competition from China and few provisions for establishing a new battery industry.

China also currently dominate export of the raw materials needed for battery cell production. The new European Critical Raw Materials Act lists many materials that are essential components of current batteries, particularly for Li-ion technologies. Additionally, circular value chains are not well established and will not be able to support a rapidly growing battery industry. Market dominance from Asia, specifically China, is a challenge in terms of ensuring security of supply, low carbon footprints and sustainability. For example, NorthVolt, one of the largest players in Europe, has sold out of several initiatives and is laying off 1,600 employees in Sweden due to downscaling. China blocking graphite exports to Sweden is indicated to be one of the reasons for this.

Solution

Research and development on battery technology will be absolutely essential for the acceleration of the green shift, with regard to both decarbonising the transport sector and facilitating the introduction of more renewable energy. Batteries will be an essential part of future hybrid energy systems, for example, in hybrid hydropower plants where it is not possible to make hydropower more flexible for environmental reasons. From a national and European perspective, it is also important to develop the local battery industry along the entire value chain, from raw material extraction to installation in energy systems to ensure the security of supply. These value chains must be based on circularity.

In addition, new battery technologies that are safer, more sustainable, and use components that do not contain critical raw materials must be further developed. In order to avoid a monopoly in the battery market, aspects other than price must be focused on, such as sustainability, safety, better documentation of material origins and process, and local value chains. Provisions must be made for these aspects to be valued by end users, through incentives and directives.

Main COP29 recommendation: International research communities and industrial partners are developing technologies to reduce emissions and advance the energy transition, and we strongly recommend establishing a global North-South R&D program with open, competitive calls to ensure a fair, accelerated path to a sustainable economy.