Latest news with #Naxtra
The Star
6 days ago
- Business
- The Star
Rio Tinto confident lithium will retain its battery metal crown
Lithium's low price may be its best defence in fighting off challenges from other materials. — Reuters IT'S a tough time to be a lithium producer as the light metal sinks under the weight of excess supply. Lithium hydroxide prices have collapsed by 90% from their 2022 peak and show no signs of recovery. Multiple producers are now operating at zero or negative margins, according to consultancy Wood Mackenzie. Even giants like Albemarle, the world's largest producer of the battery metal, have been cutting costs and deferring new projects to weather the supply storm. Rio Tinto, however, is undaunted. The global mining house remains 'consistent in its belief in the long-term outlook for lithium'. The company is putting its money where its mouth is, snapping up US-based producer Arcadium for US$6.7bil and partnering with Chilean state entities on two projects. It's a big call, given the current despondency in the market, but Rio believes demand will be strong enough both to absorb the current excess and pull the market into deficit around the turn of the decade. It's a bet that lithium will remain the dominant battery metal in a fast-changing landscape. The weakness in the lithium price results from too much new supply hitting the market at the same time. Global lithium production grew by over 35% year-on-year in 2024, according to the International Energy Agency (IEA). New mines are still ramping up and Chinese players show little appetite for cutting production. The supply tsunami, however, masks the strength of lithium demand. The IEA estimates global usage grew by 30% last year, the increase being equivalent to the size of the entire global market in 2018. The electric vehicle (EV) sector, the biggest user of lithium-ion batteries, is in robust health. Sales of new energy vehicles rose by 25% last year and were up by 29% in the first quarter of this year, according to consultancy Rho Motion. Lithium use in energy storage systems is growing even faster as global power systems pivot towards cleaner but intermittent energy sources such as solar and wind. Rio Tinto said it expects demand to grow at a compound annual rate of over 10% through 2040. The main threat to that scenario would be a shift in battery chemistry as manufacturers compete to produce ever cheaper, more efficient batteries. There has already been a big shift away from more expensive battery metals such as cobalt and nickel but to date lithium has maintained its status as the dominant ingredient in the chemistry mix. The amount of nickel and cobalt deployed in new energy vehicles was up by just 12% and 2% year-on-year respectively in March, according to Adamas Intelligence. But lithium deployment was up by 30%, matching the overall EV sales growth rate. The battery materials battle, however, is far from over. Chinese giant CATL has been pioneering the development of sodium-ion batteries. The latest iteration, Naxtra, will almost match in efficiency the lithium iron phosphate (LFP) batteries that are displacing nickel-manganese-cobalt or NCM chemistries. CATL's billionaire founder Robin Zeng sees sodium-ion batteries potentially replacing up to half the market for LFP batteries. The IEA is less sure, noting that sodium-ion batteries are most competitive in a high lithium price environment, which the current one is certainly not. Lithium's low price may be its best defence in fighting off challenges from other materials. Furthemore, it is also causing battery prices to fall, making new energy vehicles cheaper. Average battery pack prices fell by 20% to a record low of US$115 per kilowatt-hour in 2024, the largest annual drop since 2017, according to the IEA. — Reuters Andy Home is a columnist for Reuters. The views expressed here are the writer's own.
Reuters
03-06-2025
- Business
- Reuters
Rio Tinto bets lithium will retain its battery metal crown: Andy Home
LONDON, June 3 (Reuters) - It's a tough time to be a lithium producer as the light metal sinks under the weight of excess supply. Lithium hydroxide prices have collapsed by 90% from their 2022 peak and show no signs of recovery. Multiple producers are now operating at zero or negative margins, according to consultancy Wood Mackenzie. Even giants like Albemarle (ALB.N), opens new tab, the world's largest producer of the battery metal, have been cutting costs and deferring new projects to weather the supply storm. Rio Tinto (RIO.L), opens new tab, however, is undaunted. The global mining house remains "consistent in its belief in the long-term outlook for lithium". The company is putting its money where its mouth is, snapping up U.S.-based producer Arcadium for $6.7 billion and partnering with Chilean state entities on two projects. It's a big call, given the current despondency in the market, but Rio believes demand will be strong enough both to absorb the current excess and pull the market into deficit around the turn of the decade. It's a bet that lithium will remain the dominant battery metal in a fast-changing landscape. The weakness in the lithium price results from too much new supply hitting the market at the same time. Global lithium production grew by over 35% year-on-year in 2024, according to the International Energy Agency (IEA). New mines are still ramping up and Chinese players show little appetite for cutting production. The supply tsunami, however, masks the strength of lithium demand. The IEA estimates global usage grew by 30% last year, the increase being equivalent to the size of the entire global market in 2018. The electric vehicle (EV) sector, the biggest user of lithium-ion batteries, is in robust health. Sales of new energy vehicles rose by 25% last year and were up by 29% in the first quarter of this year, according to consultancy Rho Motion. Lithium use in energy storage systems is growing even faster as global power systems pivot towards cleaner but intermittent energy sources such as solar and wind. Rio Tinto said it expects demand to grow at a compound annual rate of over 10% through 2040. The main threat to that scenario would be a shift in battery chemistry as manufacturers compete to produce ever cheaper, more efficient batteries. There has already been a big shift away from more expensive battery metals such as cobalt and nickel but to date lithium has maintained its status as the dominant ingredient in the chemistry mix. The amount of nickel and cobalt deployed in new energy vehicles was up by just 12% and 2% year-on-year respectively in March, according to Adamas Intelligence. But lithium deployment was up by 30%, matching the overall EV sales growth rate. The battery materials battle, however, is far from over. Chinese giant CATL ( opens new tab has been pioneering the development of sodium-ion batteries. The latest iteration, Naxtra, will almost match in efficiency the lithium iron phosphate (LFP) batteries that are displacing nickel-manganese-cobalt (NCM) chemistries. CATL's billionaire founder Robin Zeng sees sodium-ion batteries potentially replacing up to half the market for LFP batteries. The IEA is less sure, noting that sodium-ion batteries are most competitive in a high lithium price environment, which the current one is certainly not. Lithium's low price may be its best defence in fighting off challenges from other materials. It is also causing battery prices to fall, making new energy vehicles cheaper. Average battery pack prices fell by 20% to a record low of $115 per kilowatt-hour in 2024, the largest annual drop since 2017, according to the IEA. The share of cathode raw materials in the battery pack price fell to 10% in 2024 from over 20% in 2023 thanks to bombed-out prices across the battery metals spectrum. The shift to LFP batteries in the Chinese market has also played a significant role in reducing costs since they are 30% cheaper than the NCM batteries popular in Western markets. European auto companies have taken note. Volkswagen ( opens new tab is adopting LFP technology, opens new tab as it aims for a 20,000-euro entry-level electric car for the European market. Price has been one of the major deterrents for consumers to go electric but the gap with conventional vehicles is narrowing. In terms of EV sales, market forces are a powerful offset to the headwinds from tariffs and U.S. President Donald Trump's scrapping of his predecessor's green energy agenda. Lithium's battery metal crown looks safe for now. Even assuming sodium-ion batteries start taking market share in China, the impact on lithium will be mitigated by an acceleration in the global EV revolution and growing demand for grid storage solutions. Moreover, the IEA points out that despite the interest in novel chemistries, the primary driver of battery innovation remains existing, conventional chemistries based on lithium. Incremental improvements are being made all the time both to NCM and LFP technologies. Lithium demand is already growing phenomenally fast and every indication suggests it will continue to do so in the next few years. But how long before demand strength translates into a market deficit and higher prices will depend on how long the current supply surge lasts. Don't hold your breath. It could take a while. The opinions expressed here are those of the author, a columnist for Reuters.
Yahoo
21-05-2025
- Automotive
- Yahoo
World's largest battery manufacturer achieves revolutionary breakthrough with new technology: 'A key development'
The world's largest electric vehicle battery maker has hit a remarkable benchmark. China-based Contemporary Amperex Technologies, or CATL, is mass-producing sodium-ion batteries, bringing to fruition a technology that has the potential to replace common lithium-ion chemistry, according to a news release from the company. "With sodium's inherent safety and abundant reserves, it efficiently reduces dependence on lithium resources and strengthens the foundation of new energy technologies, while promoting energy utilization from 'single resource dependence' to 'energy freedom,'" CATL said in the statement. Experts worldwide are studying sodium-based batteries for those reasons and others. A lower energy density — or the amount of power the pack can store per pound — compared to lithium has been a holdup, CleanTechnica reported. CATL's Naxtra Battery, made for passenger EVs with a version for heavy-duty start-stop use, seems to solve the problem. The passenger pack can provide over 310 miles of range. That's superior to the median for model-year 2024 EVs, which was reported at 283 miles by the U.S. Energy Department. Those rides are mostly all powered by lithium-ion cells. The packs can also safely operate between minus 40 degrees and 178 degrees Fahrenheit while maintaining 90% of "usable power" at the coldest mark. It can function for more than 10,000 cycles, all per CATL. New Atlas added that it equates to 3.6 million miles driving before significant capacity loss. On the heavy-duty side, Naxtra's 24-volt product is meant to replace lead-acid packs in dirty combustion vehicles, with an eight-year life cycle. There's also a 61% reduction in costs during that time compared to traditional types. It's built to handle frequent restarts for rigs with engines that stop when idling. It's a fuel-saving trick that's been in use for more than a decade. The tech made headlines in the April 2011 issue of Car and Driver, for reference. The Naxtra battery is said to be able to fire a start after being idle for a year, all per CATL. "Compared to lead-acid batteries, it is more efficient, eco-friendly, and economical, driving commercial vehicles into a lead-free era where vehicle and battery age as one," per the statement. While that is impressive, fully electric and cleaner haulers are already on the road, including from Tesla. A 24-hour EV rig from Danfoss is being developed in Denmark, among other projects. If you were going to purchase an EV, which of these factors would be most important to you? Cost Battery range Power and speed The way it looks Click your choice to see results and speak your mind. Naxtra's passenger version ideally parks gas burners, preventing planet-warming tailpipe exhaust linked by medical experts to lung, heart, and other health risks, including dementia. Diesel exhaust is "thought to be a likely human carcinogen," according to the U.S. Environmental Protection Agency. Sodium chemistry is coming in all sizes, with a huge stationary storage unit recently going online in China. It can store enough renewable energy to power 12,000 homes a day. Other breakthroughs in various stages of development include lithium iron phosphate and even cannabis cars. As you might guess, the chemistry for the latter pack is unique. The experts are trying to reduce the tens of millions of tons of deposits that Sustainability by Numbers reported will need to be mined and processed to power clean energy goals by 2040. While that is a lot, it's nowhere near the 16.5 billion tons of fossil fuels mined annually, per the findings. Sodium's abundance and easier extraction could limit the impact of battery-making even more. However, lithium-ion batteries remain reliable and safe, with rides owned by more people than ever. And now is a great time to buy one stateside, as tax credits to offset the cost are still available. That's in addition to the loads of cash you can bank annually by eliminating gas and/or maintenance expenses. Adding a home solar panel system can increase your savings. The abundant sunrays can provide juice for your EV, and they are applicable for tax breaks, as well. EnergySage offers free online support to help you navigate the process and even find an installer. For CATL's part, company experts envision a salty future for EVs. "The performance breakthrough of sodium-ion batteries is a key development in the full scenario application of batteries," the CATL statement said. Join our free newsletter for weekly updates on the latest innovations improving our lives and shaping our future, and don't miss this cool list of easy ways to help yourself while helping the planet.
Tatler Asia
19-05-2025
- Automotive
- Tatler Asia
Meet CATL, the world's largest EV battery maker, powering the electric vehicle boom
Cutting-edge battery technologies Above CATL's Shenxing Superfast Charging Battery can provide up to 800 km in range. (Photo: CATL) In the race for battery dominance, CATL keeps on top of its competitors with its continuous innovations. Just after BYD announced its 1 megawatt fast-charging technology, CATL introduced its second-generation Shenxing Superfast Charging battery in April 2025 with an 800 km range and a peak charging power of 1.3 megawatts. This means that with a compatible charger, the new CATL battery can have a range of 520 km in 5 minutes, compared to BYD's 400 km. The Shenxing battery will be used in more than 60 EV models this year. Above CATL's EV batteries are also widely used in light trucks, commercial vehicles and city buses. (Photo: CATL) Also announced last month at the CATL Tech Day in Shanghai is the Naxtra sodium-ion battery, the first mass-produced battery of its type. The battery uses sodium as its main component, which is more abundant and cheaper to produce compared to other battery types that rely on more expensive raw materials, leading to lower production costs. When Naxtra batteries arrive in the market at the end of the year, EVs will have around 500 km of range. The batteries also have the benefit of being safer and less prone to fire or explosion during a collision compared to traditional lithium-based batteries. To address range anxiety, CATL also developed the Freevoy Dual-Power battery. The battery's dual power architecture means that a single battery can have a main energy zone and an extended range energy zone. This gives the battery a maximum energy storage capacity that's good for a 1,500 km range, making it comparable to a hybrid vehicle. A trade ware between superpowers Because of geopolitical issues, not everything has been smooth sailing for CATL. In January 2025, the company was added to a United States Department of Defense (DoD) blacklist designating it as a 'Chinese Military Company'. CATL has released a statement that refutes this claim and said that it has 'never engaged in any military-related business or activities'. It also said that it would engage with the DoD to address the listing and take legal action if needed. Above CATL's Smart Micro-grid Energy Storage Solution is designed as a charging station for EVs. (Photo: CATL) CATL has also encountered legal and regulatory challenges with its push for overseas expansion in Europe and the US. In March 2025, the US Congress passed a bill that restricts the Department of Homeland Security from buying batteries from six Chinese-linked companies, including CATL, beginning October 2027. The bill intends to reduce dependency on batteries produced by countries deemed adversarial to the US. The bill is now under review by the US Senate. After its IPO, CATL will definitely have its hands full as it rises to the challenge of developing the latest battery technology for passenger and commercial EVs and other industrial applications such as wide-scale energy storage solutions. NOW READ BYD's megawatt charger promises lightning fast EV charging Mercedes just launched its first all-electric Mercedes-Maybach SUV in Malaysia Chinese EV brands to watch out for
Yahoo
19-05-2025
- Automotive
- Yahoo
China's heavy truck EV sales to surge by 2028
China's heavy truck sales are expected to experience a significant shift towards electric vehicles (EVs), with projections indicating that EVs could account for half of the market by 2028. This anticipated increase from just 10% in 2024 was reported by Reuters, citing CATL chairman. CATL has recently launched a 60 gigawatt-hour energy storage and EV battery production base in Shandong, marking the company's first such facility in northern China. The addition of a second and third phase over the next two years is set to create a substantial energy industry battery cluster in the region. The local government of Shandong has ambitious plans to develop a 100bn yuan ($14bn) lithium battery industry by the end of the year. This industry will encompass a wide range of components including electrode materials, electrolytes, battery cells, and assembly. In a significant move towards diversifying its product range, CATL unveiled a series of innovative battery products in April. The Super Tech Day event showcased the Freevoy dual-power battery, the Naxtra sodium-ion battery, and the second-generation Shenxing superfast charging battery. An integrated 24V start/stop Naxtra battery designed specifically for heavy-duty trucks was also introduced. As of May, CATL is preparing for a substantial Hong Kong listing, with expectations to raise at least HK$31.01bn. The company plans to offer 117.9 million shares, with the potential for the listing to increase to approximately $5.3bn if additional options are exercised. Following the announcement, CATL's shares in Shenzhen saw a 3.6% rise, outperforming the CSI300 index. "China's heavy truck EV sales to surge by 2028 – CATL" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
