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EVS28KINTEX, Korea, May 3-6, 2015

What are the options for Li-ion batteries after automotive use?

Hakim IDJIS 1,2

1Industrial Engineering Laboratory, Ecole Centrale Paris, Grande Voie des Vignes, 92290 Châtenay-Malabry, France, hakim.idjis@ecp.fr

2 Armand Peugeot Chair

Introduction

I. Motivations for the recovery of EV batteries

1. A mandatory recycling rate: 50% of battery weight.

2. The use of valuable and potentially scarce materials: Nickel, Cobalt and lithium

3. Batteries have a residual value after automotive end-of-life,

4. Material mining has an impact on the EV life-cycle-assessment.

5. The recovery value chain is emerging

2

Characterization of Li -ion battery recovery

3

Battery technology

4

Pack, Block Module Cells

AnodeCathodeSeparator

Electrolyte

Li +

Casing

Al Cu

graphite

2 Technologies are considered:NMC: Li(Ni 1/3Mn1/3Co1/3)O2 (Reference technology)LFP: LiFePO4 (substituting technology)

� Packaging� Cooling system� Battery Management System � Modules ≈ Cells

Li-ion battery recovery options

• Remanufacturing: Repair of failed batteries in the same configuration for automotive reuse

• Repurposing: Refurbishing of EOL batteries in a different configuration for 2nd life use (stationary energy storage, captive fleets …)

• Recycling: several processes are available5

End-Of-Life

Remanufacturing

Recycling

Repurposing

Recycling processes

6

Disas-sembly

MechanicalConditioning

Hydro-metallurgy

Pyro-metallurgy

Hydro-metallurgy

Disas-sembly

Co Ni

Fe Cu

P1

P2

Li Co

Ni Cu

Al + Cu, Steel

Plastics

Black mass

Al + Cu, Steel

Plastics

Cells

Own(Kwade, 2010)(Sangwan et Jindal, 2012)

Assessment of the recovery options

7

Recycled materials revenue

8

Based on reference batteries : NMC - Li(Ni 1/3Mn 1/3Co1/3)O2 batteries

• Recycling revenue = 1450 €/t

• Co, Ni, Cu = 90% of revenue

• Marginally maximum increase in revenue: + 30 €/t

Battery evolution

• Manganese enrichment (Ni0,1Mn0,8Co0,1): Revenue = 700 - 750 €/t

• Nickel enrichment (Ni0,8Mn0,1Co0,1): Revenue = 1530 €/t

• Shift to LFP (LiFePO4) : Revenue = 400 - 450 €/t

P2

e

P1

e

Contribution of materials (P1)

9

Recycling rate = 58%

Revenue = 1450€/t

• Active materials (Ni, Mn, Co) contribute only to 17% of the recycling rate• With the exception of lithium, the materials considered to be potentially critical

(Ni, Co, Cu) are already recycled. • 10 times lithium price increase� +5% in recycling revenue• Similar conclusions for P2

P1 : Disassembly + Mechanical conditioning + Hydrometallurgy• Assuming the financial data provided in the Lithorec project (Hoyer et al., 2014).

100% NMC batteries. The profitability of P1 is estimated

• It is likely that Recycling will be a net cost, even higher with battery technology evolution and the inclusion of collection cost

P2: Disassembly + Pyrometallurgy + Hydrometallurgy• The difference between P2 & P1 is the operation of pyrometallurgy instead of

mechanical conditioning. Pyrometallurgy requires higher investments.• Recycling revenue being the same, same conclusion for P2 � Recycling will be a

net cost for OEMs.10

Recycling profitability and cost for OEMs

Recycling cost (without collection cost) � Cost for OEM

25% 50% 100%

Pay back period: 8 - 10 y

Internal Rate of Return : 15 - 20% ( -1 000 €/t) ( - 350 €/t) (- 60 €/t)

Pay back period: 5 - 7 y

Internal Rate of Return : 20 - 30% ( - 1500 €/t) ( - 700 €/t) ( - 300 €/t)

Starting activity intensityP1 (Disassembly + Mechanical

Cond. + Hydrometallurgy)

Repurposing

• Repurposing: Refurbishing of EOL batteries in a different configuration for 2nd

life use (stationary energy storage, captive fleets …)

• Repurposing is at stage of development in research projects and OEM’s initiatives

• Analysis of the profitability of repurposing with the following assumptions:

11

Data For a 16 kWh battery For 1 t Source

Initial Investment 22 711 701 €

Max capacity kWh / y 80 000 5 000 ≃ 1 000 t

Variable cost€/kWh 15€-30€ 240€ – 480€ 1 200€ -2 400€ Neubauer et a l ., (2012)

New Bat price €/kWh 250€ - 400€ 4 000€ - 6 400€ 20 000€ - 32 000€

Average in l i terature

Repurposed Bat

price €/kWh

=New * 30%

75€ - 120€ 1 200€ - 2 000€ 6 000€ -9 600€

Neubauer et a l ., (2012),

(2013)

Collection cost €/kWh 19 € 300 € 1 500 € Estimation

Standridge and Corneal ,

(2014)

Repurposing

• Results:

• If new battery price drops under 300 €, repurposing is not profitable � Starting from 2020 – 2025, it is not reasonable to invest in repurposing

• Max cap 80 000 kWh ≃ 1 000 t of batteries � Volume is less an issue for repurposing

• When repurposing is profitable (IRR >= 15%), minimum revenue is 60€ kWh (3 500 € / t) � Repurposing can pay for recycling and reduce overall battery price

New Repur. 15 € 20 € 25 € 30 €

250 € 75 € 7% 5% 2% -2%

270 € 81 € 10% 8% 5% 2%

290 € 87 € 12% 10% 8% 6%

310 € 93 € 15% 13% 11% 9%

330 € 99 € 17% 15% 13% 11%

350 € 105 € 20% 18% 16% 14%

370 € 111 € 22% 20% 18% 16%

400 € 120 € 25% 23% 21% 20%

Variable cost /kWhBattery price

Internal rate of return

New Repur. 15 € 20 € 25 € 30 €

250 € 75 € 41 € 36 € 31 € 26 €

270 € 81 € 47 € 42 € 37 € 32 €

290 € 87 € 53 € 48 € 43 € 38 €

310 € 93 € 59 € 54 € 49 € 44 €

330 € 99 € 65 € 60 € 55 € 50 €

350 € 105 € 71 € 66 € 61 € 56 €

370 € 111 € 77 € 72 € 67 € 62 €

400 € 120 € 86 € 81 € 76 € 71 €

Repurposing variable cost /kWhBattery price/kWh

Revenue / kWh

Remanufacturing

• Remanufacturing: Repair of failed batteries in the same configuration forautomotive reuse

• Today, there is no known remanufacturing activity of lithium-ion batteries

• Analysis of the profitability of remanufacturing with the following assumptions:

13

Data For a 16 kWh battery For 1 t Source

Initial Investment 18 900 000 €

Max capacity kWh / y 480 000 30 000 ≃ 6 000 t

Variable cost€/kWh 80€-140€ 1 280€ – 2 240€ 6 400€ -11 200€

Standridge and Corneal ,

(2014) + Es timation

Remanufactured Bat

price €/kWh 100€ - 200€ 1 600€ - 3 200€ 8 000€ -16 000€ Conservative assumption

Collection cost €/kWh 19 € 300 € 1 500 € Estimation

Standridge and Corneal ,

(2014)

• Results:

• 25% of Max capacity≃ 1 500 t of end-of-life batteries � Volume is less an issue for remanufacturing.

• When remanufacturing is profitable (IRR >= 15%), minimum revenue is 1000 € / t � Remanufacturing can pay for recycling and reduce overall battery cost

14

Starting activity intensity = 25%

80 € 100 € 120 € 140 €

100 €

125 € 27% 3%

150 € 46% 31% 12%

175 € 63% 50% 35% 18%

200 € 80% 67% 53% 39%

Internal Rate of

Return

Reman. variable cost /kWh

Rem.

Bat.

Price

/kWh

80 € 100 € 120 € 140 €

100 € 1 € 19 €- 39 €- 59 €-

125 € 26 € 6 € 14 €- 34 €-

150 € 51 € 31 € 11 € 9 €-

175 € 76 € 56 € 36 € 16 €

200 € 101 € 81 € 61 € 41 €

Revenue / kWhReman. variable cost /kWh

Rem.

Bat.

Price

/kWh

Revenue / kWh

Remanufacturing

Conclusion

15

Recovery option Nature Revenue €/t Comments

Recycling Obligatory Negative

Economies of scale are importantSensitive to the evolution of battery technologyP1 & P2 perform the same in terms of recyclingrevenue and recycling rate

RepurposingOptional, if profitable

4800 - 7000Does not necessitate big volumesSensitive to the evolution of new batteries pricesTechnological challenges, Safety & regulatory issues

RemanufacturingOptional, if profitable 800 - 8 000

Does not necessitate big volumesTechnological challenges, less organizational and legalconstraints

• Remanufacturing seems to be more feasible than repurposing, more challengeshave to be met in repurposing.

• Recycling can not be self sustained just with recycled materials revenue.Remanufacturing or repurposing might be the solution to payfor recycling andreduce the overall battery price.

EVS28KINTEX, Korea, May 3-6, 2015

What are the options for Li-ion batteries after automotive use?

Hakim IDJIS 1,2

1Industrial Engineering Laboratory, Ecole Centrale Paris, Grande Voie des Vignes, 92290 Châtenay-Malabry, France, hakim.idjis@ecp.fr

2 Armand Peugeot Chair

Acknowledgments

This work was benefited from the support of the chair “PSA Peugeot CitroenAutomobile: Hybrid technologies and Economy of Electromobility. So-called ArmandPEUGEOT Chair”, led by Ecole Centrale Paris, ESSEC and SUPELEC, and sponsoredby PEUGEOT CITROEN Automobile

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Biblio• Hoyer, C., Kieckhäfer, K., Spengler, T.S., 2014. Technology and capacity planning for the recycli

ng of lithium-ion electric vehicle batteries in Germany. J. Bus. Econ.

• Neubauer, J., Pesaran, A., 2011. The ability of battery second use strategies to impact plug-in electric vehicle prices and serve utility energy storage applications. J. Power Sources 196,

• Neubauer, J.S., Pesaran, A., Williams, B., Ferry, M., Eyer, J.,2012. A Techno-Economic Analysisof PEV Battery Second Use: Repurposed-Battery Selling Price and Commercial and IndustrialEnd-User Value (SAE Technical Paper No. 2012-01-0349). SAE International, Warrendale, PA.

• Standridge, C.R., Corneal, L., 2014. Remanufacturing, repurposing, and recycling of post-vehicle-application lithium-ion batteries. Mineta National Transit ResearchConsortium, San José, CA

• Kwade, A., 2010. On the way to an “intelligent” recycling of traction batteries. Presented at the 7th Braunschweiger Symposium on Hybrid, Electric Vehicles and Energy Management,Braunschweigh.

• Sangwan, K.S., Jindal, A., 2013. An integrated fuzzy multi-criteria evaluation of lithium-ionbattery recycling processes. Int. J. Sustain. Eng. 6, 359–371. doi:10.1080/19397038.2012.735717

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Lithorec estimates

Small Large

Capacity

Invest

Fixed expenses €/a

Capacity

Invest

Fixed expenses €/a

6000 BEV-eq/a* 60000 BEV-eq/a*

560 000 € 3 100 000 €

227 000 € 1 020 000 €

1500 t cells/a 15000

2 100 000 € 5 240 000 €

120 000 € 255 000 €

3300 t coating / a 33000 t coating / a

10 000 000 € 40 000 000 €

1 350 000 € 5 380 000 €

Disassembly

Mechanical Conditioning

Hydrometallurgical

Conditioning