Batteries Technical Addendum
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new energy futures paper: batteries technical addendum ©2019 Vector Ltd 1 note contents 1. Legislation and Policy Review 5 3. Battery Data and Projections 22 This Technical Addendum is intended 1.1 Waste Minimisation Act 2008 5 3.1 Battery Numbers and Trends 22 to accompany the Vector New Energy 1.1.1 Waste Levy 5 3.1.1 Global Trends 22 Futures Paper on Batteries and the Circular Economy. With special thanks 1.1.2 Product Stewardship 5 3.1.2 New Zealand Vehicle Fleet 23 to Eunomia Research & Consulting 1.1.3 Regulated Product 3.2 Future Projections 26 Stewardship for large batteries 6 for providing primary research and 3.2.1 Global Electric Vehicle Thinkstep Australasia for providing 1.1.4 Waste Minimisation Fund 7 Projections 26 information to Vector on battery Life 1.2 Emissions Trading Scheme 7 3.2.2 Buses and Heavy Vehicles 27 Cycle Assessment. 1.2.1 Proposed Changes to the 3.2.3 NZ End of Life EV Battery NZ ETS 8 Projections 27 1.3 Climate Change Response 3.3 Other Future Developments 28 (Zero Carbon) Amendment Bill 8 4. Recovery Pathways 29 1.4 Electric Vehicles Programme 9 4.1 Current Pathways 29 1.5 Electric Vehicles Programme 10 4.1.1 Collection 29 1.6 Voluntary Codes of Practice 10 4.1.2 Reuse/Repurposing 29 1.6.1 Motor Industry Association: 4.1.3 Global Recycling Capacity 30 Code of Practice - Recycling of 4.1.4 Lithium 31 Traction Batteries (2014) 10 4.1.5 Cobalt 33 1.6.2 Australian Battery Recycling Initiative (ABRI) 10 4.1.6 Graphite 35 1.7 International Agreements 11 5. Summary and Conclusions 36 1.7.1 Basel Convention 11 5.1 Legislation and Policy 36 1.7.2 Waigani Convention 11 5.2 Battery Types and Technology 36 1.7.3 Australian Product 5.3 Future Projections 37 Stewardship Act 2011 11 5.4 Recovery Pathways 37 1.8 Future Policy Signpost: 5.5 Key Conclusions 38 Productivity Commission Report 12 Appendices 39 1.8.1 Electrifying New Zealand’s A.1.0 Electric Vehicles and Battery Capacity 40 Vehicle Fleet 12 A.2.0 Alternative End of Life EV Projections 42 1.9 Summary of Legislative and A.3.0 Transporting of Waste Lithium-ion Policy Context 13 Batteries 43 2. Battery Types and Technology 14 A.4.0 Vector Functional Specifications for 2.1 Large Battery Chemistry 14 trialling Battery Energy Storage 2.1.1 Nickel Metal Hydride 14 Systems 44 2.1.2 Lithium-ion 14 2.2 Battery Construction 16 Disclaimer 2.2.1 Cell Types 17 Vector Ltd has taken due care in the preparation of this 2.2.2 Cell Construction 17 report to ensure that all facts and analysis presented are 2.2.3 Lithium-ion Battery as accurate as possible within the scope and timeline Composition 18 of this project. However, no guarantee is provided in respect of the information presented, and Eunomia 2.2.4 NiMH battery composition 19 Research & Consulting is not responsible for decisions or 2.3 Uses of Large Batteries in actions taken on the basis of the content of this report. New Zealand 20 2.4 Lifespan 20 2.5 Technology Changes 20 2 3 list of tables, figures and boxes 1. legislation and policy review Figure 1: Value of NZ Units Over Time (NZ$) 7 Figure 17: Major Lithium Production This section provides an overview of existing policy • Puts a levy on all waste disposed of in a landfill. Figure 2: Number of Vehicles in NZ Countries 2012 to 2017 (tonnes) 31 and legislative environment and potential future • Allows for mandatory / regulated and Over Time 12 Figure 18: Lithium International Market changes that may impact the uptake of large batteries and how they are managed through accredited voluntary product stewardship Figure 3: Adoption of EVs Over Time 12 Price (US$ per 100kg) 32 their life cycle. schemes. Table 1: Main Types of Lithium Ion Battery Figure 19: Lithium International Supply Cell Chemistry 15 and Demand 32 • Allows for regulations to be made making it mandatory for certain groups (for example, Figure 4: Typical specific energy of lead-, Figure 20: Mined Cobalt Output 2016 33 1.1 Waste Minimisation Act landfill operators) to report on waste to improve nickel- and lithium-based batteries 15 Figure 21: Cobalt International Market 2008 information on waste minimisation. Figure 5: Delivery of Battery Capacity by Price (US$ per Tonne) 33 The purpose of the Waste Minimisation Act Cathode Chemistry 16 Figure 22: Projected Cobalt Supply against • Establishes the Waste Advisory Board to give 2008 (WMA) is to encourage waste minimisation Projected Demand (2005 – 2030) 34 independent advice to the Minister for the Table 2: Main Cell Configurations 17 and a decrease in waste disposal to protect Environment on waste minimisation issues. Figure 6: Construction of Cylindrical Cell 17 Figure 23: Cobalt Content of EV Batteries 34 the environment from harm and obtain Table 3: Lithium Ion Battery Composition Figure 24: Estimates of Cobalt Recovery environmental, economic, social and cultural Various aspects of the Waste Minimisation Act are by (% by Weight) 18 from Used Batteries 35 benefits. discussed in more detail below. Table A - 1: Used EV Battery Projections Figure 7: Lithium Ion Battery Composition The WMA introduced tools to facilitate these goals, by (% by Weight) 19 Assuming EV Uptake is in Line 1.1.1 Waste Levy with Global Projections 41 including: Figure 8: Construction of NiMH Cell 19 From 1st July 2009, the Waste Levy came in to Table A - 2: Used EV Battery Projections • Waste management and minimisation plan Table 4: Indicative Nickel Metal Hydride effect, adding $10 per tonne to the cost of landfill Assuming Extended Average obligations for territorial authorities Composition by (% by Weight) 20 disposal at sites which accept household solid Battery Life 42 Table 5: Key Battery Advances and waste. The levy has two purposes, which are set Figure A - 2: Used EV Battery Projections • A waste disposal levy to fund waste Timelines 21 out in the Act: Assuming Extended Average minimisation initiatives at local and central government levels Figure 9: Estimated Size of the Battery Life 42 • To raise revenue for promoting and achieving Rechargeable Battery Market 22 • Product stewardship provisions. waste minimisation Figure 10: Evolution of the Lithium Ion Market 22 In brief, the WMA: • To increase the cost of waste disposal to recognise that disposal imposes costs on the Figure 11: Project Use Profile for Lithium Ion environment, society and the economy. Batteries to 2025 23 • Clarifies the roles and responsibilities of territorial authorities with respect to Table 6: NZ Vehicle Fleet Composition 23 waste minimisation e.g. updating Waste This levy is collected and managed by the Ministry Figure 12: New Zealand EV Fleet Size by Year 24 Management and Minimisation Plans for the Environment (MfE) who distribute half of the revenue collected to territorial authorities (TA) Figure 13: EVs Added to the Fleet by Year 24 (WMMPs) and collecting/administering levy funding for waste minimisation projects. on a population basis to be spent on promoting or Table 7: Japanese EV Sales 25 achieving waste minimisation as set out in their Figure 14: Projected EV Market Share 26 • Requires that a Territorial Authority promote WMMPs. The other half is retained by the MfE and Table 8: Estimates of End of Life EV Battery effective and efficient waste management and managed by them as a central contestable fund Packs 2019 -2030 27 minimisation within its district (Section 42). for waste minimisation initiatives. Figure 15: Estimates of End of Life EV Battery • Requires that when preparing a WMMP Currently the levy is set at $10/tonne and applies to Packs 2019 -2030 28 a Territorial Authority must consider the wastes deposited in landfills accepting household Figure 16: Summary of Recovery Pathways 29 following methods of waste management waste. The MfE published a waste disposal levy Table 9: Summary of Global Lithium and minimisation in the following order of review in 2017.1 The review indicates that the levy Battery Recyclers 30 importance: may be extended in the future, and the current government has signalled their intention for it - Reduction to be extended and raised, although there is no publicised timetable for this, and no indication of - Reuse the potential future rate of the levy. - Recycling 1.1.2 Product Stewardship - Recovery Under the Waste Minimisation Act 2008 if the - Treatment Minister for the Environment declares a product to be a priority product, a product stewardship - Disposal scheme must be developed and accredited to ensure effective reduction, reuse, recycling 1 Ministry for the Environment. 2017. Review of the Effectiveness of the Waste Disposal Levy 2017. Wellington: Ministry for the Environment. 4 5 1. legislation and policy review continued or recovery of the product and to manage any electronic products, refrigerants and other Discussions with MfE staff indicate the following: environmental harm arising from the product synthetic greenhouse gases, agrichemicals and 1.2 Emissions Trading Scheme 2 • The scheme is likely to be a regulated, co- when it becomes waste. their containers, farm plastics, and packaging. The New Zealand Emissions Trading Scheme (NZ designed model. The aim would be to ensure The potential scope for electrical and electronic ETS) was established in 2008 as a tool to help New So far, no products have been declared to be fairness, surety of outcomes and to avoid free products is as follows: Zealand meet its international climate change ‘priority products’. There are, however, a number riders. obligations and reduce its net greenhouse gas of voluntary product stewardship schemes.