Research on Power Battery Full Life Cycle Asset Management
(Annual Report of Power Battery Full Life Cycle Joint Innovation Center)
December 2020
Foreword
China EV100 is committed to becoming a high-level third-party think-tank for the industry of electric vehicles (EVs) and related fields in China, and conducting research is the top priority for building the think-tank. China EV100 mainly aims to create a platform, integrate internal and external resources, and organize professionals to conduct surveys and researches, so as to eventually form research reports that can be used as references for decision making.
This Research Report was formulated based on interim research results and for internal reference only. Since it's not for public release, sources are not provided for the data cited, the viewpoints collected and the research evidences used for now. As some information is from external sources, and is not verified with the related enterprises one-by-one, if the analysis about some enterprises is inaccurate, the actual situation should prevail.
Project Team
Team Leader: Zhang Yongwei
Deputy Team Leader: Xu Erman
Members: Zhu Jin, Zhang Jian, Wang Xiaoxu, Yan Yancui, Li Songzhe
(In no particular order)
Acknowledgement
Bao Wei, General Manager of Zhejiang Huayou Recycling Technology Co., Ltd.
He Long, CEO of Findreams Battery (BYD) Co., Ltd.
Jia Junguo, Level-3 Consultant of State Grid Electric Vehicle Service Co., Ltd. and Chairman of SEETIC
Pan Fangfang, Deputy General Manager of China Lithium Battery Technology Co., Ltd.
Sun He, Vice President of SK Innovation E-mobility Business
Xu Zhibin, General Manager of ADI China Automotive Business
Zhao Xiaoyong, General Manager of Beijing SDM Resource Recycling Research Institute Co., Ltd. Vale Minerals China Co., Ltd.
(In the order of initial Chinese phonetic alphabet of surname)
Abstract
With the advent of the electrification era, the roles of power battery as five centers are becoming clear: It has become the cost center, security center, important data generation center, scarce resource consumption center and energy storage center of EVs. Battery manufacturers and vehicle manufacturers are constantly promoting the coordinated development across all critical stages of the power battery lifecycle and improving the efficiency of asset operation and management of the power battery lifecycle through technological innovation and model innovation. This report focuses on such three crucial stages of the power battery lifecycle as R&D and production, in-vehicle use, and recycling, and through literature review, enterprise questionnaire and field investigation, elaborates on the significance, progress and main obstacles of technological and model innovations in some key fields related to power battery asset management in recent years, and puts forward development suggestions.
1. R&D and production: At this stage, the industry strives to improve the lifecycle performance of power batteries and reduce the lifecycle cost by strengthening the technological R&D of battery management system (BMS) and the standardization of power batteries. Favorable policies and standards are promulgated to support the technological innovation of BMS and encourage the standardized development of power batteries, multi-enterprise layout and application of wireless BMS. Meanwhile, standardized power battery modules start to be used in commercially available models.
2. In-vehicle use: At this stage, the industry explores and applies innovative technologies and business models such as battery swapping, and strives to improve the management efficiency of the power battery lifecycle by leveraging the advantages of centralized resource management. The recently issued government policies have enhanced support for battery swapping, research institutions and enterprises have reserved key technologies in battery swapping, and various main players have arranged the battery swapping models and speeded up the construction of pilot projects.
3. Recycling: At this stage, the industry fully exploits the surplus value of power batteries and achieves the closed-loop lifecycle management of power batteries by improving the recycling economy of power batteries. The framework of support policies and standards has been basically established and gradually consummated. Driven by the effective promotion of EVs in some regions,
the scale of recycling service sites has begun to take shape, cascade utilization of power batteries in some low-speed vehicles and energy storage projects has been proved to be economical, and the economy of lithium iron phosphate recycling has been improved through process optimization.
4. Data platform: Lifecycle data is an important asset to enhancing the power battery management efficiency, and the data platform is a significant carrier of power battery lifecycle data. Relevant policies advocate the lifecycle data concept, several main players actively build data platforms in various stages of the power battery lifecycle, and some enterprises have begun to explore the construction scheme of power battery lifecycle data platform. In order to enhance the power battery full lifecycle management efficiency, we have to overcome some obstacles:
1. Policies and regulations: First, the responsibility for safety under the battery swapping model is yet to be defined, so as to further clarify the boundaries of rights and responsibilities for asset operation; Second, the regulatory oversight of the recycling industry for retired batteries is to be enhanced, and the corresponding policies are urgently needed to promote closed-loop asset circulation; Third, there is no regulatory policy for the lifecycle information of power batteries and no effective information support for asset management; Fourth, there is no incentive mechanism for EVs to be connected to power grids and take advantage of the peak-valley electricity price difference, and the strategy for improving asset operation efficiency has failed.
2. Industry standards: First, some BMS testing standards are yet to be updated and improved, to increase the industry's overall level of battery state assessment and asset maintenance; Second, there are too many sizes for power batteries in the existing national standard, and the large-scale asset management faces various challenges; Third, there is a serious lack of battery swapping standards, and the channels for the broad circulation of assets are blocked; Fourth, there is a lack of standards for "vehicle-pile-grid" current and information exchange, hampering the efficient energy interaction between EVs and grids; Fifth, the data standards for various stages of the power battery lifecycle are not unified yet, and the integration of data assets is inefficient.
3. Key technologies: First, the BMS is the key foundation for maintenance and management of battery assets, and its key algorithm needs to be further optimized; Second, battery control strategies haven't taken the vehicle-to-grid (V2G) scenarios into consideration yet, and the application value of assets on the grid side is yet to be further explored; Third, further breakthroughs are yet to be made on the common technologies in the battery recycling industry, to increase the residual value of assets.
4. Commercial application: First, it's difficult to build an industry consensus in the field of passenger vehicles for the standardization of battery packs, which significantly increases the cost of asset operation; Second, constructing and operating battery swapping stations cost too much,
which exerts some pressure on business operation; Third, the outcome of increasing asset value through the V2G model is dramatically compromised due to the lack of efforts to modernize power grids for smart operations and the lack of a warranty system for EVs; Fourth, the overall costs of the battery recycling industry are high, and the liquidity of assets is weakened; Fifth, there isn't a commercialization model for the data products of power batteries, and data owners are not highly motivated. Regarding the abovementioned problems in development, the suggestions are as follows:
1.Policies and regulations: First, increase policy support, standardize regulations on the battery swapping industry, and create an ecosystem for large-scale asset management ecosystem; Second, introduce legislation on battery recycling, and keep improving the management system across the industry, to ensure the realization of closed-loop asset management; Third, formulate a regulatory policy on the lifecycle data of power batteries, to ensure the integrity and effective utilization of data assets; Fourth, refine the peak-valley price mechanism for end-users and the regulatory measures for connecting EVs to power grids, to build a system for improving the value of assets.
2. Industry standards: First, improve the national standard system for BMS testing and standardization of power battery size, to provide the basis for effectively increasing the efficiency of asset operation; Second, accelerate the introduction of a standard for battery swapping, to guide the standardized development of the industry; Third, work on communication standards supporting the two-way charging and discharging of EVs, and promote the adoption of the new models; Fourth, improve the data standards for various stages of the power battery lifecycle, and lay a foundation for circulation and integration of data assets.
3. Technology R&D: First, attach importance to innovation with the software and hardware technologies for the BMS; Second, conduct research on V2G and other innovative technologies that are conductive to optimizing the operation and management of power battery assets; Third, increase R&D spending on the common technologies in the recycling industry.
4. Commercialization: First, work on the feasibility of widely adopting standardized power batteries at the industry level; Second, create an industry ecosystem for battery swapping, and explore new business models for asset operation and management such as the "battery bank"; Third, promote on a large scale V2G pilot projects, and explore the feasibility of the commercialization model; Fourth, enhance collaboration and interaction along the industry chain for power battery recycling, to drive cost reduction in the industry together; Fifth, guide and cultivate the construction of the shared lifecycle data platforms, to drive the realization of more application scenarios.
Contents
Contents
I. Attach Importance to Power Battery Full Life Cycle Asset Management ..... 27
1. The key role of power battery assets in EVs ...... 27
2. Managing power battery assets well will increase the lifecycle value 39
3. Technology and model innovaton will promote the effective management of power batteries throughout the lifecycle ...... 44
II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle ...... 47
1. Significance and present situation of innovative development at the R&D and production stage ...... 47
2. Significance and present situation of innovative development at the in- vehicle use stage ...... 59
3. Innovative Development Significance and Present Situation of Recycling ...... 77
4. Innovative Development Significance and Present Situation of the Full Life Cycle Data Platform ...... 112
III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries ...... 124
1. Deficiency of policies and regulations...... 124
2. Deficiency of standards ...... 130
3. Technical bottlenecks ...... 137
4. Obstacles to commercialization ...... 140
IV. Recommendations for Promoting the Effective Life Cycle Asset Management of Power Batteries ...... 148
1. Improve relevant policies ...... 148
2. Refine industry standards ...... 150
3. Support technological innovations ...... 151
Research on Power Battery Full Life Cycle Asset Management
4. Promote commercialization ...... 152
Contents
Contents of Figures
Figure 1: The materials of EVs as a percentage of vehicle costs released in August 2020 ...... 27 Figure 2: Comparison of average service life of in-vehicle power batteries and EVs ...... 28 Figure 3: Analysis of safety accidents of EVs across the nation as of the end of 2019 ...... 29 Figure 4: Description of safety management strategies for three types of power batteries ...... 30 Figure 5: Classification of big data statistical analysis models of the national monitoring and management platform for NEVs by the end of 2019 ...... 31 Figure 6: Proportions of proved reserves of cobalt, lithium, natural graphite and rare earth by country in the world in 2019 ...... 34 Figure 7: Proportions of downstream consumption of cobalt and lithium in China in 2018 ...... 36 Figure 8: Distribution of average daily driving time of private new energy passenger vehicles in 2019 ...... 37 Figure 9: Distribution of average daily driving, parking and charging time of private EVs in Beijing in 2018...... 38 Figure 10: Flow chart of the full power battery lifecyle ...... 40 Figure 11: Forecasts for the size of cascade utilization and recycling markets in China in 2020-2025 ...... 41 Figure 12: Schematic diagram of separating the property rights of power batteries from those of vehicles...... 42 Figure 13: Forecasts for cobalt demand of power battries and recycled amount from power batteries in China (Upper) and forecasts for nickel demand of power batteries and recycled amount from power batteries in China (Lower) in 2020-2025 ...... 43 Figure 14: Main functions of BMS ...... 48 Figure 15: Comparison of three communication methods ...... 54 Figure 16: Schematic diagram of three communication methods ...... 55 Figure 17: Schematic diagram of ADI wireless BMS communication ...... 55 Figure 18: Lifecyle battery monitoring of ADI ...... 56 Figure 19: Development trends of power battery modules ...... 57 Figure 20: Battery pack module layouts of 10 popular vehicle models on the market
Research on Power Battery Full Life Cycle Asset Management
...... 58 Figure 21: Comparison of charging time and battery swapping time ...... 59 Figure 22: Cascade utilization in the battery swapping model ...... 60 Figure 23: New business formats of battery asset management ...... 61 Figure 24: Comparison of chassis battery swapping and separate battery swapping ...... 66 Figure 25: Graphics of chassis battery swapping and separate battery swapping .. 66 Figure 26: Overviews of battery swapping operators ...... 69 Figure 27: Ecosystem of battery swapping models ...... 70 Figure 28: Prices of NIO vehicle models ...... 74 Figure 29: NIO BaaS ...... 75 Figure 30: Capacity preservation and cycle life curve of lithium iron phosphate power batteries ...... 78 Figure 31: Summary of development stages of relevant policies in the power battery recycling industry in China ...... 81 Figure 32: Sales volume of NEV (left) and installed capacity of power batteries (right) in China from 2013 to 2019 ...... 88 Figure 33: A forecast for a total amount of retired power batteries in China ...... 88 Figure 34: Proportions of installed capacities of lithium iron phosphate and ternary power batteries in China from 2015 to 2019 ...... 90 Figure 35: A forecast for amounts of retired lithium iron phosphate and ternary power batteries in China from 2020 to 2022 ...... 91 Figure 36: Classified statistics of power battery recycling service stations in China92 Figure 37: Quantity statistics of power battery recycling service stations in different regions ...... 93 Figure 38: Relational graph between the cumulative sales volume of NEVs and the number of power battery recycling service stations in Guangdong, Shandong, Jiangsu, Zhejiang, Henan, Hebei, Guangxi, Shaanxi, Yunnan and Hainan from 2014 to May 2020 ...... 94 Figure 39: Cost composition analysis of dismantling retired power batteries ...... 96 Figure 40: Battery dismantling instructions prepared by a vehicle manufacturer .... 97 Figure 41: Demand forecast for electric bicycles in takeaway/express market in China from 2019 to 2023 ...... 100 Figure 42: Schematic diagram of cascade battery container energy storage by Huayou Cobalt in Daxing District, Beijing ...... 103 Figure 43: Network topology of energy storage system composed of different
Contents cascade batteries ...... 106 Figure 44: From June 2019 to June 2020, proportion of installed capacity of lithium iron phosphate power batteries in total installed capacity in China every month (upper) and proportion of lithium iron phosphate power batteries in total installed capacity of passenger vehicles and special vehicles (lower)...... 108 Figure 45: Recovery process flow diagram of all-components physical method of SDM ...... 110 Figure 46: Battery full life cycle data asset management...... 113 Figure 47: Functions of power battery data platform throughout the full life cycle . 114 Figure 48: CALB data platform architecture ...... 121 Figure 49: Classification items of CALB data platform battery requirements ...... 122 Figure 50: Big data early warning strategy related to CALB power battery failure mode ...... 122 Figure 51: The difference of different players in having access to battery data..... 126 Figure 52: Algorithm framework for estimating the status of BMS ...... 138 Figure 53: The existing production capacity of major recycling companies for power batteries as a percentage of the industry (incomplete statistics) ...... 145
Research on Power Battery Full Life Cycle Asset Management Contents of Tables
Table 1: Mandatory national standards related to safety of EVs in China ...... 30 Table 2: Main mineral resources used in the major components of EVs ...... 34 Table 3: Comparison of adjustable capacities of private EVs as energy storage devices and as transportation means ...... 39 Table 4: National policies related to BMS (incomplete statistics)...... 50 Table 5: Policies related to NEVs and power batteries in China that mention the standardization of power batteries (incomplete statistics) ...... 50 Table 6: Standards related to BMS (incomplete statistics) ...... 52 Table 7: Comparison of the peak-shaving and valley-filling effect between smart charging and different V2G technology adoption ratio in a residential quarter ...... 63 Table 8: Dynamic summary of policies related to battery swapping (incomplete statistics) ...... 64 Table 9: Summary of some key V2G technologies in China ...... 67 Table 10: Progress of domestic enterprises in battery swapping models (incomplete statistics) ...... 71 Table 11: Information statistics about EVs with battery swapping models among announced vehicle models by the end of September 2020 (incomplete statistics) ...... 72 Table 12: Summary of V2G demonstration projects in China in 2020 (incomplete statistics) ...... 76 Table 13: A case of V2G vehicle used by an employee in Beijing Zhongzai Mansion ...... 77 Table 14: Content and recovery value of recyclable materials in anode materials of power batteries ...... 79 Table 15: Main components and potential hazards of discarded power batteries ...... 80 Table 16: Main policies in China's power battery recycling industry summarized by issuing units (incomplete statistics) ...... 83 Table 17: Summary of national standards for power battery recycling issued and under study (incomplete statistics) ...... 85 Table 18: Comparison of major performance parameters of new lead-acid
Contents batteries and cascade lithium iron phosphate batteries ...... 99 Table 19: Calculation of 3-year service cost of electric bicycles powered by lead-acid batteries, new lithium batteries and cascade lithium batteries ...... 100 Table 20: Average annual costs of 219 transportation vehicles powered by new lead-acid batteries and cascade lithium iron phosphate batteries ...... 101 Table 21: Main financial indexes of a photovoltaic power station equipped with 2MWh energy storage system in Qinghai ...... 104 Table 22: Main recovery processes of waste lithium iron phosphate power batteries ...... 109 Table 23: Cases of upstream and downstream enterprises in the industrial chain making overall arrangements in recycling business (incomplete statistics) ...... 111 Table 24: Policies related to power battery data platform (incomplete statistics) ...... 116 Table 25: Construction of power battery data platforms (incomplete statistics) ...... 119 Table 26: Part of V2G-related policies in China (incomplete statistics) ...... 128 Table 27: The number of cell dimensions specified in GB/T 34013-2017 ..... 130 Table 28: Battery module dimensions specified in GB/T 34013-2017 ...... 130 Table 29: National standards related to battery swapping (incomplete statistics) ...... 132 Table 30: China's national standards for EV charging ...... 133 Table 31: National standards for the power battery data platforms (incomplete statistics) ...... 135 Table 32: Data required by national standards to be reported by platforms in real time ...... 135 Table 33: Assumed costs of battery swapping stations ...... 142 Table 34: Cost and benefit measurement for battery swapping stations ...... 142 Table 35: Analysis of the sensitivity of battery swapping stations' 10-year IRR to utilization rate and service fees ...... 143 Table 36: A benefit-cost comparison of recycling 1 ton of ternary batteries (NCM622) and 1 ton of lithium iron phosphate batteries using the wet method (based on the average market data in the first half of 2020)...... 146 Table 37: The recovery prices of ternary and lithium iron phosphate power batteries in a certain province during May-June 2020 ...... 146
I. Attach Importance to Power Battery Full Life Cycle Asset Management
I. Attach Importance to Power Battery Full Life
Cycle Asset Management
1. The key role of power battery assets in EVs
(1) Power battery, a major cost center of EVs
In recent years, the cost of power batteries has declined rapidly, which is reduced by approximately 70% in 2019 compared with that in 20141. However, power batteries are still the major source of costs of EVs at present. According to the cost structure of an EV released in August 20202, the material cost is the main source of the total cost, accounting for 86%; Power batteries are the main source of the material cost, accounting for 43%. In addition, the service life of power batteries in vehicles is inconsistent with that of the vehicle. Typically, the service life of in-vehicle power batteries is about 3-8 years, while the service life of EVs is over 8-15 years. Throughout the lifecycle of an EV, power batteries need to be swapped at least once, which further raises the cost ratio.
Figure 1: The materials of EVs as a percentage of vehicle costs released in August 2020
车身+底盘17% Vehicle body and chassis, 17% 内外饰16% Interior and exterior, 16% 智能网联系统16% Smart connectivity system, 16% 动力电池组总成43% Power battery pack, 43% 电机电控及其他三电系统部件8% Motor, electrical control units and other related components, 8%
Source: Publicly available information
1 https://www.gg-lb.com/ 2 "From whole scenario-based service to transparency of hardware cost, whom does GAC NIO 'break' with?", https://www.d1ev.com/, August 2020, https://www.d1ev.com/news/qiye/123739 27
Research on Power Battery Full Life Cycle Asset Management
Figure 2: Comparison of average service life of in-vehicle power batteries and EVs
单位：年 Unit: Year 电池车端使用寿命 Service life of in-vehicle power batteries 车辆使用寿命 Service life of EVs
Source: Publicly available information
(2) Power battery, a major safety center of EVs
Safety is the foundation for development of the EV industry, and the key is to ensure the safety of power batteries. According to the national statistics as of the end of 2019, 61% of the fire accidents of EVs are identified as being related to power batteries3. At present, the safety of power batteries as a key component is mainly guaranteed via intrinsic safety, passive safety and active safety in the industry, and the relevant mandatory national standards have been issued to enhance safety management.
3 Big Data and Operation Safety of NEVs (PPT), Sun Fengchun, January 2020
I. Attach Importance to Power Battery Full Life Cycle Asset Management
Figure 3: Analysis of safety accidents of EVs across the nation as of the end of 2019
使用问题，5% Use, 5% 碰撞，21% Crash, 21% 零部件故障，5% Component failure, 5% 浸水，4% Water immersion, 4% 外界原因，4% External reasons, 4% 电池问题，61% Battery issues, 61%
Source: Big Data and Operation Safety of NEVs (PPT), Sun Fengchun, Annual conference of China EV100 2020, January 2020
29
Research on Power Battery Full Life Cycle Asset Management
Figure 4: Description of safety management strategies for three types of power batteries
动力电池安全 Power battery safety 本征安全 Intrinsic safety 被动安全（防止热蔓延） Passive safety (to prevent heat spread) 主动安全 Active safety 电池材料体系设计优化 Optimization of battery material system design 电池结构设计优化 Optimization of battery structure design 智能制造 Intelligent manufacturing 提高制造一致性 Improvement of manufacturing consistency 机械防护 Mechanical protection 热管理系统优化 Optimization of thermal management system 电能防护 Electric energy protection 电池管理系统软件优化 Optimization of battery management system software 充电安全管理 Charging safety management
Source: Summary of the Seminar on Reevaluation of the Overall Development of Power Battery Industry, China EV100, August 2020
Table 1: Mandatory national standards related to safety of EVs in China
Standard No. Standard Name Released on Implemented on
GB 18384-2020 Electric Vehicles Safety 2020/5/12 2021/1/1 Requirements May 12, 2020 January 1, 2021 GB 38031-2020 Electric Vehicles Power Battery 2020/5/12 2021/1/1 Safety Requirements May 12, 2020 January 1, 2021
I. Attach Importance to Power Battery Full Life Cycle Asset Management
GB 38032-2020 Electric Buses Safety 2020/5/12 2021/1/1 Requirements May 12, 2020 January 1, 2021 Source: http://www.gb688.cn/bzgk/gb/index
(3) Power battery, a major data generation center of EVs
Driven by the development of Internet of Vehicles with EVs as a carrier and big data, exploration of the value and application of big data of new energy vehicles (NEVs) has attracted more and more attention, where the power battery data is an important part. The national monitoring and management platform of NEVs takes the battery data as a key item, and divides the statistical analysis model of big data of NEVs by the end of 2019 into five categories. Among them, data related to power batteries are separately listed, and data related to power batteries are also included in the other four categories. At present, the power battery big data analysis mainly uses the working parameters of battery cells and systems such as current, voltage and temperature collected by the battery management system in battery inconsistency analysis and fault diagnosis, battery thermal runaway warning, battery health estimation and other scenarios4; Meanwhile, a traceability lifecycle data platform of power batteries is established.
Figure 5: Classification of big data statistical analysis models of the national monitoring and management platform for NEVs by the end of 2019
车辆静态信息（15大类84小类） Vehicle static information (15 categories and 84 subcategories) 车辆生产数据 Vehicle production data 车辆销售数据 Vehicle sales data 整车参数 Vehicle parameters
4 Overview of Application of Big Data Analysis Technology in the NEV Industry--Based on Big Data of NEV Operation, She Chengqi et al., Journal of Mechanical Engineering, October 2019 31
Research on Power Battery Full Life Cycle Asset Management
整车性能参数 Vehicle performance parameters 底盘信息 Chassis information 发动机信息 Engine information 驱动电机信息 Electric motor information 终端信息 End-user information 储能装置信息 Energy storage device information 整车企业 Vehicle manufacturers 运营单位 Operating unit 车辆用途 Vehicle use 车辆审核信息 Vehicle audit information 车辆运营信息 Vehicle operation information 燃料电池信息 Fuel cell information 动力蓄电池信息（11大类51小类） Power battery information (11 categories and 51 subcategories) 车辆生产数据 Vehicle production data 车辆销售数据 Vehicle sales data 车辆维修数据 Vehicle repair data 电池退役数据 Battery retirement data 换电入库数据 Warehousing data of swapped batteries 车辆换电数据 Battery swapping data 换电出库数据 Ex-warehousing data of swapped batteries 换电退役数据 Retirement data of swapped batteries 车型 Vehicle models 电池规格 Battery specifications 回收网点入库数据 Warehousing data of recycling service sites 运行信息（17大类88小类） Running information (17 categories and 88 subcategories) 单车信息 Single vehicle information 时间信息 Time information 状态信息 Status information 里程信息 Mileage information SOC信息 SOC information 充电信息 Charging information 位置信息 Location information 电流信息 Current information 电压信息 Voltage information 绝缘电阻 Insulation resistance 百公里耗电 Energy consumption per 100 kilometers 驱动电机 Electric motor 速度信息 Speed information 充电间隔 Charging interval 极值信息 Extremum information 充电量 Charging capacity 快慢充 Fast and slow charge 报警信息（7大类12小类） Alarm information (7 categories and 12 subcategories) 报警等级 Alarm level 报警类型 Alarm type 危险等级 Danger level 时间信息 Time information 报警状态 Alarm status 报警名称 Alarm name 报警处理信息 Alarm processing information 车辆使用特征（5大类112小类） Vehicle usage characteristics (5 categories and 112 subcategories) 车辆充电需求描述 Description of vehicle charging demand 车辆使用特征描述 Description of vehicle usage characteristics 车辆性能特征描述 Description of vehicle performance characteristics 充电场站特征描述 Description of charging station characteristics 车辆单次出行片段特征描述 Description of vehicle single trip fragmental characteristics
I. Attach Importance to Power Battery Full Life Cycle Asset Management
Source: Big Data and Operation Safety of NEVs, Sun Fengchun, Annual conference of China EV100 2020, January 2020
(4) Power battery, the scarce resource consumption center of EVs Compared with traditional fuel vehicles, EVs require new mineral resources such as lithium, cobalt, nickel and graphite, all of which are used in their power battery systems, and cobalt is the scarcest among mineral resources in China. According to the statistical data, the proved reserves of cobalt, lithium, natural graphite and rare earth in China accounted for 1%, 6%, 23% and 35% respectively of the world total in 2019. The reserves of cobalt and lithium in China are very scarce, while the reserves of natural graphite and rare earth account for a relatively large proportion in the world. The downstream consumption of cobalt and lithium mainly comes from batteries (including power batteries and 3C batteries). According to the statistical data, the proportions of batteries in the downstream consumption of cobalt and lithium reached 80% and 74% respectively in China in 20185. In the future, with the widespread use of EVs, the proportion of power batteries in the consumption of cobalt and lithium will increase.
5 The BP Statistical Review of World Energy 2020, BP, September 2020; Three Inheritances and One Change in the Cobalt Industry, PingAn Securities, March 2020; TA&A Ultra Clean: Join hands with CATL to Explore the Expecting Lithium Battery Business, Haitong Securities, March 2020 33
Research on Power Battery Full Life Cycle Asset Management
Table 2: Main mineral resources used in the major components of EVs
Main Components Main Mineral Resources Required
Power battery Lithium, nickel, cobalt, manganese, iron, aluminum, phosphorus, silicon, lead, graphite and titanium Motor Rare earth, gallium, iron, copper and aluminum
Electrical control system Palladium, gold, indium, germanium and silver
Vehicle body Magnesium, iron and aluminum
Source: Demand Outlook of Lithium, Nickel, Cobalt and Other Mineral Resources Under the Development of NEVs, Xing Jiayun et al., China Mining Magazine, December 2019
Figure 6: Proportions of proved reserves of cobalt, lithium, natural graphite and rare earth by country in the world in 2019
Source: The BP Statistical Review of World Energy 2020, BP, September 2020; Three Inheritances and One Change in the Cobalt Industry, PingAn Securities, March 2020
钴储量 Cobalt reserves 其它，6% Other countries, 6% 中国，1% China, 1% 马达加斯加，2% Madagascar, 2%
I. Attach Importance to Power Battery Full Life Cycle Asset Management
加拿大，3% Canada, 3% 赞比亚，4% Zambia, 4% 俄罗斯，4% Russia, 4% 菲律宾，4% Philippines, 4% 古巴，7% Cuba, 7% 澳大利亚，17% Australia, 17% 刚果（金），52% The Democratic Republic of the Congo, 52% 锂储量 Lithium reserves 其它，2% Other countries, 2% 巴西，1% Brazil, 1% 津巴布韦，1% Zimbabwe, 1% 美国，4% United States, 4% 中国，6% China, 6% 阿根廷，11% Argentina, 11% 澳大利亚，18% Australia, 18% 智利，56% Chile, 56% 天然石墨储量 Natural graphite reserves 中国，23% China, 23% 其它，37% Other countries, 37% 马达加斯加岛，1% Madagascar, 1% 墨西哥，1% Mexico, 1% 印度，3% India, 3% 俄罗斯，5% Russia, 5% 莫桑比克，8% Mozambique, 8% 巴西，23% Brazil, 23% 稀土储量 Rare earth reserves 中国，35% China, 35% 其它，20.2% Other countries, 20.2% 泰国，0.7% Thailand, 0.7% 美国，1% United States, 1% 澳大利亚，3% Australia, 3% 印度，6% India, 6% 俄罗斯，17% Russia, 17% 巴西，18% Brazil, 18%
35
Research on Power Battery Full Life Cycle Asset Management
Figure 7: Proportions of downstream consumption of cobalt and lithium in China in 2018
钴消费 Cobalt consumption 其它，2% Others, 2% 高速钢，1% High-speed steel, 1% 玻璃陶瓷，2% Glass ceramics, 2% 化学催化剂，3% Chemical catalyst, 3% 磁性材料，3% Magnetic materials, 3% 高温合金，3% Superalloys, 3% 硬质合金，6% Hard alloys, 6% 电池，80% Batteries, 80% 锂消费 Lithium consumption 其它，10% Others, 10% 冶金，2% Metallurgy, 2% 聚合物，2% Polymer, 2% 润滑剂，5% Lubricant, 5% 玻璃陶瓷，8% Glass ceramics, 8% 电池，74% Batteries, 74%
Source: Three Inheritances and One Change in the Cobalt Industry, PingAn Securities, March 2020; TA&A Ultra Clean: Join hands with CATL to Explore the Expecting Lithium Battery Business, Haitong Securities, March 2020
(5) Power battery, the energy storage center of EVs
Power batteries are the energy storage units of EVs, which may serve as the power source, and enable EVs to become a mobile energy storage device, creating new business models such as V2G. Taking private passenger vehicles as an example, according to the statistical data of the National Monitoring and Management Center for New Energy Vehicles in 2019, 60% of private new energy passenger vehicles have an average daily driving time between 0-2
I. Attach Importance to Power Battery Full Life Cycle Asset Management hours, and only 14% of private passenger vehicles have an average daily driving time of more than 4 hours; In addition, according to the statistical data of the average parking, driving and charging time distribution of private EVs in Beijing in 2018, the average daily parking (non- charging) time accounts for 80%. With the penetration of private electric passenger vehicles in the future, their potential role as mobile energy storage devices will gradually attract attention.
Figure 8: Distribution of average daily driving time of private new energy passenger vehicles in 2019
Source: Big Data and Operation Safety of NEVs (PPT), Sun Fengchun, Annual conference of China EV100 2020, January 2020
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Figure 9: Distribution of average daily driving, parking and charging time of private EVs in Beijing in 2018
平均全天出行时长, 6% Average daily driving time, 6% 平均全天充电时长, 14% Average daily charging time, 14% 平均全天停车（非充电）时长, 80% Average daily parking (non-charging) time, 80%
Source: Action Plans and Policy Recommendations on Vehicle Grid Integration in China, World Resources Institute, June 2020
I. Attach Importance to Power Battery Full Life Cycle Asset Management
Table 3: Comparison of adjustable capacities of private EVs as energy storage devices and as
transportation means
Private EVs as Transportation Means Private EVs as Energy Storage Battery Capacity Devices Daily Charging Proportion of Daily Discharging Proportion of Capacity Battery Capacity Capacity Battery Capacity (kWh) (kWh) 45kWh 9 20% 22.5 50%
60kWh 6 10% 36 60%
Source: Action Plans and Policy Recommendations on Vehicle Grid Integration in China, World Resources Institute, June 2020
2. Managing power battery assets well will increase the lifecycle value
(1) Power battery assets involve many stages R&D and production, in-vehicle use and recycling are three major stages of the power battery lifecycle. In the R&D and production stage, the upstream and downstream players in the industry chain, such as raw material manufacturers, power battery manufacturers and vehicle manufacturers, strive to reduce the production cost of power batteries and improve product performance through technological innovation in design and R&D, manufacturing and vehicle matching; In the in-vehicle use stage, the battery management system collects, processes and monitors the battery operation and charging data, to ensure battery safety, increase service life and optimize user experience; In the recycling stage, the retired power batteries are collected, stored, detected and disassembled. Qualified batteries are for cascade utilization, and unqualified batteries and those after cascade utilization are recycled, thus fully exploiting the use value of power batteries after being used in vehicles.
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Figure 10: Flow chart of the full power battery life cycle
研发生产 R&D and production 车端使用 In-vehicle use 回收利用 Recycling 材料厂商 Raw material manufacturers 电池厂商 Battery manufacturers 整车企业 Vehicle manufacturers 电池销售 Battery sales 车辆销售 Vehicle sales 运营第三方 Third-party operators 消费者 Consumers 提供服务 Provide services 充换电运营 Battery charging and swapping operations 保险金融 Assurfinance 电池回收 Battery recycling 回收网点 Recycling service sites 梯次利用企业 Cascade utilization enterprises 再生利用企业 Recycling enterprises 材料再制造 Material remanufacturing
Source: EV100plus
I. Attach Importance to Power Battery Full Life Cycle Asset Management
(2) Managing and operating power battery assets well will increase the full lifecycle value The coordinated development of recycling, R&D and production and in-vehicle use can help enhance the recycling efficiency. The retired in-vehicle power batteries usually have a high residual capacity, and recycling can give full play to the full lifecycle value of power batteries. According to estimates, the total market size of cascade utilization and recycling in China will reach about RMB13 billion by 2025. If the key demand for recycling is taken into consideration in the R&D and production and in-vehicle use data design stages of power batteries, the cascade utilization cost can be further reduced and the recycling rate of retired batteries can be further enhanced through standardization of batteries and data sharing, thus expanding the potential market size of recycling.
Figure 11: Forecasts for the size of cascade utilization and recycling markets in China in 2020-2025
单位：亿元 Unit: RMB 100 million 梯次利用市场规模 Cascade utilization market size 再生利用市场规模 Recycling market size
Source: EV100plus
Note: The prices of lithium, cobalt and nickel are the average market prices in the first three quarters of 2020. The coordinated development of R&D and production, in-vehicle use and recycling can help facilitate the exploration of new business models. At present, reducing the cost 41
Research on Power Battery Full Life Cycle Asset Management of power batteries is the key focus of enterprises in the industry chain. This can be achieved mainly through technological innovation, process improvement and large-scale production. For example, Tesla promised on the "Battery Day" held in September 2020 to reduce the battery cost by 56% in the next five years through anode/cathode material innovation, cell design innovation, large-scale/high-speed continuous motion assembly, and cell-to-vehicle integration6. Considering the in-vehicle use of batteries, the business model separating the property rights of batteries from those of vehicles and enabling third-party operators to manage the full power battery lifecycle has the following advantages: First, this may help promote standardization of batteries in the R&D and production stage, and lower the production cost of batteries; Second, this may reduce the initial purchase cost of vehicles; Third, enabling third-party operators to own the property rights of batteries may help facilitate recycling management of power batteries and prevent retired batteries from entering non- standard channels.
Figure 12: Schematic diagram of separating the property rights of power batteries from those of vehicles
电池企业 Battery manufacturers 消费者 Consumers 二手车交易 Second-hand vehicle trading 研发优化，提升质量 Seek optimization through R&D and improve quality 降低购车成本，解决里程焦虑 Reduce the purchase cost of vehicles and alleviate the range anxiety 减少电池衰减引起的残值损失 Reduce residual value loss caused by battery attenuation 降低成本，刺激销量 Reduce costs and stimulate sales 加强与电网能量互动 Strengthen energy interaction with power grids 电池一致性好，方便统一回收 Better consistency of batteries facilitates unified recycling 整车企业 Vehicle manufacturers 电网 Power grid
6 Tesla Holds 2020 Annual Meeting of Stakeholders and Battery Day, CICC, September 2020
I. Attach Importance to Power Battery Full Life Cycle Asset Management
回收利用 Recycling
Source: EV100plus
The recycling of power batteries throughout the lifecycle can help satisfy the demand for cobalt and nickel. According to the statistical data, China's dependence on foreign cobalt and nickel were up to 98% and 90% respectively in 20197. Effective recycling of discarded power batteries can alleviate China's demand for scarce resources used in power batteries to a certain extent. According to estimates, the recycled amount of cobalt and nickel from power batteries will be about 16,000 tons and 37,000 tons respectively in China by 2025, capable of satisfying 61% and 17% of cobalt and nickel demand of power batteries respectively in China in the current year.
Figure 13: Forecasts for cobalt demand of power batteries and recycled amount from power batteries in China (Upper) and forecasts for nickel demand of power batteries and recycled amount from power batteries in China (Lower) in 2020-2025
Source: CATARC and EV100plus
7 Analysis of the Situation of Strategic Mineral Resources, China Nonferrous Metals News, September 2020, http://www.chinania.org.cn/html/hangyeyanjiu/2020/0901/39606.html 43
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Effective management of power batteries throughout the full life cycle can help improve the produce application experience and reduce environmental pollution. In the future, the enhanced power battery lifecycle management system can monitor battery health in real time, remind users to carry out battery maintenance regularly, and generate early warning to battery safety; Moreover, the system can trace the origin of batteries, ensure batteries are recycled by standard organizations, and reduce the environmental pollution caused by discarded batteries. 3. Technology and model innovation will promote the effective management of power batteries throughout the lifecycle
Technology and model innovation in such major stages as R&D and production, in-vehicle use and recycling of power batteries can strengthen the coordinated development of all stages and improve the efficiency of asset operation and management throughout the lifecycle of power batteries.
(1) Innovation at the R&D and production stage is the foundation and underlying driving force for value increase of battery assets
Battery management system (BMS) is the steward of power batteries, and is a major guarantee of the performance, service life and value realization of batteries. BMS can monitor the power battery state, make assessments and decisions, ensure reliable operation of batteries, and extend the service life of batteries. With the widespread application of wireless BMS and the development of SOH and other key parameters, the in-vehicle use value of power batteries will be fully exploited.
Standardization of power batteries facilitates cost reduction across the industry chain and creates favorable conditions for exploring new business models. Battery standardization can sharpen the focus of battery manufacturers on product R&D and upgrade, give full play to the advantages of large-scale production, match better with the platform-based model development trend of vehicle manufacturers, provide a basis for promoting battery swapping, and enhance the recycling efficiency of batteries. The standardized development of batteries can reduce costs across the industry chain in a holistic manner.
(2) Innovation at the in-vehicle use stage is the key point and an important means for value realization of battery assets
Battery swapping can reduce the initial purchase cost of vehicles, improve user experience, and facilitate the effective management of power batteries throughout the
I. Attach Importance to Power Battery Full Life Cycle Asset Management lifecycle. By improving the battery swapping standards, increasing policy support and building the battery swapping industry ecosystem, such problems as high purchase cost, range anxiety and low residual value can be effectively resolved. This also contributes to the emergence of innovative business models such as the "battery bank", and helps explore the life cycle value of power batteries.
V2G can enable EVs to play the role as mobile energy storage devices, to bring economic benefits for users and power grids. The expansion of V2G pilot projects, improvement of V2G communication standard and establishment of a sound pricing mechanism in the electricity market will contribute to the large-scale use of EVs in the future, reduce cost of users and give full play to the value of batteries.
(3) Innovation at the recycling stage is a supplement and the final link for value realization of battery assets
Recycling can fully exploit the value of power batteries after being used in vehicles and achieve closed-loop management of battery assets. The value of power batteries throughout the life cycle can be maximized through the cascade utilization and material recycling of retired batteries in low-speed vehicles, energy storage, communication backup power, etc.
Improving the economy of cascade utilization and recycling by means of technology and model innovation is the way out for industry players. The economy of cascade utilization is improved mainly through the whole pack application of retired batteries, the exploration of subdivided application scenarios, and the innovation of cascade utilization control technology; The recycling economy of retired lithium iron phosphate batteries is enhanced mainly through process and technology innovation, and the retired 3C batteries are prevented from entering non-standard recycling channels by strengthening industry supervision.
(4) The construction of power battery data platforms helps improve the operation and management of battery assets
Provide guarantee for the regulation on lifecycle data of power batteries. The data platform can be used to manage every stage of the power battery lifecycle, such as battery production, use and recycling, to collect, process, analyze and monitor battery data assets, and to ensure the integrity and traceability of data assets.
Realize the comprehensive assessment of batteries and application of data about every stage of the power battery lifecycle. The supervision and analysis of platform data can help assess battery state in a scientific manner, ensure battery performance and safety,
45
Research on Power Battery Full Life Cycle Asset Management support informed decision-making for scenarios such as cascade utilization, and provide a basis for battery pricing, residual value evaluation and assurfinance products.
II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle 1. Significance and present situation of innovative development at the R&D and production stage
(1) High-performance BMS can enhance the efficiency of power battery management, and the standardized development of power batteries can reduce the lifecycle cost
BMS can effectively manage batteries, give full play to battery performance and extend the service life of batteries. As the "brain" of power batteries, BMS has many functions: First, by collecting information such as battery voltage and temperature, it can monitor battery changes in real time, make assessments and decisions on battery state of charge (SOC) and state of health (SOH), and reduce failures and safety accidents; Second, it can communicate with the vehicle controller or the battery charger to ensure that the battery can work scientifically and efficiently when it is used or charged, to give full play to the battery performance, and to minimize the unnecessary energy and value losses; Third, the BMS equalization technology can be used to reduce the inconsistency of single cells in the battery pack, and slow battery attenuation, thus extending the service life of batteries. This may help resolve the problem of the low residual value of second-hand NEVs due to battery attenuation.
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Figure 14: Main functions of BMS
SOC/SOH估算 SOC/SOH estimate 剩余容量估算 Residual capacity estimate 电池健康度估算 Battery health estimate 高精密容量积分 High precision capacity integral 电池安全管理 Battery safety management 过充/过放保护 Overcharge/overdischarge protection 过流/过温/低温保护 Overcurrent/over-temperature/low-temperature protection 故障诊断及预警 Fault diagnosis and early warning 热安全管理 Thermal safety management BMS主要功能 Main functions of BMS 电池参数监测 Battery parameter monitoring 电池电压 Battery voltage 电池电流 Battery current 电池温度 Battery temperature 均衡管理 Equalization management 基于电压模式的均衡 Voltage-based equalization 基于时间模式的均衡 Time-based equalization 基于SOC的均衡 SoC-based equalization 主动/被动均衡可选 Active/passive equalization options 其它功能 Other functions 低成本、低功耗 Low cost and low power consumption 历史数据记录 History record 级联灵活扩展 Cascade flexible expansion
Source: Publicly available information BMS can record battery usage information, and help enhance battery management efficiency by means of big data. Due to the complex application environment of power batteries and various influencing factors, it is very important to obtain abundant actual working condition data of batteries. On this basis, big data mining and analysis can help to master the regular characteristics of power battery use. On the one hand, the BMS technology can be verified and optimized by continuously recording data to enhance the battery management efficiency and give full play to the battery value. On the other hand, through analysis and integration of massive data, effectively assess the real battery state, and guide the R&D and production, in-vehicle use and recycling of power batteries. This is conducive to asset management and operation of the power battery lifecycle as well as the sound development of the battery industry chain. Standardization of power batteries can help reduce the R&D and production costs of vehicle manufacturers and battery manufacturers. For vehicle manufacturers, on the one hand, designing standardized batteries on an electric platform can better meet the power demand for different vehicle models by adjusting the number of batteries, thus reducing the repeated development cost of battery systems for different vehicle models; On the other hand, standardization of battery size and interface makes it easier to change suppliers, reducing the costs of changing suppliers and enhancing risk management of supply chain. 48 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
For power battery manufacturers, on the one hand, battery standardization helps enterprises to build standardized production capacity and accumulate standardized technologies, highlighting the cost reduction result brought by large-scale manufacturing. Studies show that on the basis of battery cell standardization, when the power battery production capacity doubles, the cost will be reduced by about 15%8; On the other hand, battery standardization facilitates product quality control, increases yield and consistency, reduces costs, and improves safety. Studies show that on the basis of battery cell standardization, the yield can increase by 0.57% through a single process, and the CPK value of the core battery cell process can increase from 1.33 to 1.679. Standardization of power batteries can create favorable conditions for exploring new business models in in-vehicle use and recycling. For the purpose of in-vehicle use, standardization of battery size and interface can enable one battery swapping station to satisfy the battery swapping needs of EVs of different models and of different vehicle manufacturers, which improves the efficiency and economy of battery swapping. For the purpose of recycling, battery standardization can enable cascade utilization service providers to test and assess the retired batteries in a unified and standardized manner, build a highly automated and standardized cascade battery disassembly and reassembly production line, and enhance the cascade utilization efficiency of battery backs to a certain extent, thus reducing the cost of cascade utilization service providers and improving the cascade utilization economy of retired batteries.
(2) China has a favorable policy environment for BMS technology innovation and encourages the standardized development of power batteries China has enacted policies to encourage BMS technology reserve and breakthrough and to strengthen its importance. The Mid- and Long-term Development Plan for Automobile Industry issued by the Ministry of Industry and Information Technology (MIIT) in May 2017 encouraged joint research on BMS and other technologies to accelerate the revolutionary breakthrough of power batteries; The Guidance Catalogue for Industrial Structure Adjustment (2019) issued by the National Development and Reform Commission (NDRC) in November 2019 stated that the development of in-vehicle power batteries, BMS and new energy vehicle parts should be encouraged, and the technologies related to assessment of the remaining service life and consistency of batteries should be supported; The Development Plan of New Energy Vehicle Industry (2021-2035) issued by the General Office of the State Council in November 2020 explicitly took batteries and management
8 A Corporate Survey 9 A Dialogue on Ten Years from 2010 to 2020 --Yang Rukun: Pain Points and Difficulties in Large-scale Manufacturing of Power Batteries, https://www.gg-lb.com, September 2020, https://page.om.qq.com/page/OHk7UpGWbXjG1szZ4v5x87xA0 49
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systems as one of the "three horizontals", and emphasized its importance in building a technical supply system of key components.
Table 4: National policies related to BMS (incomplete statistics)
Policy Name Issued by Issued on Related Content
Carry out joint research on key materials Mid- and Long-term MIIT, NDRC May 10, of power batteries, battery cells and BMS Development Plan for and the 2017 to accelerate the revolutionary Automobile Industry Ministry of breakthrough in power batteries. Science and Technology Guidance Catalogue for Encourage the development of in- Industrial Structure vehicle power batteries, BMS and new NDRC November Adjustment (2019) energy vehicle parts, and support the 6, 2019 technologies related to assessment of the remaining service life, consistency and residual value of batteries. Take batteries and management Notice on Issuing the systems, driving motors and power Development Plan of New Energy Vehicle The State November electronics, and intelligent and Industry (2021-2035) Council 2, 2020 connected vehicle technologies as "three horizontals", and build a technical supply system of key components.
Source: Publicly available information
Policies related to NEVs and power batteries in China also express support for standardization of power batteries. The Energy Saving and New Energy Vehicle Industry Development Plan (2012-2020) issued by the State Council in July 2012 mentioned that the standardization and serialization of power batteries and related spare parts and assemblies should be promoted; The Policy on Power Battery Recycling Technologies for Electric Vehicles (2015) issued by the NDRC and other four ministries in January 2016 mentioned that the country encouraged standardized constructure design of power batteries to facilitate cascade utilization and improve versatility of power batteries; The Implementation Plan for Promoting the Upgrade of Key Consumer Goods and Smooth Resource Recycling (2019-2020) issued by the NDRC and other two ministries in June 2019 mentioned that the platform-based and standardized development of batteries should be gradually realized to lower the cost of batteries.
Table 5: Policies related to NEVs and power batteries in China that mention the standardization
50 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
of power batteries (incomplete statistics)
Policy Name Issued by Issued on Related Content
Energy Saving and Strengthen the research on core technologies in key fields of New Energy Vehicle The State Council July 9, 2012 Industry Development NEVs, and promote the Plan (2012-2020) standardization and serialization of power batteries and related spare parts and assemblies.
Policy on Power NDRC, MIIT, the Encourage standardized Ministry of structure design of power Battery Recycling January 28, Environmental batteries, to improve versatility Technologies for 2016 Electric Vehicles Protection, the and facilitate cascade utilization (2015) Ministry of of power batteries. Commerce and the General Administration of Quality Supervision, Inspection and Quarantine Action Plan of March 1, Release, implement and Promoting the 2017 continuously improve the MIIT, NDRC, the Development of In- roadmap for standardization of Ministry of Vehicle Power Battery NEVs. Formulate and carry out Science and Industry the standards such as Technology and specifications and sizes of power the Ministry of batteries and product coding Finance rules.
Implementation Plan NDRC, the June 3, 2019 Significantly reduce the cost of for Promoting the Ministry of NEVs, accelerate the R&D and Upgrade of Key Ecology and industrialization of the new Consumer Goods and Environment generation of in-vehicle power Smooth Resource and the Ministry batteries, improve the energy Recycling (2019-2020) of Commerce density and safety of batteries, and gradually realize the platform-based and standardized development of batteries, to lower the cost of batteries.
Development Plan of Promote the development of The State Council November 2, New Energy Vehicle 2020 power batteries along the value Industry (2021-2035) chain, and establish a sound modular standard system of
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power batteries.
Source: Publicly available information
(3) National standards of BMS are updated and improved with technological progress
National standards of BMS such as technical conditions, functional safety and test methods are gradually updated and improved. In recent years, China has issued standards of BMS to unify and standardize its technical conditions, test methods, communication protocols, functional safety, etc., and has gradually updated and improved the standards with technological progress to ensure scientific assessment. Since 2020, three new national standards have been implemented or will be implemented soon. Compared with QCT 897-2011, GB/T38661-2020 has been greatly supplemented and updated--the electromagnetic compatibility test, electrical environment adaptability test, and SOP estimation precision test method are added; the SOC estimation precision, total voltage and current, and temperature environment tests are improved. The national standard entitled the Functional Safety Requirements and Test Methods for Battery Management System of Electric Vehicles and issued in September 2020 helped to strengthen the understanding and application of functional safety technology in the new energy vehicle industry, and reduce and even avoid safety accidents such as smoking, fire and explosion10.
Table 6: Standards related to BMS (incomplete statistics)
Standard Name Status Effective on Main Content
QCT 897-2011 Technical Test items include state parameter precision, Specifications of Battery SOC estimation precision, battery fault Management System for Implemented July 1, 2012 diagnosis, electrical environment Electric Vehicles adaptability, etc. Environmental adaptability involves temperature environment, vibration and electromagnetic compatibility.
GB/T 31467.3-2015
Lithium-ion Traction The safety tests of over-temperature, Implemented May 15, 2015 Battery Pack and System overcharge and overdischarge protection for Electric Vehicles--Part requires the battery management system 3: Safety Requirements to perform its functions. and Test Methods
10 "The State Administration for Market Regulation (Standardization Administration) approved the release of a number of important national standards", September 2020, http://www.samr.gov.cn/xw/zj/202009/t20200928_322044.html 52 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
It is used to manage the charging process, GB/T 27930-2015 which involves physical connection of Communication Protocols charger, low voltage auxiliary power-on, Between Off-board Implemented January 1, shake-to-charge, charging parameter Conductive Charger and 2016 configuration, charging and end of charge. Battery Management System for Electric Vehicles
GB/T 32960.3-2016 Standardize and unify the communication Technical Specifications protocols of BMS, including of Remote Service and Implemented October 1, communication connection, data packet Management System for 2016 structure and definition, data unit format Electric Vehicles--Part 3: and definition, etc. Communication Protocol and Data Format Compared with QCT 897-2011, add
GB/T 38661-2020 electromagnetic compatibility test,
Technical Specifications electrical environment adaptability test, Implemented October 1, of Battery Management SOP estimation precision test method, 2020 System for Electric etc. and add contents to SOC estimation Vehicles precision, total voltage and current, temperature environment test, etc.
Compared with GB/T 31485-2015 and GB 38031-2020 Electric To be Vehicles Power Battery January 1, GB/T 31467.3-2015, the tests related to Implemented 2021 Safety Requirements BMS are added with overcurrent protection test and thermal diffusion test. GB/T 39086-2020 To be Stipulate the functional safety Functional Safety April 1, 2021 Implemented requirements and test methods for battery Requirements and Test management system of EVs. Methods for Battery Management System of Electric Vehicles
Source: Publicly available information
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(4) Innovative BMS technology and standardized power battery modules have been preliminarily applied in the market
1) Many enterprises have deployed and applied wireless BMS
With the smart and connected development of EVs, wireless BMS begins to receive much attention. At present, the Battery Control Unit (BCU) and the Battery Measure Unit of BMS typically adopts CAN communication and daisy-chain communication, both of which have their own advantages, but are still constrained by the wiring harness layout and connection reliability of the battery pack. Compared with the conventional BMS communication method, wireless BMS communication has such advantages as low power consumption, less wiring harnesses in the pack and flexible layout. Furthermore, less wiring harnesses and simplified battery pack structure can lower the assembly cost and reduce the weight, thus improving the energy density of the entire battery pack. To this end, wireless BMS is receiving overwhelming attention from the industry, and is considered as a major trend in the future. It is predicted that the number of EVs adopting wireless BMS will reach 1 million in the coming five years.
Figure 15: Comparison of three communication methods
CAN通信 CAN communication 优点：技术成熟，稳定性强 Advantages: mature technology and greater stability 缺点：占用空间大，功耗高，成本高 Disadvantages: large footprint, high power consumption and high cost 无线通信 Wireless communication 优点：功耗低，布置灵活，减少包内线束，减少接插件失效 Advantages: low power consumption, flexible layout, less 风险，降低组装成本 wiring harnesses in the pack, less connector failures and less assembly cost 缺点：芯片成本较高 Disadvantage: high chip cost 菊花链通信 Daisy-chain communication 优点：成本低，技术相对成熟 Advantages: low cost and relatively mature technology 缺点：稳定性一般，不适合长距离通信 Disadvantages: poor stability, and unsuitable for long-distance communication
Source: Publicly available information
54 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Figure 16: Schematic diagram of three communication methods
无线 Wireless 菊花链 Daisy chain
Source: Publicly available information
Note: Battery Control Unit (BCU) and Battery Monitor Unit (BMU)
Companies like Analog Devices, Inc. (ADI) and SVOLT have had presence in the wireless BMS sector. ADI, a global semiconductor company, acquired Linear Technology, a company specializing in power management technology, and partnered with vehicle manufacturers like General Motors to carry out wireless BMS projects; ADI also launched the wireless battery management system and platform, which can collect and analyze data of battery manufacturing, storage, transportation, in-vehicle use and recycling throughout the lifecycle, improve the precision of battery monitoring, and help maximize the battery value. In 2019, SVOLT and Sensata Technologies signed a memorandum of cooperation and pre- research on wireless BMS communication to jointly develop wireless BMS communication technology. It is expected that the first mass-produced wireless BMS product will be launched in 2021.
Figure 17: Schematic diagram of ADI wireless BMS communication Source: ADI survey
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Figure 18: Lifecyle battery monitoring of ADI
Source: ADI, http://www.breadtalk.com.cn
2) Standardized battery modules have indicated a trend towards application in commercially available vehicles For the purpose of reducing costs, vehicle manufacturers, battery manufacturers, industry associations and other major industry players have been trying to standardize the size of power battery cells and modules, and their efforts can be divided into three stages: At the first stage, in the early development of NEVs, most EVs are designed based on the "oil-to-electricity" platform, resulting in many sizes of battery cells and modules and increased battery development and manufacturing costs. Against this background, the Verband der Automobilindustrie (VDA) introduced the standard of battery cell size series, and the industry began to explore battery standardization11; At the second stage, Volkswagen developed the standardized 355 Module based on VDA standard and applied it to E-golf and Audi Q7 e-tron vehicle models, which defined the development path of battery module standardization. CATL, a China-based power battery enterprise, also adopted the standard to develop an independent 355 Module (compatible with prismatic, pouch and cylindrical cells), which is also the most widely used standardized module for EVs in China12; At the third stage, with the iterative upgrade of structural design and production process, the standardized battery module is developing towards large sizes. The representative module is the 590 Module developed by Volkswagen based on the Modular Electrification Toolkit (MEB) (compatible with prismatic, pouch and cylindrical cells), while the power battery enterprises in
11 "Evolution from Blade Battery Cell to 590 Module -- Interpretation of Evolution of Power Battery Products", https://www.gg-lb.com, December 2019, https://www.gg-lb.com/art-39784.html 12 "Logic and History of 355-390-590 Modules and CTP Evolution", https://www.oktesla.cn/author/zhihuaqiche, April 2020, https://www.xchuxing.com/article-52208-1.html 56 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
China have made further structural optimization on the basis of standardized large-size modules. For example, the CTP battery introduced by CATL and SVOLT, and the blade battery introduced by BYD have further reduced the battery manufacturing cost. Compared with the conventional battery pack, the battery pack using CTP technology of CATL has increased its volume utilization rate by 15-20%, production efficiency by 50% and energy density by 10-15%13.
Figure 19: Development trends of power battery modules
能量密度 Energy density 安全性 Safety 成本 Cost 动力电池模组发展趋势 Development trend of power battery modules 从电池多样化向电芯标准化发展 Development from diversification to standardization 德国VDA电芯尺寸标准化 Standardization of battery cell sizes of VDA 从电池模组非标准化向小尺寸模组标准化发展 Development from non-standardization of battery modules to standardization of small-size battery modules 大众355模组 355 Module of Volkswagen 从小尺寸模组标准化向大尺寸模组标准化发展 Development from small-size battery module standardization to large-size battery module standardization 大众590模组 590 Module of Volkswagen 宁德时代等CTP、比亚迪刀片 CTP battery of CATL and blade battery of BYD
Source: In-depth Report on Cell-to-Pack Technology, BOC International (China), May 2020
The structural layout of EV batteries available on the Chinese market can also indicate the trend of power battery modules gradually transitioning from non-standardization to standardization. McKinsey disassembled and analyzed ten popular battery electric vehicles (BEVs) on the Chinese market, looking at vehicles from both incumbent vehicle manufacturers and new players, including BYD, GAC, Geely, NIO and Weltmeister. In terms of battery module size and layout, the 3-D models of McKinsey show that 5 of the benchmarked models use multiple-sized battery modules, 3 of the benchmarked models use the grid layout of modules with the same size, and 2 models use the row layout of modules
13 In-depth Report on Cell-to-Pack Technology, BOC International (China), May 2020 57
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with the same size14, which basically reflects that with the development trend of vehicles from the "oil-to-electricity" platform to a brand-new platform of "electrification", battery modules are gradually upgraded from non-standardization to small-size standardization and then large-size standardization.
Figure 20: Battery pack module layouts of 10 popular vehicle models on the market
布局方式 Module layout 描述 Description 测试车型 Test vehicles 示例 Examples 网格布局 Grid 同等尺寸与形状均匀排列 Identical sized and shaped module Layout in equally spaced grids 车型1、3、9 Model 1, 3, 9 车型1 Model 1 行状布局 Row 基本同等尺寸与形状，均匀排成行 Mostly identically sized and shaped modules Layout in equally spaced row 车型2、5 Model 2, 5 车型5 Model 5 适应模块形状 Adapt to pack shape 多种尺寸与形状，根据模块形状和间距排列 Mostly multiple-sized and –shaped modules Arranged according to pack shape/varied module distance 车型4、6、7、8、10 Model 4, 6, 7, 8, 10 车型7 Model 7
Source: How to drive winning battery-electric-vehicle design: Lessons from benchmarking ten Chinese models, McKinsey, August 2020
14 How to drive winning battery-electric-vehicle design: Lessons from benchmarking ten Chinese models, McKinsey, August 2020 58 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
2. Significance and present situation of innovative development at the in-vehicle use stage
(1) The battery swapping model and the V2G model can all give full play to the advantages of centralized resource management
1) Use the battery swapping model to operate and manage power battery assets in a centralized manner, to improve the liquidity of battery assets and controllability of lifecycle management
Facilitate the purchase and use of EVs and the circulation of second-hand vehicles. First, reduce the purchase cost of consumers, help consumers avoid the high cost of battery maintenance and replacement. Consumers only need to pay the energy use fee to the battery swapping operators, which is more economical. Second, rapid battery swapping can alleviate the problems such as range anxiety and charging difficulties, facilitate travel and reduce charging safety risks. Third, in the battery swapping model, vehicles and batteries are separated. The separation of batteries, which is the most influential part of second-hand vehicle trading, simplifies residual value assessment, relieves the anxiety of value preservation, and further activates the consumption market of EVs.
Figure 21: Comparison of charging time and battery swapping time
交流电慢充 AC slow charging 大功率直流快充 High power DC fast charging 换电 Battery swapping 小于3min Less than 3 minutes
Source: Publicly available information
Battery swapping operators have obvious advantages in the delicacy operation and management of batteries. First, batteries are monitored, managed and maintained in a
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scientific manner, which can guarantee the consistency of batteries to the maximum extent, extend the battery life and enhance safety. Second, the peak-valley price difference can be leveraged for centralized charging, which can reduce the charging and leasing costs of batteries, while relieving the burden on power grids, consuming some renewable energy and giving full play the role of EVs as energy storage devices. Third, collection and analysis of operational data can be used for the informed assessment and circulation of battery value, and offer a reference for the financial and insurance affairs related to battery assets.
Help realize the controllable recycling of batteries and enhance cascade utilization of batteries. Battery swapping operators naturally own a battery recycling network, which can help resolve the current battery recycling chaos, avoid the disturbance of pricing and safety management of retired batteries caused by non-standard recycling enterprises, facilitate the controllable recycling of retired batteries in a centralized manner, and reduce the waste of battery assets. Moreover, through centralized management and big data analysis, promoting standardization of batteries in the battery swapping model can effectively maintain the consistency of batteries. According to battery state assessment, direct cascade utilization of batteries (private vehicles--commercial vehicles--logistics vehicles) can be realized at the vehicle end, and retired batteries can also be used in low-speed vehicles and energy storage fields later, enriching the battery usage scenarios and achieving a higher level of cascade utilization.
Figure 22: Cascade utilization in the battery swapping model
换电网络 Battery swapping network 私家车 Private vehicles 出租车 Taxi 网约车 Ride hailing vehicles 物流车 Logistics vehicles 低速车/储能 Low-speed vehicles/Energy storage
60 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Source: Publicly available information
Facilitate the emergence of new formats of battery asset management. Battery swapping can promote the balanced and healthy development of the interest chain and ecosystem of battery manufacturers, vehicle manufacturers, battery swapping operators and consumers, innovate green financial models such as the battery bank, and create new service formats, such as mobile battery swapping, so as to fully exploit the market potential of power battery assets throughout the lifecycle.
Figure 23: New business formats of battery asset management
社会资本 Social capital 金融机构 Financial institution 电池工厂 Battery factory 还款 Repayment 放贷 Offer loans 资金支持 Financial support 担保 Guarantee 还款 Repayment 存（动力电池） Deposit (power battery) 电池银行（电池资产管理） Battery bank (battery asset management) 技术支撑 Technical support 还款 Repayment 贷（动力电池） Borrow (power battery) 换电技术 Battery swapping technology 技术支撑 Technical support 换电站 Battery swapping station 方案设计 Scheme design 整车制造商 Vehicle manufacturer 换电服务 Battery swapping service 换电费用 Battery swapping cost 用户 User 裸车销售 Naked vehicle sales
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购车费用 Vehicle purchase cost
Source: NDRC and First Technology
2) Use the V2G model to exploit the value of centralized management of power battery charging and discharging, to bring economic benefits to users and power grids
The coordinated development of vehicles and power grids lays a good foundation for the large-scale promotion of EVs in the future. With the large-scale development of EVs, the power consumption of vehicles will also increase. The disorderly charging of EVs will increase the peak load of the entire power grid and aggravate the peak-valley difference of the load. The State Grid Energy Research Institute predicts that the peak load in the area operated by the State Grid will increase by 153 million kilowatts by 2030, equivalent to 13.1% of the peak load in the area in 203015. The coordinated development16 of EVs and power grids can slow down the construction of urban power grids and the transformation of local power distribution networks, reduce the EV usage cost, and enhance the competitiveness of EVs.
Users can reduce the EV usage cost by utilizing the benefits from participating in power grid services in the V2G model. By participating in related services of power grids in the V2G model, EV users can obtain economic benefits and reduce the EV usage cost. Under the circumstance of implementing the peak-valley price mechanism, EV users can feed the local power grid during peak periods, charge EVs during valley periods, and get benefits through price differences. In addition, in Europe and the US, the V2G frequency regulation model can bring economic benefits to users because of a low requirement for auxiliary market access and a high marketization level. For example, according to the price level of electricity market in the US, Germany and other developed countries, an EV is able to earn US$500-2,000/year in the V2G frequency regulation model, which is higher than the income of demand response of US$100/year (excluding cost)17. Furthermore, in the V2G model, if the ideal control strategy of shallow charge and shallow discharge is realized for power batteries, the battery life can be extended to a certain extent, and the use value of the batteries in vehicles can be further explored.
V2G plays a better role in peak-shaving and valley-filling, and facilitates the friendly interaction between EVs and power grids. For power grids, EVs adopting the V2G technology can be used as mobile energy storage devices to participate in power grid services.
15 Impact of Electric Vehicle Development on Power Distribution Network and Benefit Analysis, State Grid and Natural Resource Defense Council, July 2018 16 Vehicle-grid integration involves Smart Charging (V1G) and Vehicle-to-Grid (V2G). In the V1G model, economic or smart control measures of peak-valley prices are leveraged to alleviate the impact of disorderly charging of EVs on power grids, and such EVs support only the charging function. In the V2G model, EVs are regarded as energy storage devices and can feed power grids. 17 Action Plans and Policy Recommendations on Vehicle Grid Integration in China, World Resources Institute, June 2020 62 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Research indicate that compared with smart charging (V1G), V2G plays a better role in peak- shaving and valley-filling; Especially when there is a considerable amount of EVs, V2G can achieve a better peak-shaving and valley-filling effect than smart charging by mobilizing fewer EVs, and bring benefits to power grids. According to calculation of a research, taking an old residential quarter with 1,907 households as an example, the rated capacity of the corresponding 10kV distribution transformer is about 4,200kW, and the current highest load rate is 54% (close to the average level of 10kV load rate in the city); Assuming that the private vehicles in this residential quarter are all electric ones, 10% of these vehicles adopting the V2G technology can achieve the same peak-shaving and valley-filling effect as 50% of these vehicles participating in smart charging, and 20% of these vehicles adopting the V2G technology can achieve the same peak-shaving and valley-filling effect as 100% of these vehicles participating in smart charging.
Table 7: Comparison of the peak-shaving and valley-filling effect between smart charging and
different V2G technology adoption ratio in a residential quarter
(All are EVs)
Adoption rate Maximum Peak-valley Maximum load Reduced of EV load load difference rate of capacity of power owners distribution (kW) (kW) distribution transformer network expansion
(kW)
Disorderly 0% 4225 3026 101% - charging
25% 3752 2290 89% 474 Smart 50% 3225 1734 77% 866 charging
(V1G): 100% 2251 752 54% 866 smart control
10% 3093 1642 74% 866
V2G 20% 2225 749 53% 866
40% 2033 543 48% 866
Source: Quantifying the Grid Impacts from Large Adoption of Electric Vehicles in China, World Resources Institute, June 2020
Note: In the model, it is assumed that the SOC of the vehicle is no less than 30% at every moment, and the charging and discharging power of a single vehicle is set within 7kW.
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(2) China has strengthened policy support for battery swapping Recently, battery swapping has attracted great attention from the country and the industry. As one of the energy supply modes for EVs, battery swapping has developed for a long time. With the EVs entering the post-subsidy era, China has strengthened its policy support for battery swapping. In April 2020, the MIIT and other three ministries and commissions jointly issued the Notice on Improving the Financial Subsidy Policy for the Promotion and Application of NEVs, pointing out that the development of new business models such as "vehicle-battery separation" should be supported, and vehicles that support battery swapping should be exempt from the new energy subsidy policy that subsidies for the NEVs must be priced under RMB 300,000. In May 2020, the 333rd batch of Announcement of Road Motor Vehicle Manufacturers and Products issued by the MIIT mentioned the new product names of battery-swapping electric multi-purpose passenger vehicles for the first time, and the expression of "vehicle-battery separation" was introduced in other parts of the announcement. This announcement provided certain policy support for the battery swapping development. In November 2020, the General Office of the State Council issued the Development Plan of New Energy Vehicle Industry (2021-2035), which clearly pointed out that "the application of battery swapping model should be encouraged".
Table 8: Dynamic summary of policies related to battery swapping (incomplete statistics)
Time Key Event Related Content
The State Council issued the Take charging as the main priority, and July 2012 Energy Saving and New Energy explore business models such as Vehicle Industry Development charging and battery swapping Plan (2012-2020) services. The NDRC and other ministries Continue to explore the application of December issued the Action Plan for battery swapping of EVs in specific 2018 Improving Ability to Ensure the fields such as taxi and rental vehicle. Charging of NEVs
The NDRC issued the Put forward the manufacturing of March 2019 Guidance Catalogue for Green battery swapping facilities, including the Industries (2019 edition) construction and operation of battery swapping facilities. The NDRC and other ministries Draw on the battery swapping model issued the Implementation Plan and application experience in the public June 2019 for Promoting the Upgrade of Key service sector, and encourage Consumer Goods and Smooth enterprises to develop NEV products Resource Recycling (2019-2020) with the integration of battery charging and swapping, flexible battery configuration as well as long and short
64 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
cruising ranges.
November The NDRC issued the Guidance 2019 Catalogue for Industrial Structure Encourage the development of fast Adjustment (2019 edition) charging and battery swapping facilities. April 2020 The MIIT issued the Key Points of Require to complete the review and Standardization of NEVs/Smart approval of battery swapping safety and Connected Vehicle in 2020 requirements and standards for EVs. The MIIT and other three ministries and commissions jointly Vehicles that support battery swapping April 2020 issued the Notice on Improving should be exempt from the new energy the Financial Subsidy Policy for subsidy policy that subsidies for the the Promotion and Application of NEVs must be priced under RMB NEVs 300,000. Report on the Work of the Expand "build charging piles" to "build May 2020 Government in 2020 more battery charging and swapping facilities". The General Office of the State
November Council issued the Development Encourage the adoption of the battery 2020 Plan of New Energy Vehicle swapping model. Industry (2021-2035).
Source: Publicly available information (3) China has built up a reserve for key technologies of battery swapping and V2G
Two key technologies, chassis battery swapping and separate battery swapping, are developing synchronously. At present, there are two technology routes for battery swapping: One is chassis battery swapping represented by BAIC BJEV and NIO, and the other is separate battery swapping represented by FIRST TECHNOLOGY. Both routes have their advantages and application scenarios.
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Figure 24: Comparison of chassis battery swapping and separate battery swapping
底盘换电 Chassis battery swapping 概念：将位于汽车底部的电池包整体进行更换 Concept: swap the whole battery pack located at the bottom of the vehicle 优点：底盘改动小，电池密封性好，汽车安全性更佳；换 Advantages: less change in chassis, good battery 电自动化程度高，时间短 sealing and better vehicle safety; High degree of automation and short time for battery swapping 缺点：标准化困难，维修成本高 Disadvantages: difficulty in standardization and high maintenance cost 分箱换电 Separate battery swapping 概念：将电池分为若干个标准模块，进行更换 Concept: divide the battery into several standard modules and swap them respectively 优点：兼容性好，易于标准化；换电方式灵活，人工自动 Advantages: good compatibility and easy to 化均可；可以直接梯次利用 standardize; Flexible battery swapping modes, either manual or automatic; allow direct cascade utilization 缺点：底盘改动设计要求高，周期长；电池分散安装，存 Disadvantages: high requirements and long cycle for 在一定的安全隐患 changing and designing the chassis; separate installation of batteries may lead to safety hazards Source: Publicly available information
Figure 25: Graphics of chassis battery swapping and separate battery swapping
66 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
底盘换电 Chassis battery swapping 分箱换电 Separate battery swapping
Source: Patents CN206436985U and CN109095382A
Research institutes and enterprises join hands to strengthen the research on key V2G technologies. At the early stage of research on key V2G technologies in China, universities and research institutes were main players. In recent years, with the promotion of EVs and the progress of related technologies, enterprises have strengthened cooperation with universities and research institutes in innovative research on key V2G technologies. At present, the research on key V2G technologies in China mainly involves the research on application of EVs as energy storage devices, the research on the schedulable capacity of EVs, the research on the impact of EVs as mobile energy storage devices on power distribution network and coordinated control, etc.
Table 9: Summary of some key V2G technologies in China
Research Research Institutes Domestic Research Cases Field
Put forward a charging load forecasting method
based on the use and parking characteristics of EVs
and taking into consideration the spatial and temporal
Tsinghua University distribution, to build modeling and simulate the Research on moving load of EVs on the basis of the Parking application of Generation Rate Model and Monte Carlo Simulation EVs as (MCS). energy Put forward an efficient billing service system based storage Southeast University on billing reservation and billing pile binding service, devices which could accelerate the average charging speed of EVs and enhance the average instant utilization rate of charging stations. Put forward a mobile energy storage system model Beijing Jiaotong of EVs based on grid constraints, battery University constraints and vehicle owners' needs, and then studied the auxiliary services of EVs participating in power grid frequency regulation.
Southeast University,
State Grid Jiangsu Comprehensively analyzed the travel characteristics
Electric Power Co., and charging characteristics of EV users, and Research on calculated the feasible domains excluding the the Ltd. and China Electric charging scheduling time and charging power of schedulable Power Research EVs. Institute
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capacity of According to the charging characteristics of EVs, EVs Zhejiang University of established the time-dependent SOC utilization Technology model of EVs, and finally calculated the available capacity of EVs in a day. According to the mobile energy storage Tongji University and characteristics of EVs, put forward an engineering Shanghai Electric configuration solution of EVs as energy storage Group devices under microgrid, thus reducing the Research on operating costs of microgrid. the impact of Within the constraints on batteries, power grids and North China Electric EVs as vehicle owners, put forward a control strategy of Power University and mobile EVs as distributed energy storage devices, which China Electric Power energy Research Institute could not only improve the schedulability of EVs as storage energy storage devices, but also reduce the devices on switching times of charging and discharging of EVs, power thus preventing the excessive attenuation of EV distribution batteries. network and State Grid Central coordinated China Electric Power Based on the travel characteristics of EVs, battery control Regulation Branch state and users' desire for participation, put forward Center, Southeast a large-scale smart charging strategy of EVs. University and State Grid Jiangsu Electric Power Co., Ltd. Source: Summary of Research on Key V2G Technologies of Electric Vehicles, Wan Xiong et al., http://www.automannet.com, January 2020
(4) Various main players make overall arrangements for battery swapping models, and the construction of V2G demonstration projects has been accelerated A number of enterprises have made overall arrangements for battery swapping models, and the leading effect is obvious. At present, the major battery swapping operators are Aulton, NIO and FIRST TECHNOLOGY. By September 2020, the number of battery swapping stations available in China had reached 525. Based on cloud data platform, energy supplement network (battery swapping network) and terminal products, the battery swapping operators have basically built an ecosystem of battery swapping models. Such enterprises as BAIC BJEV, Geely, SAIC and State Grid Electric Vehicle Service Co., Ltd. have all taken actions in the field of battery swapping. In September 2020, 20 units including China Association of Automobile Manufacturers (CAAM), BAW, SAIC and CATL signed the Joint Statement on Building an Ecosystem of "Vehicle-Battery Separation" Model for NEVs, marking the formal establishment of the ecosystem of vehicle-battery separation.
68 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Figure 26: Overviews of battery swapping operators
换电站保有量 The number of battery swapping stations available 276座 276 stations 155座 155 stations 94座 94 stations 合作车企 Cooperative vehicle manufacturers 北汽新能源、广汽、长安等 BAIC BJEV, GAC, CHANGAN, etc. 蔚来 NIO 东风、力帆、时空电动等 DONGFENG, LIFAN, SKIO, etc. 主要应用领域 Main applications 出租车、网约车 Taxi, online-taxi 私人消费市场 Private consumption market 整车厂、运力管理公司 Vehicle manufacturers and capacity management companies
Source: China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA) and publicly available information
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Figure 27: Ecosystem of battery swapping models
电池厂家 Battery manufacturers 供应电池 Supply batteries 整车企业 Vehicle manufacturers 供应电池 Supply batteries 换电站运营商 Battery swapping station operators 销售车辆 Sell vehicles 消费者 Consumers 换电网络 Battery swapping network 云端数据平台 Cloud data platform 换电服务 Battery swapping services 电动汽车 Electric vehicles (EVs)
Source: Publicly available information
70 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Table 10: Progress of domestic enterprises in battery swapping models (incomplete statistics)
Enterprises Progress in Battery Swapping
In 2017, BAIC BJEV and Aulton released the "Optimus Prime Plan". BAIC BJEV By the end of 2019, BAIC BJEV had put about 16,000 NEVs with a battery swapping model on the markets in 15 cities such as Beijing and Xiamen. In December 2019, FIRST TECHNOLOGY completed the Series B FIRST TECHNOLOGY Financing from Yunhe Capital as the investor, which was mainly used to lay battery charging and swapping stations and to develop new vehicle models. NIO released Nio Power battery swapping technology for private NIO vehicles in 2017, and launched BaaS service in August 2020. At present, it has put more than 17,000 vehicles with a battery swapping model on the market. Aulton has established a relatively complete battery swapping service Aulton platform and cooperated with BAIC BJEV, GAC, CHANGAN, SoftBank, etc. Geely registered the trademark of "E-energee", held a news Geely conference on the battery swapping model in September 2020, and launched its first smart battery swapping station in Chongqing. In May 2020, SAIC Roewe announced that its new vehicles with R- SAIC Logo would support the battery swapping model and adopt a new battery architecture of "chargeable, replaceable and upgradeable". CATL CATL joins hands with BAIC BJEV and Aulton to develop the vehicle models with battery swapping models, and makes heavy trucks with battery swapping models with FOTON.
In July 2020, it signed a Framework Agreement on Deeper Strategic State Grid Cooperation with BAIC Group, which covered battery pack business, Electric construction and operation of battery swapping stations, etc., aiming at Vehicle building 100 battery swapping stations by the end of June 2021 to serve Service Co., no less than 10,000 vehicles with battery swapping models nationwide. Ltd.
GAC In August 2020, “Aion S”, a battery swappable EV model was launched.
NETA NETA is cooperating with CATL, HD GLABAT and other battery manufacturers, and plans to launch the vehicle-battery separation mode.
Source: Publicly available information
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Table 11: Information statistics about EVs with battery swapping models among announced
vehicle models by the end of September 2020 (incomplete statistics)
Announce Enterprise Trademark Generic Product Model Product Name d Batch Name Name
JAC GROUP Battery swappable 333 NIO ES6 HFC6483EC SEV2-W multi-purpose passenger BEV JAC GROUP Battery swappable 333 NIO ES6 HFC6483EC SEV-W multi-purpose passenger BEV JAC GROUP Battery swappable 333 NIO ES8 HFC6502EC SEV5-W multi-purpose passenger BEV Jiangxi Battery swappable 334 BEIJING / CH5031XXY Changhe BEVRA3C6 electric van Automobile Co., Ltd. Kangdi Battery swappable 334 MAPLE MAPLE JWT6470SE Electric V01 multi-purpose Vehicle 60v passenger BEV Jiangsu Co., Ltd. Chengdu Battery swappable 334 DAYUN / CGC5045XX Dayun YBEV2Z5 electric van Automobile Co., Ltd. (CDDY) Chengdu Chassis for battery 334 DAYUN / CGC1045EV Dayun 2Z5 swappable electric Automobile trucks Co., Ltd. (CDDY) JAC GROUP Battery swappable 335 JAC / HFC5045XX YSEV1 electric van
JAC GROUP Battery swappable 335 NIO EC6 HFC6483EC SEV5-W multi-purpose passenger BEV JAC GROUP Battery swappable 335 NIO EC6 HFC6483EC SEV6-W multi-purpose passenger BEV SAIC Motor Battery swappable 336 ROEWE ER6 CSA7001SS Corporation EV1 electric sedan Limited 72 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Announce Enterprise Trademark Generic Product Model Product Name d Batch Name Name
SAIC Motor Battery swappable 336 ROEWE Ei5 CSA7002FSE Corporation V1 electric sedan Limited SAIC Motor Battery swappable 336 ROEWE Ei5 CSA7002FSE Corporation V2 electric sedan Limited JAC GROUP Battery swappable 337 NIO ES8 HFC6502EC SEV9-W multi-purpose passenger BEV Beiben Trucks Battery swappable 337 BEIBEN / ND3310DBX Group Co., J7Z02BEV electric dump truck Ltd. Beiben Trucks Chassis for battery 337 BEIBEN / ND3310DBX Group Co., J7Z02BEV swappable electric Ltd. dump trucks SAIC-IVECO Battery swappable 337 HONGYA / CQ4180BEV HONGYAN N SS441 electric semitrailer Commercial tractor Vehicle Co., Ltd. (SAIC Hongyan) Xuzhou Battery swappable 337 XCMG / XGA4252BE XCMG Auto VWCA electric semitrailer Manufacturi tractor ng Co., Ltd. Xuzhou Battery swappable 337 XCMG / XGA5317ZL XCMG Auto JBEVWA electric garbage dump Manufacturi trucks ng Co., Ltd. Xuzhou Chassis for battery 337 XCMG / XGA3317BE XCMG Auto VWEAX swappable electric Manufacturi dump trucks ng Co., Ltd.
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Source: Publicly available information
Note: Since May 2020, the announced vehicle models are divided into battery charging models and battery swapping models, so only battery swapping models announced from the 333rd batch are counted.
A "vehicle-battery-separated" business model is gradually taking shape. That is, power batteries are regarded as separate parts that can be sold or leased separately from vehicles, so that they become an asset that can be circulated in the market. For example, NIO, BAIC BJEV and FIRST TECHNOLOGY are all exploring battery-swapping business models to be verified by the market. In August 2020, NIO and CATL and other companies jointly invested in establishing MIRATTERY, and released BaaS (Battery as a Service), which provided users with comprehensive services of vehicle-battery separation, battery leasing, and chargeable, replaceable and upgradeable functions, and realized the innovation in technologies and business models. When choosing the mode of BaaS to buy NIO vehicles, users don't need to buy batteries, but can choose to rent batteries with different capacities according to their needs and pay service fees.
Figure 28: Prices of NIO vehicle models
整车购车价 Price of the whole vehicle 减去国家补贴购车价（个人用户） Price of vehicle minus the State's subsidies (for individual users) 选择BaaS购车价 Price of vehicle with BaaS 46.8万起 At least RMB468,000
74 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
45万起 At least RMB450,000 38万起 At least RMB380,000 35.8万起 At least RMB358,000 34.36万起 At least RMB343,600 27.36万起 At least RMB273,600 36.8万起 At least RMB368,000 35万起 At least RMB350,000 28万起 At least RMB280,000 注：BaaS模式——车辆售价降低7万元，租用70kWh电池 Note: BaaS mode--the vehicle price is reduced by 包，服务费980元/月，非服务无忧用户需另支付电池保障 RMB70,000, the rent of 70kWh battery pack is 费用80元/月。 RMB980/month, and the users without worry-free service insurance need to pay the additional battery insurance charge of RMB80/month.
Source: NIO BaaS news conference
Figure 29: NIO BaaS
蔚来 NIO 蔚能电池资产公司 MIRATTERY 用户 Users 销售电池包 Sell battery packs 委托运营 Entrusted operation 租用电池包 Rent battery packs 购买车辆（不含电池） Purchase vehicles (excluding batteries) 运营服务 Operation services
Source: NIO BaaS news conference
China accelerates the construction of V2G demonstration projects. Against the background that the charging infrastructure of NEVs has been included in the concept of "New
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Infrastructure", with the technological progress of charging equipment and the extension of charging service network, China accelerates the construction of V2G demonstration projects. Since 2020, many V2G demonstration projects have been carried out in Beijing, Tianjin and Hebei, with V2G technology launch and economical exploration as the main demonstration contents.
Table 12: Summary of V2G demonstration projects in China in 2020 (incomplete statistics)
Company/Area Time Main Contents of V2G Demonstration Projects
For the first time in China, it officially brought V2G North China Branch of April 2020 charging pile resources into the auxiliary service State Grid Corporation market of electric power peak regulation in North of China China and officially settled them.
The first batch of smart charging stations Fuzhou April 2020 integrating storage, charging and inspection have been built and put into use successively, and V2G function has been realized by adopting AC/DC hybrid network technologies. The smart charging station project in Beichen Tianjin April 2020 District Industry City Integration Demonstration Area started the installation of main equipment. The smart charging station is built with a V2G charging and discharging system to realize the two-way interaction between power grids and EVs. It will build 288 smart charging piles in the State Grid Beijing / Electric Power residential quarter of Liumeng Jiayuan, Fengtai Company District, and devote itself to innovating and introducing cutting-edge technologies such as V2G.
Weltmeister announced that it would cooperate Weltmeister and the June 2020 with the State Grid to promote the application of State Grid V2G technology. Weltmeister has passed actual tests of vehicles and piles with all V2G technologies as well as road tests.
Source: Publicly available information
The actual typical case of the State Grid's V2G has initially shown the user's economy. Taking the case of an employee in Beijing Zhongzai Mansion as an example 18 , charge through the State Grid's electric smart AC pile installed in the employee's home at electricity consumption valley and discharge through V2G pile in Beijing Zhongzai Center at electricity
18 Provided by the Energy Division of State Grid EV Service 76 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
consumption peak. The peak electricity price for industrial and commercial uses is usually RMB1.2884 per kilowatt hour, the valley electricity price is RMB0.3023 per kilowatt hour, and the electric charge for residents' smart piles is RMB0.4883 per kilowatt hour. Because the employee has a long commute (25.6km), and the air conditioner is used for heating in winter, when the battery activity is weakened, the remaining capacity after work is about 25%, the normal daily discharged capacity is about 85%-25%, and the discharged capacity of a daily order is about 28.02kWh (measured by the actual order DC meter).
According to the statistics, during the 35 working days from November 2, 2020 to December 18, 2020, the employee had 30 orders for discharge, the discharge income was RMB497.92, and the discharged capacity was 711.83kWh (including 266kWh charged and discharged in his company during his business trip), with an average discharged capacity of 23.73kWh per order and an average discharged capacity of 20.34kWh per working day. The charging cost of the smart pile at his home was RMB405.8 and the charged capacity was 831.06kWh. During his business trip, the charging cost at V2G piles was RMB84 and the charged capacity was 278kWh. In this case, the total charging cost was RMB489.8, the discharge income was RMB497.92, and the commuting distance was about 1,500km. In this case, the EV user realized "free charging", and the vehicle owner's discharge income minus the charging cost could also pay for his daily travelled mileage power consumption.
Table 13: A case of V2G vehicle used by an employee in Beijing Zhongzai Mansion
Category Main Items Capacity Discharge Income/Charging Cost (kWh) (RMB) Discharge V2G discharge in 711.83 497.92 company Charge Smart charging at home 831.06 405.8 V2G charge in company 278 84
Source: Data provided by the Energy Division of State Grid EV Service Note: The statistical time of this case data cover 35 working days, from November 2, 2020 to December 18, 2020
3. Innovative Development Significance and Present Situation of Recycling
(1) Recycling is the last and important link of power battery full life cycle asset
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management
Recycling can fully exploit the power battery full life cycle value, and form a closed loop of battery asset management. Most of retired batteries have a high residual capacity (70-80% of the rated capacity), which can be utilized by cascades under milder usage scenarios than powering vehicles; Moreover, retired batteries contain valuable metals such as lithium, cobalt and nickel, which can be recycled. The cascade utilization and recycling can give full play to the performance of power batteries and explore the incremental value of batteries, which is an important link in the closed-loop management of power battery full life cycle asset.
Figure 30: Capacity preservation and cycle life curve of lithium iron phosphate power batteries
动力电池退役点 Power battery retirement point 综合利用区间 Comprehensive utilization interval 梯次电池回收点 Cascade battery recovery point
Source: "An Introduction to the Current Situation of Cascade Utilization of BYD Retired Batteries", BYD, 2019 Annual Summit of Power Battery Recycling and Cascade Utilization, September 2019
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Table 14: Content and recovery value of recyclable materials in anode materials of power
batteries
Lithium NCM NCM NCM NCM 333 523 622 811 iron phosphate
Amount of anode materials 2232 1984 1634 1543 1462 per GWh (ton)
Nickel content (ton) - 385 497 561 706
Cobalt content (ton) - 387 199 188 89
Manganese content (ton) - 361 279 175 83
Lithium content (ton) 98 152 117 110 104
Corresponding battery-grade 522.7 808 625 588 555 lithium carbonate content (ton)
Nickel value (RMB10,000) - 4371 5637 6363 8009
Cobalt value (RMB10,000) - 10449 5373 5076 2403
Manganese value - 397 307 193 91 (RMB10,000)
Lithium value (RMB10,000) - - - - -
Corresponding battery-grade 2091 3232 2500 2352 2220 lithium carbonate value (RMB10,000)
Theoretical recovery value 2091 18449 13817 13984 12723 (RMB10,000)
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Source: Data provided by SK Innovation
Note: The recovery value of the above metals is calculated according to their respective average market prices in the first three quarters of 2020.
It is of environmental significance to carry out large-scale and specialized recycling of discarded power batteries. If discarded power batteries are not disposed through specialized and large-scale recycling, their potential pollutants will be directly exposed to the environment, and organic substances, heavy metals and other components will diffuse into the environment, which will harm human health, cause irreversible damage to air, water and soil, and have a great negative impact on the ecological environment, production and life.
Table 15: Main components and potential hazards of discarded power batteries
Category Commonly used materials Main chemical characteristics Potential pollution risks Lithium cobaltate/lithium These substances will react manganate/nickel cobalt violently with water, acid, Heavy metal Anode lithium manganate/lithium reducing agent or strong pollution changes materials iron phosphate, etc. oxidant to produce harmful the pH value of the metal oxides. environment.
Cathode Carbon/graphite Dust may explode when Dust pollution materials exposed to open flame or high temperature.
Lithium These substances are Fluoride pollution Electrolyte hexafluorophosphate/lit highly corrosive, and can changes the pH hium tetrafluoroborate, produce toxic gases when value of the etc. meeting water or high environment. temperature. Ethylene Their hydrolysates produce Electrolyte Organic pollution solvent carbonate/dimethyl aldehydes and acids, which carbonate will produce carbon monoxide, etc. when burned. Diaphragm Polypropylene/ Burning of these substances Organic pollution will produce carbon polyethylene monoxide, aldehydes, etc.
Polyvinylidene These substances will react Adhesive Fluorine pollution fluoride/vinylidene with fluorine, oleum, strong fluoride alkali and alkali metal, and can be decomposed into generate hydrogen fluoride when heated.
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Source: Publicly available information
(2) The power battery recycling policy has entered the implementation stage in China, and the national standard system has been preliminarily established The development of power battery recycling policy in China is mainly divided into three stages: planning, guidance and implementation. The first stage is from 2012 to 2015, and the policies related to power battery recycling mainly appeared in some clauses of planning documents which were made for promoting NEVs; The second stage is from 2016 to 2017, when some dedicated policies on recycling and utilization of power batteries were introduced, focusing on guidance policies; The third stage is from 2018 to now, when, with the increasing promotion of NEVs in China, the dedicated policies on power battery recycling were further improved, focusing on implementation policies, and relevant policies on demonstration and pilot projects were released.
Figure 31: Summary of development stages of relevant policies in the power battery recycling industry in China
以新能源汽车推广规划类政策为主，动力电池回收利用作 Power battery recycling appeared in some clauses of 为相关政策文件中的部分条款出现 relevant planning documents, mainly made to promote NEVs. 2012-2015年 From 2012 to 2015 以新能源汽车和动力电池行业指导类政策为主，少量动力 A few dedicated policies related to the power battery 电池回收利用相关专题政策开始出台 recycling were issued, focusing on the guidance policies of NEVs and the power battery industry. 2016-2017年 From 2016 to 2017 以动力电池和新能源汽车行业执行类政策为主，动力电池 Dedicated policies related to power battery recycling 回收利用相关专题政策陆续发布，并逐步趋向细化 were released successively, and were gradually detailed, focusing on the implementation policies in the power battery and NEV industry. 2018年至今 From 2018 to now
Source: Data provided by SK Innovation.
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Macro planning policies in the power battery recycling industry in China are mainly issued by the State Council, while guidance and planning policies are mainly managed by MIIT and NDRC. In January 2017, the State Council issued a policy to clarify the extended producer responsibility system and guide the development direction of power battery recycling in some clauses of the overall development plan of the NEV industry. In the past five years, MIIT has formulated a series of policies on the recycling network construction, storage, transportation, dismantling, cascade utilization and recycling of retired power batteries, and the policy system is being gradually improved. For example, the "Announcement on the Construction and Operation Guide of Power Battery Recycling Service Stations for NEVs" issued by MIIT in November 2019 divided the recycling service stations into collection type and centralized storage type, and stipulated the main responsibilities, information management, construction requirements, operation requirements, safety and environmental protection requirements, etc. respectively; In January 2020, MIIT issued the 2019 editions of "Industry Standard Conditions for Comprehensive Utilization of Waste Power Batteries for NEVs" and "Announcement Management of Industry Standards for Comprehensive Utilization of Waste Power Batteries for NEVs", which superseded the 2016 edition; In October 2020, MIIT issued the "Measures for the Administration of Cascade Utilization of NEV Power Batteries (Exposure Draft)", which stipulated the cascade utilization enterprises, cascade products, recycling, supervision and management, etc., and mentioned that cascade utilization enterprises should be encouraged to obtain production and service data of power batteries, power battery manufacturers should adopt product design structures easy for cascade utilization, cascade utilization enterprises should be responsible for standardized recycling and environment-friendly disposal of waste cascade products, and cascade products hard for recycling should be prohibited for development.
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Table 16: Main policies in China's power battery recycling industry summarized by issuing units
(incomplete statistics)
Issuing Unit Document Name Issued on
Energy Saving and NEV Industry The State Council July 9, 2012 Development Plan (2012-2020)
The General Office of the State Council The State Council July 21, 2014 issued the Guiding Opinions on Accelerating the Promotion and Application of NEVs. The State Council Implementation Scheme of Extended January 3, 2017 Producer Responsibility System
The State Council Development Plan of NEV Industry (2021- November 2, 2035) 2020
MIIT Industry Standard Conditions for Vehicle March 26, 2015 Power Batteries
MIIT Interim Measures for Announcement December 28. Management of Lithium Ion Battery Industry 2015 Standards
NDRC, MIIT, the Ministry of Environmental January 28, Technical Policy for Recycling Electric Vehicle Protection, the Ministry of 2016 Power Batteries (2015) Commerce and the General Administration of Quality Supervision, Inspection and Quarantine
MIIT Technical System of Comprehensive Lithium November 9, Ion Battery Standardization 2016
Regulations on the Administration of NEV MIIT January 17, Manufacturers and the Access qualification 2017 of Products Guiding Opinions on Accelerating the MIIT, the Ministry of January 25, Development of Renewable Resources Commerce and the Ministry 2017 Industry of Science and Technology MIIT, NDRC, the Ministry of Science and Action Plan for Promoting the Development of March 1, 2017 Technology and the Vehicle Power Battery Industry Ministry of Finance
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Issuing Unit Document Name Issued on
MIIT, the Ministry of
Science and Technology, the Ministry of
Environmental Protection, Interim Measures for the Administration of the Ministry of Transport, Recycling of NEV Power Batteries February 26, the Ministry of Commerce, 2018 the General Administration of Quality Supervision, Inspection and Quarantine, and the National Energy Administration
MIIT, the Ministry of
Science and Technology, the Ministry of Ecology and Environment, the Ministry July 25, 2018 of Transport, the Ministry of Notice on the Pilot Work of Recycling NEV Commerce, the State Power Batteries Administration for Market Regulation, and the National Energy Administration List of Enterprises Meeting the Industry MIIT Standard Conditions for Comprehensive September 5, Utilization of Waste Power Batteries of NEVs 2018 (the First Batch)
MIIT Standard Conditions for the Industry of Lithium January 25, Ion Batteries (2018) 2019
MIIT Interim Measures for Announcement January 25, Management of Lithium Ion Battery Industry 2019 Standards (2018)
MIIT Announcement on the Construction and November 7, Operation Guide of Power Battery Recycling 2019 Service Stations for NEVs
MIIT Industry Standard Conditions for January 2, 2020 Comprehensive Utilization of Waste Power Batteries for NEVs (2019)
MIIT Interim Measures for Announcement January 2, 2020 Management of Industry Standards for Comprehensive Utilization of Waste Power
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Issuing Unit Document Name Issued on
Batteries for NEVs (2019)
MIIT Measures for the Administration of Cascade October 10, Utilization of NEV Power Batteries (Exposure 2020 Draft)
The Ministry of Technical Policy for Prevention and Control of December 26, Environmental Protection Waste Battery Pollution 2016
Source: Publicly available information on websites of ministries and commissions
At present, China has preliminarily established a national standard system for power battery recycling. The system mainly includes such four parts as general requirements, cascade utilization, recycling and management standards, covering all links in the power battery full life cycle, such as design and production, disassembly, packaging and transportation, storage, pretreatment, dismantling, cascade utilization and recycling, and plans to further improve packaging and transportation, battery storage, pretreatment and cascade utilization. In November 2020, the national standard GB/T 39224-2020 "Technical Specifications for Waste Battery Recycling" was issued, which stipulated the general requirements, collection requirements, sorting requirements, transportation requirements and storage requirements for waste battery recycling. In addition, the relevant standards for environment-friendly disposal of recycling power batteries are also being formulated. In June 2020, the Ministry of Ecology and Environment issued a national environmental protection standard entitled "Technical Specifications for Pollution Control of Waste Lithium Ion Power Batteries (Exposure Draft)", which standardized the pollution prevention and control in recycling waste power batteries19.
Table 17: Summary of national standards for power battery recycling issued and under study
(incomplete statistics)
Category Standard Name Release No./Plan No.
Recycling of Power Batteries Used in EVs- General -General Requirements—Part 1: / Requirements Specifications for Compiling Dismantling Manuals Recycling of Power Batteries Used in EVs- -General Requirements—Part 2: Terms / and Definitions
19 The Ministry of Ecology and Environment, http://www.mee.gov.cn/xxgk2018/xxgk/xxgk06/202006/t20200617_784922.html 85
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Category Standard Name Release No./Plan No.
Recycling of Power Batteries Used in EVs- -General Requirements—Part 3: Technical / Conditions of Retirement Recycling of Power Batteries Used in EVs- -General Requirements—Part 4: Technical / Specifications for Classification Recycling of Power Batteries Used in EVs- -General Requirements—Part 5: General / Requirements of Safe Production of Enterprises Recycling of Power Batteries Used in EVs- -General Requirements—Part 6: / Specifications of Assessment for Green Factories Recycling of Power Batteries Used in EVs—Cascade Utilization—Part 1: Test of GB/T 34015-2017 Residual Capacity Recycling of Power Batteries Used in EVs—Cascade Utilization—Part 2: GB/T 34015.2-2020 Removing Requirements Recycling of Power Batteries Used in EVs—Cascade Utilization—Part 3: 20150671-T-339 Cascade Utilization Requirements Cascade Recycling of Power Batteries Used in Utilization EVs—Cascade Utilization—Part 4: Labels / for Cascade Utilization Products Recycling of Power Batteries Used in EVs—Cascade Utilization—Part 5: Design / Guide for Cascade Utilization Recycling of Power Batteries Used in EVs—Cascade Utilization—Part 6: / Specifications for Residual Life Assessment Recycling of Power Batteries Used in EVs—Recycling—Part 1: Dismantling GB/T 33598-2017 Specifications Recycling of Power Batteries Used in Recycling EVs—Recycling—Part 2: Materials GB/T 33598.2-2020 Recycling Requirements Recycling of Power Batteries Used in EVs—Recycling—Part 3: Specifications for 20191067-T-339
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Category Standard Name Release No./Plan No.
Discharging
Recycling of Power Batteries Used in EVs—Recycling—Part 4: Specifications for / Compiling Recycling Reports Management Recycling of Power Batteries Used in Specifications EVs—Management Specifications—Part 1: GB/T 38698.1-2020 Specifications for Packing and Transporting Recycling of Power Batteries Used in EVs—Management Specifications—Part 2: / Specifications for Construction of Recycling Service Stations Recycling of Power Batteries Used in EVs—Management Specifications—Part 3: / Specifications for Handling Recycling of Power Batteries Used in EVs—Management Specifications—Part 4: / Specifications for Storage
Source: A speech entitled "Research on Recycling Standards and Policies of Power Batteries Used in Vehicles at Home and Abroad" delivered by Zhang Xuemei; http://std.samr.gov.cn/gb
(3) The retirement peak of power batteries in China is coming soon, and lithium iron phosphate and ternary batteries are going to retire in large scale
Power batteries enter the stage of large-scale retirement. Since 2014, the sales volume of NEVs in China has entered a stage of rapid growth. Although the sales volume of NEVs slowed down in 2019 due to factors such as subsidy recession, economic downturn and pandemic outbreak, the annual sales volume remained basically at the level of one million. According to the 5-8 years of service life of NEVs (3-5 years of operating vehicles), China will gradually enter the stage of large-scale retirement of power batteries from 2020. According to a forecast, the cumulative retirement capacity of power batteries will reach 90.5GWh from 2020 to 2022.
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Figure 32: Sales volume of NEV (left) and installed capacity of power batteries (right) in China from 2013 to 2019
单位：万辆 Unit: TEN THOUSAND VEHICLES 单位：GWh Unit: GWh
Source: http://www.caam.org.cn and China EV100 think-tank database
Figure 33: A forecast for a total amount of retired power batteries in China
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Source: China EV100 think-tank forecast Note: Based on the actual installed capacity of power batteries in China from 2014 to 2019 and providing that: 1. The retirement cycle of ternary power batteries for passenger vehicles is 5-6 years; 2. The retirement cycle of lithium iron phosphate power batteries for passenger vehicles is 6-7 years; 3. The retirement period of other power batteries for passenger vehicles is 6 years; 4. The retirement cycle of ternary power batteries for commercial vehicles is 4-5 years; 5. The retirement cycle of lithium iron phosphate power batteries for commercial vehicles is 5-6 years; 6. The retirement cycle of other power batteries for commercial vehicles is 5 years, the total amount of retired power batteries in China from 2020 to 2022 is predicted as above, and the following forecast for amounts of retired power batteries by battery type also adopts this method.
Lithium iron phosphate batteries and ternary power batteries will retire in large scale. Before 2016, lithium iron phosphate power batteries were widely used in NEVs in China. Due to technological innovations and policy orientation, the installed capacity of ternary power batteries in China has increased rapidly since 2017. By 2019, the installed capacity of ternary power batteries was nearly twice that of lithium iron phosphate power batteries. According to the forecasted results, the waste power batteries will be mainly lithium iron phosphate ones around 2020, and the amounts of retired ternary and lithium iron phosphate power batteries will be almost the same by 2022. It is predicted that the amount of waste ternary power batteries will continue to increase from 2023 to 2025. However, with the trend of market- oriented development of NEVs, lithium iron phosphate batteries with low cost and new modules will be favored by the market again.
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Figure 34: Proportions of installed capacities of lithium iron phosphate and ternary power batteries in China from 2015 to 2019
磷酸铁锂动力电池 Lithium iron phosphate power batteries 三元动力电池 Ternary power batteries 其他类型动力电池 Other types of power batteries
Source: China EV100 think-tank database
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Figure 35: A forecast for amounts of retired lithium iron phosphate and ternary power batteries in China from 2020 to 2022
磷酸铁锂动力电池 Lithium iron phosphate power batteries 三元动力电池 Ternary power batteries 单位：GWh Unit: GWh
Source: China EV100 think-tank forecast
(4) The power battery recycling service stations have begun to take shape, and the effective regional promotion of EVs will drive the construction of recycling service stations.
Currently, vehicle dealers and garages serve as the primary recycling stations. According to the information of NEV power battery recycling service stations published on the website of MIIT, by May 31, 2020, there were 7,605 registered power battery service stations in China. Through the classified statistics of these stations, China's power battery recycling service stations are presently divided into eight categories: dealers, garages, bus/passenger transport/transportation/logistics companies, abandoned vehicle enterprises, vehicle parts manufacturers, main engine plants, battery comprehensive utilization enterprises, leasing enterprises, etc. Among the eight categories, dealers and garages take up to 95%.
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Figure 36: Classified statistics of power battery recycling service stations in China
汽车经销点82.4% Vehicle dealers, 82.4% 汽修点12.9% Garages, 12.9% 公交/客运/运输/物流公司1.9% Bus/passenger transport/transportation/logistics companies, 1.9% 主机厂0.3% Main engine plants, 0.3% 报废车企0.4% Abandoned vehicle enterprises, 0.4% 汽配商0.4% Vehicle parts manufacturers, 0.4% 租赁企业0.1% Leasing enterprises, 0.1% 其他0.9% Others, 0.9% 电池综合利用企业0.6% Battery comprehensive utilization enterprises, 0.6%
Source: Data provided by SK Innovation
The effective regional promotion of EVs can drive the construction of local power battery recycling service stations to a certain extent. According to the statistical analysis of the number of power battery recycling service stations in different provinces/municipalities, the top five regions are Guangdong, Shandong, Jiangsu, Zhejiang and Henan. By comparing the five regions with other provinces/municipalities in their cumulative sales volume of NEVs and the number of their power battery recycling stations from 2014 to May 2020, we discover that when the cumulative sales volume of NEVs in a region is less than 100,000, the number of battery recycling stations is about 100; When the cumulative sales volume of NEVs in a region is 100,000-300,000, the number of battery recycling stations are 200-500; When the cumulative sales volume of NEVs in a region exceeds 300,000, the number of battery recycling stations shoots up to 600-800. 92 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Figure 37: Quantity statistics of power battery recycling service stations in different regions
动力电池回收网点拥有量（个） The number of power battery recycling stations (Nos.) 广东省 Guangdong 山东省 Shandong 江苏省 Jiangsu 浙江省 Zhejiang 河南省 Henan 四川省 Sichuan 河北省 Hebei 湖北省 Hubei 湖南省 Hunan 安徽省 Anhui 福建省 Fujian 上海市 Shanghai 山西省 Shanxi 陕西省 Shaanxi 北京市 Beijing 云南省 Yunnan 辽宁省 Liaoning 江西省 Jiangxi 广西壮族自治区 Guangxi 贵州省 Guizhou 重庆市 Chongqing 天津市 Tianjin 内蒙古自治区 Inner Mongolia 黑龙江省 Heilongjiang 甘肃省 Gansu 新疆维吾尔自治区 Xinjiang 吉林省 Jilin 海南省 Hainan 宁夏回族自治区 Ningxia 青海省 Qinghai 西藏自治区 Tibet
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Source: https://www.miit.gov.cn
Figure 38: Relational graph between the cumulative sales volume of NEVs and the number of power battery recycling service stations in Guangdong, Shandong, Jiangsu, Zhejiang, Henan, Hebei, Guangxi, Shaanxi, Yunnan and Hainan from 2014 to May 2020
动力电池回收网点拥有量（个） The number of power battery recycling stations (Nos.) 云南省 Yunnan 河北省 Hebei 江苏省 Jiangsu 山东省 Shandong 海南省 Hainan 广西壮族自治区 Guangxi 陕西省 Shaanxi 河南省 Henan 浙江省 Zhejiang 广东省 Guangdong 2014年-2020年5月新能源汽车累计销量（万辆） The cumulative sales volume of NEVs from 2014 to May 2020 (TEN THOUSAND VEHICLES)
Source: https://www.miit.gov.cn and China EV100 think-tank database
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(5) Industrial chain enterprises are exploring economical ways to enhance cascade utilization and recycling. 1) Cascade batteries have demonstrated economic efficiency in the field of low-speed vehicles, and they have application potentials in the field of energy storage. The dismantling cost of retired power battery packs or modules is high, so the utilization of battery packs as they are can reduce the cost of their utilization. Before being put into cascade utilization, retired power batteries, as a general procedure, must be removed, stored, transported, inspected, dismantled and recombined. Dismantling of retired battery packs into modules or battery cells can, firstly, help eliminate useless modules/battery cells, thus improving the quality and life of cascade batteries, and secondly, facilitates the use of them in scenarios of limited space, for instance, as backup batteries at communication base stations or in low-speed EVs. However, the dismantling of battery pack/module includes complex processes, resulting in high costs. According to a literature20 which analyzes and calculates the cost of dismantling retired batteries, a model of electric minivan is selected as the sample and every process is manually operated. The costs of battery removal, assessment, battery pack dismantling and module dismantling are calculated. The results show that battery assessment, battery pack dismantling and module dismantling account for 28.5%, 28.5% and 34.1% of the total cost respectively. The electrical performance testing is the major cost source of battery assessment, accounting for 83.3%; The dismantling of electrical components is the major cost source of battery pack dismantling, accounting for 41.7%; The removal of sensors and wires is the major cost source of module dismantling, accounting for 37.2%. With the improvement of power batteries and the need to reduce the cost of use, enterprises in the industry began to explore the whole pack application of cascade batteries. For example, the 7.27MWh cascade battery user-side energy storage system jointly built by BAK and China Southern Power Grid adopted the whole pack application scheme of retired ternary power batteries. Through the modular multi-branch energy storage converter, one-to-one management of the whole battery pack was realized, effectively reducing the cost of battery pack dismantling and recombination. The project was formally put into operation in August 201921; Huayou Cobalt applied the whole pack of retired ternary power batteries in the field of energy storage and backup batteries at communication
20 Economical Analysis of Dismantling and Cascade Utilization of Lithium Ion Batteries for EVs, Wu Zhanyu et al., http://www.cbipress.com, June 2020 21 "The Whole Cascade Battery Pack Energy Storage System for Large-scale Application Put into Operation in Shenzhen", MIIT, November 2019, http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057542/n3057545/c7530613/. 95
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base stations, carried out relevant research and launched demonstration projects22.
Figure 39: Cost composition analysis of dismantling retired power batteries
拆卸电气部件 Remove electrical components 模组拆卸 Remove modules 拆除模组上盖外壳 Remove the upper cover case of modules 拆除传感器及连接线 Remove sensors and connecting wires 拆除底部外壳 Remove the bottom case 电芯拆卸 Dismantle battery cells 前期准备 Early-stage preparations 开仓取电池包 Open the compartment and take out the battery pack 外观检查 Appearance inspection 电性能检测 Electrical performance testing 最终检查 Final inspection 打开电池包外壳 Open the case of battery pack 电池包拆解 Dismantle battery pack 模组拆解 Dismantle modules 电池评估 Battery assessment 电池包从车辆上拆卸 Remove battery pack from the vehicle
Source: Economical Analysis of Dismantling and Cascade Utilization of Lithium Ion Batteries for EVs, Wu Zhanyu et al., http://www.cbipress.com, June 2020
22 Huayou Cobalt Survey 96 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Figure 40: Battery dismantling instructions prepared by a vehicle manufacturer
动力电池模组 Power battery modules 外壳/线束拆卸 Removal of case/wires 外壳 Case 线束 Wires 电池拆分 Battery dismantling
Source: Data provided by SK Innovation
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The application of cascade batteries in low-speed EVs and factory transportation vehicles has started to demonstrate economic efficiency. Similar to the application scenario of backup power for communication base stations, the application of cascade batteries in low-speed EVs and factory transportation vehicles mainly replaces lead-acid batteries, which are inferior to cascade batteries in cycle life and energy density. In terms of the application scenario of low-speed EVs, with the expansion of market space in China's urban takeaway/express industry, the demand for low-speed EVs has been boosted. According to the forecast of an institution, the average annual growth rate of demand for low- speed EVs by takeaway riders in China will reach 23% from 2020 to 2023 23 . Takeaway/express delivery riders are sensitive to the use cost of vehicles. Compared with lead-acid batteries, cascade batteries are economical. According to the three-year use cost calculation of electric bicycles powered by lead-acid batteries, new lithium batteries and cascade lithium batteries, the use costs of cascade lithium iron phosphate and ternary batteries are lower than those of lead-acid batteries; In addition, providing that all batteries are charged once a day, compared with lead-acid batteries, the cascade batteries can bring about additional 3-6 orders and about RMB18-36 per day. In the takeaway /express delivery market in Zhejiang, Huayou Cobalt24 supplies low-speed EVs with cascade ternary batteries to local takeaway/express delivery riders through the mode of "rent to own" or direct selling, and uploads the service data of vehicles through the BMS equipped by the company to its a self- built platform of Internet of Vehicles for real-time monitoring, ensuring the safety of battery use and traceability of cascade batteries; In 2019, the capacity of cascade batteries loaded by Huayou Cobalt in the field of low-speed vehicles reached nearly 7MWh, and the gross profit rate of its two-year-warranty cascade battery low-speed vehicle project was up to 20-25%. In the field of factory transportation vehicles, some vehicle manufacturers install cascade batteries on forklifts and trailers that are used frequently (which usually work continuously for more than 11 hours every day) in their factories, which shows certain economic efficiency in practical application. SGMW 25 transformed lithium iron phosphate cascade batteries and applied them to electric trailers and electric forklifts to be used in its factory, replacing lead- acid batteries; By calculating the contrastive analysis of annual average use costs of the two types of batteries, the results show that if all of 219 transportation vehicles in its factory use cascade batteries, compared with new lead-acid batteries, the cost of about RMB1.32 million
23 "The Demand for Electric Bicycles is Soaring and the Quantity of Shared Electric Bicycles is Increasing", CITIC Securities, July 2020 24 Huayou Cobalt Survey 25 "Feasibility Analysis of Retired Power Batteries Used as Transportation Vehicle Power Supply", Yu Zhikun et al., Equipment Manufacturing Technology, June 2019 98 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
can be saved averagely every year; On this basis, considering the development cost of BMS, the battery compartment renovation cost and the BMS replacement cost caused by the use of cascade batteries, the cost recovery period of the project is 1.5 years, and the project will end up saving about RMB1.2 million for the company every year.
Table 18: Comparison of major performance parameters of new lead-acid batteries and cascade
lithium iron phosphate batteries
Battery Performance Indices New Lead-acid Batteries Cascade Lithium Iron Phosphate Batteries
Cycle life (times) 500 2000
Gravimetric specific energy 30-45 90-120 (Wh/kg) Volumetric specific energy 70 125-250 (Wh/L) Operating temperature range 25-28 -5-55 (oC)
Source: A Series of Reports on Lithium Iron Phosphate Industry Chain (II): 5G Layout is Speeding up, and All Batteries at Base Stations are Expected to be Lithium Iron Phosphate Ones, Orient Securities, March 2020
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Figure 41: Demand forecast for electric bicycles in takeaway/express market in China from 2019 to 2023
单位：万辆 Unit: TEN THOUSAND VEHICLES
Source: "The Demand for Bicycles is Soaring and the Quantity of Shared Electric Bicycles is Increasing", CITIC Securities, July 2020
Table 19: Calculation of 3-year service cost of electric bicycles powered by lead-acid batteries,
new lithium batteries and cascade lithium batteries
(Applied in the fields of takeaway/express delivery)
The First The The Third Subtotal Total for 3 Year Second Year Years Year
Battery cost 600 600 600 1800 New lead-acid 2347.5 batteries Electricity 182.5 182.5 182.5 547.5 cost
Battery cost 1440 0 0 1440 New lithium iron 2261.3 phosphate batteries Electricity 273.75 273.75 273.75 821.25 cost
Battery cost 1575 1575 0 3150 New ternary batteries 3971.3 Electricity 273.75 273.75 273.75 821.25 cost
Battery cost 345.6 345.6 0 691.2 Cascade lithium iron 1348.2 phosphate batteries Electricity 219 219 219 657 cost
Battery cost 378 378 378 1134 Cascade ternary 1791 batteries Electricity 219 219 219 657 cost
Source: China EV100 think-tank forecast Note: The assumptions are as follows: 1. An electric bicycle of 48V20Ah is selected as the estimated object; 2. The original capacity of a new lead-acid battery is 1kWh, the original capacity of a new lithium battery (ternary and lithium iron phosphate battery) is 1.5kWh, and the original capacity of a cascade lithium battery is 1.2kWh (the original capacity of a cascade battery is 80% of that of a new lithium battery);
100 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
3. The price of a lead-acid battery is RMB600/kWh, the price of a new lithium iron phosphate battery is RMB960/kWh, the price of a new ternary battery is RMB1050/kWh, and the price of a cascade battery is 30% of that of a new lithium battery; 4. The electricity price is RMB0.5/kWh, assuming that all batteries are charged once a day; 5. In the application scenario of takeaway/express delivery, it is assumed that the service life of a lead- acid battery is 1 year, that of a new lithium iron phosphate battery is 3 years, that of a new ternary battery is 1.5 years, that of a cascade lithium iron phosphate battery is 1.5 years, and that of a cascade ternary battery is 1 year.
Table 20: Average annual costs of 219 transportation vehicles powered by new lead-acid
batteries and cascade lithium iron phosphate batteries
Vehicle Battery Number of Number of Use New Lead-acid Use Cascade Lithium Iron Average Annual Name Model Vehicles Batteries in Batteries Phosphate Batteries Cost Saved by (Nos.) Compartment Using Cascade Average Average Average Average Batteries (Nos.) Service Annual Cost Service Annual Cost Life (RMB TEN Life (RMB TEN (RMB TEN (Years) THOUSAND (Years) THOUSAND/ THOUSAND/Year) /Year) Year)
Electric 24V175Ah 71 4 2.48 81.3 5.1 18.5 62.8 trailer-1 Electric 48V280Ah 60 1 3.75 36.3 5.1 12.5 23.8 trailer-2 Electric 48V280Ah 14 1 2.68 10.9 5.1 2.9 8 trailer-3 Electric 48V280Ah 17 1 2.92 12.1 5.1 3.5 8.6 trailer-4 Electric 48V470Ah 38 1 4.17 32.3 5.1 13.3 19 forklift-1 Electric 48V630Ah 10 1 2.58 10.2 5.1 4.7 5.5 forklift-2 Electric 48V640Ah 9 1 2.96 9.1 5.1 4.3 4.8 forklift-3 Total / 219 / / 192.2 / 59.7 132.5
Source: "Feasibility Analysis of Retired Power Batteries Used as Transportation Vehicle Power Supply", Yu Zhikun et al., Equipment Manufacturing Technology, June 2019
Cascade batteries have great potential in the field of energy storage. With the development of larger power battery modules and the trend of application of retired battery packs, the potential of cascade batteries in the fields of container energy storage and power generation and storage using renewable energies is attracting much attention from the industry. In the field of container energy storage, electric microgrids consisting of energy
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storage containers which are made of packed cascade batteries can be formed to charge EVs in industrial parks or to power office buildings. For example, the Demonstration Project of Beijing Daxing Storage and Charging Integration, built by Huayou Cobalt 26 in mid-2019, incorporates an energy storage container system composed of cascade batteries to provide storage and charging services for bus charging stations in Daxing District. Each container, 10 feet long, consists of three cascade ternary battery packs with a total capacity of 50kW/150kWh, which is placed outdoors and equipped with HFC-227ea fire extinguishers. The energy storage container system uses three 20kW two-way DC/DC modules composed of parallel battery packs, and accesses to the PCS modules after being electrically insulated. The power load is monitored by measuring the current at the metering position of the grid, and this also ensures that the power generated by the energy storage system is fully consumed by the park. The energy storage system charges when the price of electricity falls to the lowest, and discharges when the price rises to the peak, thus realizing a dynamic regulation of its capacity and making it possible to make money from the price differences. SK Innovation has also applied cascade batteries in the field of energy storage, targeted to energy-intensive enterprises in industrial parks. Based on the characteristics of retired batteries and the operation specifications, the company has assessed the safety of the cascade energy storage facility and predicted its service life.
In the field of renewable energy power generation and storage, the problem of power restriction by renewable energy power plants can be eased by adopting energy storage facilities, and in this regard the use of cascade batteries has certain economic efficiency. A case study27 on a photovoltaic power plant in Qinghai, for example, demonstrates that, based on its actual annual operation data – the installed capacity, restricted capacity, restricted days and average on-grid electricity price, cascade batteries could be used for energy storage. By means of financial modeling, the ROI and net present value of the energy storage system are calculated with the plant being equipped with a capacity ranging from 1-7MWh. As a conclusion, it is most economical to adopt a 2MWh cascade battery energy storage configuration: the designed service life of the system is 14 years, the pre-tax project payback period is 8.46 years, the pre-tax internal rate of return is 9.84%, the pre-tax net present value is RMB504,000, and the asset-liability ratio is 80% in the first year, which will drop to 5.3% early the last year. Sensitivity analysis demonstrates that the project can sustain at least an investment risk of 12% cost increase (the investment is most rewarding when the on-grid
26 Huayou Cobalt Survey 27 "Economical Analysis of Photovoltaic Energy Storage Power Stations", Feng Xiaoli, Advanced Technology of Electrical Engineering and Energy, September 2019 102 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
electricity price [tax included] is not lower than RMB 0.9716/kWh).
Figure 42: Schematic diagram of cascade battery container energy storage by Huayou Cobalt in Daxing District, Beijing
电力传输线路 Power transmission line 通讯线路 Communication line 电网 The electric grid 并网计量点 Grid-connected metering point 能量管理系统 Energy management system 交换机 Switch 预留光伏接入 Reserved photovoltaic access 含MPPT（最大功率追踪）DC/DC模块 Including MPPT (Maximum Power Point Tracking) DC/DC modules DC/DC模块 DC/DC module DC/DC充电模块 DC/DC charging module 退役动力电池包1 Retired power battery pack 1 退役动力电池包2 Retired power battery pack 2 退役动力电池包3 Retired power battery pack 3 预留直流母线充电桩接入 Reserved DC bus charging pile access
Source: Huayou Cobalt Survey
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Table 21: Main financial indexes of a photovoltaic power station equipped with 2MWh energy
storage system in Qinghai Project Name Unit Numerical Value Installed capacity MWh 2 Annual on-grid power consumption MWh 435.60
Total investment RMB TEN THOUSAND 308.99 Interest incurred during construction RMB TEN THOUSAND 2.99 Working fund RMB TEN THOUSAND 6.00 Total sales revenue (excluding VAT) RMB TEN THOUSAND 564.35
Total cost RMB TEN THOUSAND 350.57
Total business tax and surcharges RMB TEN THOUSAND 6.11 Total profit of power generation RMB TEN THOUSAND 207.68 Par electricity price during operation RMB/MWh 1080.00 (including VAT) Payback period of project investment Year 8.46 (before income tax) Payback period of project investment (after 年 9.14 income tax) Year Internal rate of return on project investment % 9.84 (before income tax) Internal rate of return of project investment % 7.92 (after income tax) Financial net present value of project RMB TEN THOUSAND 50.40
investment (before income tax) Financial net present value of project RMB TEN THOUSAND 34.16 investment (after income tax)
Source: "Economical Analysis of Photovoltaic Energy Storage Power Stations", Feng Xiaoli, Advanced Technology of Electrical Engineering and Energy, June 2019 Note: The basic conditions are as follows: 1. The installed capacity of the photovoltaic power station was 20MWp; 2. In 2018, the photovoltaic power station had a total restricted capacity of 2.529 million kilowatt hours, an annual average on-grid electricity price was RMB1.08/kWh, and an annual loss of RMB2.731 million was incurred; 3. The investment amount of 1MWh cascade battery energy storage system (including investment in batteries and related equipment, etc.) is RMB1 million. When the service life of battery expires, other equipment can still be used, and the replacement cost of cascade battery pack is RMB500,000/MWh.
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Use technological means to apply retired batteries with different brands, types, time and other states into the same cascade product. In the field of energy storage, kilowatt- hour or megawatt-hour battery capacity is usually needed, and the recycled cascade batteries are different in sources and usage states, so it is necessary to integrate these batteries with different states for application by technological means. For example, Anhui RECYCLING RESOURCES TECHNOLOGY28 adopts five kinds of retired power batteries of different types, structures and times for energy storage in its an energy storage power station project, divides these batteries into five loops, each of which is equipped with PCS and BMS for data monitoring and control, and then coordinates the charge and discharge power of each loop by heterogeneous compatible controllers to achieve the balanced charge and discharge power of the whole energy storage system. The technical feasibility of the system is verified by actual operating data. In July 2020, Huayou Cobalt 29 , Toyota Motor and Toyota Tsusho jointly established and officially launched a research project of retired power battery cascade utilization technology, and mainly carried out technical exchange and practical test in quick judgement and related cascade utilization technology of retired batteries, which included a research on realizing compatibility with retired batteries of different brands in the same cascade product by technological means.
28 "Design and Practice of Heterogeneous Energy Storage Power Stations with Power Battery Cascade Utilization", Lin Wu et al., Zhejiang Electric Power, May 2020 29 The official website and survey of Huayou Cobalt 105
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Figure 43: Network topology of energy storage system composed of different cascade batteries
EMS(能源管理系统) EMS (Energy Management System) 数据监控层 Data monitoring layer 异构兼容控制器 Heterogeneous compatible controller 数据控制层 Data control layer MODBUS TCP总线 MODBUS TCP BUS MODBUS RTU总线 MODBUS RTU BUS CAN总线 CAN BUS 1号PCS No.1 PCS 2号PCS No.2 PCS 3号PCS No.3 PCS 4号PCS No.4 PCS 5号PCS No.5 PCS 1号桥接器 No.1 bridge 2号桥接器 No.2 bridge 1号BMS No.1 BMS 2号BMS No.2 BMS 电池巡检仪 Series battery inspection device 4号BMS No.4 BMS 5号BMS No.5 BMS 第1回路 No.1 loop 第2回路 No.2 loop 第3回路 No.3 loop 第4回路 No.4 loop 第5回路 No.5 loop 现场应用层 Field application layer
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Source: "Design and Practice of Heterogeneous Energy Storage Power Stations with Power Battery Cascade Utilization", Lin Wu et al., Zhejiang Electric Power, May 2020
2) Improve the recycling economy of lithium iron phosphate power battery by optimizing the process Lithium iron phosphate power batteries have a certain market space in commercial vehicles and some passenger vehicles in China. From January to June 2020, the installed capacity of lithium iron phosphate power batteries in China showed a recovering trend; Lithium iron phosphate power batteries have a high and stable market share in China's commercial vehicle market; In addition, with the cost pressure brought by subsidy recession and the innovative development of technology such as "blade batteries", lithium iron phosphate power batteries will also occupy a certain share in some passenger vehicle markets. For example, the hot-selling model WULING HONGGUANG MINI EV launched in July 2020 is equipped with lithium iron phosphate batteries (the manufacturer's guide price is RMB28,800-38,800), while the model BYD Han launched in the same month is the first model equipped with lithium iron phosphate "blade batteries" (the manufacturer's guide price is RMB219,800-279,500)30. According to the above estimate, the cumulative retired capacity of lithium iron phosphate power batteries in China will reach 48.7GWh in from 2020 to 2022, when a large number of lithium iron phosphate power batteries that cannot be utilized by cascades and have been utilized by cascades will need to be recycled.
30 https://www.autohome.com.cn and China EV100 think-tank database 107
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Figure 44: From June 2019 to June 2020, proportion of installed capacity of lithium iron phosphate power batteries in total installed capacity in China every month (upper) and proportion of lithium iron phosphate power batteries in total installed capacity of passenger vehicles and special vehicles (lower).
客车 Passenger vehicles 专用车 Special vehicles
Source: China EV100 think-tank database
Hydrometallurgy and physical methods are the main techniques for recycling lithium iron phosphate power batteries in China. According to literature reviews and enterprise surveys, traditional materials recycling enterprises mainly adopt hydrometallurgy to recycle 108 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
lithium iron phosphate batteries, but the recycling cost of this technique is high; The technological process of recycling lithium iron phosphate power batteries by physical methods is relatively simple and the cost is relatively low, but the consistency of the repaired lithium iron phosphate anode material cannot meet the new power battery standard.
Table 22: Main recovery processes of waste lithium iron phosphate power batteries
Recovery methods of lithium iron Main recycled Advantages Disadvantages phosphate power products batteries
The technology is Long technological process, Hydrometallurgy Lithium salts proven, and the high recovery cost and large such as requirements for amount of acid and alkali lithium pretreatment of anode waste liquid. carbonate materials are low.
The requirement for purity of
Physical method Lithium iron Simple technological raw materials is high, and the phosphate process and less acid consistency of recycled anode and alkali waste liquid. materials cannot meet the standards of new power battery anode materials.
Source: "Research Progress in Recycling Technology of Waste Lithium Iron Phosphate Batteries", Chen Yongzhen et al., Energy Storage Science and Technology, March 2019
Optimizing the technological process to reduce the recovery cost and improve the recovery rate of valuable metals is the main method to improve the recycling economy of lithium iron phosphate power batteries. According to the incomplete statistics of domestic patents for inventions of recycling waste lithium iron phosphate power batteries applied by enterprises in the last three years, some enterprises have made certain progress in process improvement. For example, GOTION HIGH-TECH has enhanced the recovery rate of lithium carbonate by improving the technological process; GEM had used high temperature reduction and distillation to shorten the technological process, and the recovered product is lithium metal; On the basis of solid-state method, GHTECH has recovered lithium iron phosphate material with high purity without adding phosphorus source and iron source by innovating the technological process; HIGHPOWER TECHNOLOGY has adopted mechanical activation method to activate lithium iron phosphate anode materials to improve the subsequent leaching reaction rate and have high selectivity 31. According to the enterprise
31 https://www.cnki.net 109
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surveys, SDM has improved the process, recycled lithium iron phosphate power batteries by using the all-components physical recovery method, realized the all-components recovery of seven materials from a single battery, and applied repaired anode/cathode materials by the high-temperature solid-phase repairing technique in the fields of low-speed vehicles, small- scale energy storage, etc.
Figure 45: Recovery process flow diagram of all-components physical method of SDM
梯次利用 Cascade utilization 退役动力电池 Retired power batteries 检测 Testing 放电 Discharge 拆解 Dismantling 精确拆解 Accurate dismantling 五金件 Hardware 正极料 Anode materials 铝粉 Aluminum powder 铜粉 Copper powder 负极料 Cathode materials 电解液 Electrolyte 废隔膜 Waste diaphragm 材料修复 Repair materials 成分调控 Regulate and control components 高温固相修复 High-temperature solid-phase repairing 正极修复材料 Repaired anode materials 成分调控 Regulate and control components 高温固相修复 High-temperature solid-phase repairing 负极修复材料 Repaired cathode materials 造粒 Granulating 电池制造 Battery manufacturing
Source: SDM Survey
(6) Industrial chain enterprises have deepened their cooperation
In the field of power battery recycling, upstream and downstream enterprises in the 110 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
industrial chain have gradually deepened their cooperation. Vehicle manufacturers, power battery manufacturers and raw material manufacturers have made overall arrangements in battery recycling business one after another, by means of equity participation with third-party recycling enterprises (including cascade and recycling enterprises), strategic cooperation with upstream and downstream enterprises in the industrial chain, or entering the business directly. On the one hand, the formation of industry barriers through business extension can reduce the cost of power batteries to a certain extent; On the other hand, by connecting the upstream and downstream enterprises in the industrial chain, the supply of some raw materials such as cobalt salt can be guaranteed, forming a closed loop of the power battery supply chain.
Table 23: Cases of upstream and downstream enterprises in the industrial chain making overall
arrangements in recycling business (incomplete statistics)
Layout Type Enterprise Brief Description of Layout Name
Hold shares of GANPOWER, a recycling enterprise (the BAIC BJEV shareholding ratio is 4.47%); Establish Beijing Articore,
a cascade utilization enterprise, with the Battery Research Institute of Henan.
Holding shares CATL Hold shares of Guangdong BRUNP, a recycling enterprise (the shareholding ratio is 52.88%, being a major shareholder).
Tinci Hold shares of Zhongtian Hongli, a cascade utilization Materials enterprise (the shareholding ratio is 76.89%, being a major shareholder).
Carry out technical research cooperation with Toyota Huayou Motor in cascade utilization; Establish Huajin New
Cobalt ENERGY MATERIALS (Quzhou) Co., Ltd., a joint venture, with LG Chem to produce ternary precursors
Strategic and explore the recycling of ternary renewable cooperation materials. In 2015, it signed the "Cooperation Framework GEM Agreement on Energy Storage Power Station and Photovoltaic Power Station Projects" with BYD; In 2018, it signed the "Strategic Cooperation Framework Agreement on Recycling of Retired Power Batteries" with BAIC BJEV.
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Layout Type Enterprise Brief Description of Layout Name
It signed a cooperation agreement with BAIC ROCAR to
GHTECH cooperate in cascade utilization of retired power batteries and recycling system of waste batteries; It signed the "Strategic Cooperation Agreement on Recycling and Disposal of Waste Power Batteries" with Nanjing Golden Dragon.
It signed a strategic cooperation agreement with SGMW GREAT to jointly develop and produce related cascade POWER utilization products. CHINA It signed strategic cooperation agreements with 11 TOWER major EV manufacturers such as FAW, DFEV, SAIC and NIO; It signed cooperation agreements with battery companies such as BYD Battery and GOTION HIGH- TECH; It signed cooperation agreements with material enterprises such as GEM, GANPOWER, SDM and JINCHUAN.
Direct layout BYD It mainly recycles waste power lithium batteries through Battery authorized dealers, and continues to apply them in household energy storage or base station backup power. If the batteries can't be reused, the company will transport the batteries to relevant departments of its material factory in Huizhou, and then dismantle and recycle them by hydrometallurgy.
In 2014, it established a demonstration line for power
CALB battery recovery, which could maximize the recovery rate of valuable materials in lithium power batteries, among which the recovery rates of copper and aluminum metals were up to 98%, and the recovery rate of anode material was over 90%.
Source: SK Innovation Survey and publicly available information
4. Innovative Development Significance and Present Situation of the Full Life Cycle Data Platform (1) Data platform is an important carrier to realize the effective management of power battery full life cycle data Realize the monitoring, collection, processing and analysis of battery data assets. By building the data platform and leveraging modern sensing technologies, big data, machine learning and blockchain, the whole process of battery production, use, cascade utilization and 112 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
recycling can be managed to realize the collection, pretreatment, storage and exploration of battery full life cycle data and guarantee the integrity and traceability of data assets32.
Figure 46: Battery full life cycle data asset management
电池材料参数 Battery material parameters 粒度、比表面、水分等 Particle size, specific surface area, moisture, etc. 电池梯次利用及回收 Cascade utilization and recovery of batteries 梯次场景、材料回收率等 Cascade scenario, material recovery rate, etc. 电池充电数据 Battery charging data 快慢充、充电电流、充电时长等 Fast and slow charging, charging current, charging time, etc. 电池全生命周期数据资产 Battery Full Life Cycle Data Asset 电池设计信息 Battery design information 配方、机械设计、电气设计等 Formula, mechanical design, electrical design, etc. 电池生产及测试数据 Battery production and test data 合浆涂布、化成分容、充放电测试等 Paste coating, chemical component stabilization and capacity classification, charge and discharge tests, etc. 电池车载运行工况 Battery operating conditions at vehicles 电压、温度变化、寿命衰减等 Voltage, temperature change, life decline, etc.
Source: Publicly available information Scientific assessment of battery status. The platform can effectively and continuously record the data of battery production, use and recovery, comprehensively assess the battery status and judge the battery health, unit cell consistency and life decline through the integrated processing of information and the analysis of intelligent model algorithms such as SOH, SOC and safety early warning. Data assets are useful throughout the battery's full life cycle. First, in the process of R&D and production, the data feedback can help to improve the battery technical schemes and reduce R&D costs. Second, during its service in vehicles, the real-time monitoring of data such
32 Introduction to BaaS Business of SK Innovation 113
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as battery operation and charging can help to analyze the operating conditions and failure behaviors of batteries more accurately, improve the utilization rate of batteries, enhance their safety performance and alleviate user concerns. Third, in the recycling process, the comprehensive assessment of batteries can provide decision-making basis for scenarios such as cascade utilization and recycling, and the traceability management of batteries can help supervise the flow of retired batteries into legal channels. Fourth, in the post-market stage, the mastery of battery information is conducive to battery rating and pricing, maintenance, residual value assessment of second-hand vehicle, etc., and also enhances the possibility of battery asset circulation, facilitating the derivation of corresponding financial and insurance products.
Figure 47: Functions of power battery data platform throughout the full life cycle
动力电池数据平台 Power battery data platform 金融产品 Financial products 电池保险 Battery insurance 行业研究 Industry research 车辆数据 Vehicle data 电池数据 Battery data 用户数据 User data 研发生产 R&D and production 安全管理 Safety management 电池生产数据 Battery production data 电池使用数据 Battery usage data 充电行为 Charging behavior 故障报警及预警 Fault alarm and early warning 二手车交易 Second-hand vehicle trading 电池定价 Battery pricing 售后服务 After-sales service 电池一致性 Battery consistency 电池健康状态 Battery state of health (SOH) 114 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
寿命衰减 Life decline 梯次利用 Cascade utilization 再生利用 Recycling 电池数据 Battery data 溯源信息 Traceability information 电池健康状态 Battery state of health (SOH)
Source: Publicly available information
(2) China's policies advocate the concept of data full life cycle, and promote the construction of data platform related to power batteries
The concept of power battery full life cycle data management is mentioned repeatedly in our policies. For example, in March 2017, the "Action plan of Promoting the Development of Vehicle Power Battery Industry" issued by the MIIT and other three ministries and commissions mentioned that it would advocate the concept of full life cycle, supervise the whole process of power battery production, use and recycling, and encourage industry organizations and professional institutes to establish product information service platforms; In December 2018, the "Action Plan for Improving Charging Support Capability of NEVs" issued by the MIIT mentioned that it would promote the construction of national charging infrastructure information service platforms, study and establish a data sharing mechanism, and implement the charging traceability management of NEVs; The Development Plan of NEV Industry (2021-2035) newly issued in November 2020 mentioned that it would establish and improve the management systems of transportation, storage, maintenance, safety inspection, retirement and recycling of power batteries, and strengthen the full life cycle supervision. The data platform is an important carrier to realize the effective management of power battery full life cycle data. In recent years, a series of policies issued by the State are constantly promoting the construction of power battery data platforms to guarantee the full life cycle value of batteries.
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Table 24: Policies related to power battery data platform (incomplete statistics)
Policy Name Issued by Issued on Related Content
It requires pilot cities to strengthen Notice on Further Improving the The Ministry of November 10, the monitoring and assessment of Pilot Work of Finance, the 2011 demonstration operations, monitor Demonstration Ministry of the daily operation status of Science and and Promotion of demonstration vehicles and power Technology, MIIT Energy Saving batteries, and collect, count and and NDRC and NEVs analyze the operating data.
Notice on Further Establish and improve the
Improving the MIIT November 15, enterprise monitoring platforms Safety Supervision 2016 and local monitoring platforms, of Promotion and and collect information such as Application of the safety status, mileage and NEVs charging capacity of NEVs, and key system failures of vehicles and power batteries. MIIT, the Ministry Notice on The formulation and actual of Environmental Supervising and December 2, establishment of local Protection, the Inspecting the 2016 governments' NEV safety Implementation of State supervision platform schemes, NEV Safety and Administration for Industry and data acquisition and uploading; Vehicle Emission Commerce, the Establishment of supervision Standards General Upgrading platform, monitoring of operation Administration of state, management and Quality uploading of data and early Supervision, warning and elimination of Inspection and potential safety hazards of local Quarantine, and the National NEV manufacturers. Energy Administration
Notice on It plans to establish the product Issuing the The State Council January 3, coding system and the full life Implementation 2017 cycle traceability system of EV Scheme of power batteries in 2017. Extended Producer Responsibility System
116 II. Significance and Present Situation of Innovative Development in Promoting Effective Asset Management Throughout the Power Battery Lifecycle
Policy Name Issued by Issued on Related Content
NEV manufacturers should
MIIT January 17, establish a monitoring platform Regulations on 2017 for the safe operation status of the Administration of NEVs; NEV manufacturers Access to NEV should implement traceability Manufacturers information management of and Products power batteries of NEVs throughout the full life cycle of products, and track and record the recycling of power batteries.
Notice on Adhere to green development Issuing the MIIT, NDRC, the March 1, 2017 and advocate the concept of full Action plan of Ministry of life cycle; Implement supervision Promoting the Science and over the whole process of Technology and Development of production, use and recycling of the Ministry of Vehicle Power power batteries, and encourage Finance Battery Industry industry organizations and professional institutes to establish product information service platforms.
Notice on On the basis of the coding MIIT, the Ministry February 26, Issuing the 2018 standard and traceability of Science and Interim information system of power Technology, the Measures for Ministry of batteries, the full life cycle the Environmental management mechanism should Administration of Protection, the be established, so that the source Recycling NEV Ministry of of power batteries can be checked, Power Batteries Transport, the their whereabouts can be traced, Ministry of key points can be controlled, and Commerce, the responsibilities can be ascertained. General Administration of Quality Supervision, Inspection and Quarantine, and the National Energy Administration
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Policy Name Issued by Issued on Related Content
MIIT, the Ministry Adhere to the concept of product
Notice on of Science and March 2, 2018 full life cycle, establish a Organizing and Technology, the traceability mechanism so that the Developing the Ministry of source of power batteries can be Pilot Work of Environmental checked, their whereabouts can be Recycling NEV Protection, the traced and key points can be Power Batteries Ministry of controlled, and implement the Transport, the whole process information Ministry of management of power batteries. Commerce, the General Administration of Quality Supervision, Inspection and Quarantine, and the National Energy Administration
Promote the construction of
Notice on December 10, national charging infrastructure NDRC, the 2018 and information service platforms, Issuing the National Energy Action Plan for Administration, study and establish a data sharing Improving MIIT, and the mechanism, implement the Charging Ministry of charging traceability management Support Finance of NEVs, so that charging Capability of behaviors and data can be traced, NEVs energy saving and emission reduction data can be calculated, and the data on vehicles and piles can be counted. Establish and improve the
Notice on Issuing The State Council November 2, management systems of 2020 the Development transportation, storage, Plan of NEV maintenance, safety inspection, Industry (2021- retirement and recycling of power 2035) batteries, and strengthen the full life cycle supervision.
Source: Publicly available information
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(3) Main players actively build data platforms for different links of power batteries
Various main players actively build data platforms for battery use in vehicles, traceability and recycling, etc. The full life cycle of power batteries covers many links and main players. In order to meet the national requirements for battery full life cycle information management, main players have gradually built differentiated data platforms related to power batteries based on their different needs, which have formed a certain scale, such as the national platform of the National Monitoring and Management Center for NEVs, the local platform of Shanghai Electric Vehicle Public Data Collecting, Monitoring and Research Center, and the platforms built by vehicle manufacturers, battery manufacturers, battery charging enterprises and battery recycling enterprises.
Table 25: Construction of power battery data platforms (incomplete statistics)
Type of Main Power Battery Data Platforms Construction Purposes Players
Promotion and application of NEVs, National Monitoring and National safety supervision, and optimization platforms Management Center for NEVs of subsidy policies, construction of Comprehensive management power battery recycling system, platform for national monitoring of and construction of extended NEVs and traceability of power producer responsibility battery recycling management system throughout the full life cycle of products.
Conduct data collection, storage Shanghai NEV Public Data Local Collecting, Monitoring and Research and analysis services for NEVs, platforms Center and bring about relevant data Shenzhen Green Freight NEV products such as safety supervision Operation Monitoring Public Service Platform and user behavior analysis to … provide support for the development of NEVs. Monitor the safe operation status of Monitoring platforms for NEV Vehicle NEVs, manage the traceability manufacturers manufacturers information of power batteries, and BAIC BJEV, NIO, BYD… track and record the recycling of power batteries.
PLM system, LIMS system, MES Intelligent manufacturing, R&D Battery system, remote monitoring platform, process optimization, battery manufacturers after-sales service system… traceability management, and analysis of derived data products
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Type of Main Power Battery Data Platforms Construction Purposes Players
Implement the charging traceability Charging pile cloud platform, Battery management of NEVs so that charging operation management charging charging behavior data can be cloud platform… enterprises traced, energy saving and emission reduction data can be calculated, and information data of vehicles and piles can be counted. Provide retired battery recycling and information traceability, trading Power Battery Recycling Public Battery matchmaking, testing and Service Platform (Changsha recycling assessment, warehousing and Research Institute of Mining and enterprises hosting, logistics organization, Metallurgy Co., Ltd.) industry analysis, technical consulting, financial empowerment and other services.
Source: Publicly available information
(4) Industrial chain enterprises explore the construction schemes of power battery full life cycle data platforms
Some enterprises are building the power battery full life cycle data platforms. At present, power battery data platforms are scattered, so it is of great significance to realize coordinated development of all links and unblock the data chain in the whole process, which is helpful to improve the operation and management efficiency of battery assets. Taking the CALB power battery data service cloud platform as an example, CALB plans to integrate the data of battery materials, design, testing and terminal operation, so as to facilitate the research of battery full life cycle. CALB initiated the project in February 2020 and planned to complete it in two phases. In the first phase, set up the platform framework and sort out the basic functions. According to the company's survey, 108 categories of battery data requirements have been presently identified and summarized. In the second phase, import the data into the platform to realize data integration. Through big data analysis, abnormalities in the process can be effectively detected, and the early warning function can be better realized through the cooperation with the backend.
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Figure 48: CALB data platform architecture
业务层 Business layer 整车厂要求、产品研发、质量改善、售后服务、失效分 Vehicle manufacturer requirements, product R&D, quality 析、梯次使用、供应商评价等 improvement, after-sales service, failure analysis, cascade utilization, supplier evaluation, etc. 功能层 Function layer 电池安全预警 Battery safety early warning 电池健康评估 Battery health assessment 电池寿命评估 Battery life assessment 电池故障预警 Battery fault early warning 电池残值评估 Battery residual value assessment 基础层 Base layer 故障预测 Fault prediction 故障零部件-时间/里程分布 Faulty parts-time/mileage distribution 无故障零部件-时间/里程分布 Fault-free parts-time/mileage distribution 零部件故障预估报告 Parts fault prediction report 故障报警 Fault warning 故障信息报警 Fault information warning 故障位置 Fault location 故障分类统计 Fault classification statistics 车辆工况 Vehicle operating condition 充放电行为 Charge and discharge behavior 续航里程 Cruising range 充放电温度 Charge and discharge temperature 百公里能耗 Power consumption per 100 kilometers 峰值放电/回馈电流 Peak discharge/feedback current 维修标准优化 Maintenance standard optimization 数据采集 Data acquisition 采集接口标准制定 Establishment of acquisition interface standard 采集项目制定 Establishment of acquisition items 数据来源 Data source 数据预处理 Data preprocessing 数据清理 Data Cleaning 数据集成 Data integration 数据转换 Data conversion 数据存储 Data storage
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Source: CALB Survey
Figure 49: Classification items of CALB data platform battery requirements
原始数据需求 Raw data requirements 电压 Voltage 电流 Current 车辆状态 Vehicle status 里程 Mileage 绝缘 insulation 温度 Temperature 故障 Fault 电池数据需求分类项 Classification items of battery data requirements 运行工况类46项 46 items of operating conditions 故障报警及预警类27项 27 items of fault warning and early warning 电池性能检测分析类25项 25 items of battery performance test and analysis 电池寿命及健康类10项 10 items of battery life and health
Source: CALB Survey
Figure 50: Big data early warning strategy related to CALB power battery failure mode
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数据端异常特征深度挖掘 Deep mining of abnormal features at data end 时间序列预处理 Time series preprocessing 工况切分、维度简约、降噪 Segmentation of operating conditions, dimension simplification and noise reduction 异常特征提取 Extraction of abnormal features 专家自定义模型 Expert-defined model 傅里叶变换/离散小波 Fourier transform/discrete wavelet PLR/PAA/符号化表示 PLR/PAA/symbolic representation 异常模式识别 Abnormal pattern recognition 随机森林 Random forest 预警决策 Early warning decision 指标1 Index 1 指标n Index n 失效模式关联 Failure mode association 指标权重分解 Index weight decomposition 统计训练、优化 Statistical training and optimization 综合预警模型 Comprehensive early warning model 举例：漏液 For example: leakage 放电过程 Discharge process 绝缘电阻 Insulation resistance 抖动 Jitter 低于阈值 Below threshold 静置过程 Standing process 静态压盖 Static gland 缓慢增大 Increase slowly 判定失效：漏液 Estimated failure: leakage
Source: CALB Survey
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III. Issues with Promoting the Effective Life
Cycle Asset Management of Power Batteries
1. Deficiency of policies and regulations
(1) The responsibility for safety under the battery swapping model is yet to be defined, so as to define the rights and responsibilities for asset operation
There are obstacles with how to define the safety and responsibility for the operation and management of battery assets under the battery swapping model. Currently, China's policies about battery swapping are mainly those that encourage and support battery swapping, and it's still blank with the actual implementation measures such as the use of the battery swapping model and the definition of the responsibility for safety. Because vehicles that need to swap their battery packs have a high frequency of battery swapping, the reliability of their locking mechanisms and connectors for fast swap is still somewhat not as good as that of permanent battery packs. Meanwhile, battery swapping stations often have a lot of high SOC batteries in stock. These all may become safety hazards to some extent. In addition, the development of the battery swapping model has changed the three-party structure: vehicle manufacturers, battery manufacturers, and users, and new players like the battery swapping operators and battery asset management companies have appeared. Under this new landscape, regulations on defining the responsibility in case of safety issues should be introduced as soon as possible. (2) The regulatory oversight of the recycling industry for retired batteries is to be enhanced, and the corresponding policies are urgently needed to promote closed- loop asset circulation
Non-standard recycling channels and non-compliant recycling measures disrupt the order of the industry. Firstly, there are a lot of poorly equipped, unqualified “small workshops” in the industry, that have serious potential safety hazards and environmental issues. Compared to compliant companies, these “small workshops” have a low recycling cost, and by offering high prices to compete for retired power batteries, they make it hard for legitimate third-party recycling companies to obtain most of the actually retired batteries, especially the retired ternary batteries. There are still no powerful penalties for illegal battery disposal behaviors. Secondly, there are “scalpers” in the recycling market, and speculative buying and selling is serious, causing many retired batteries to flow into the assembly market, to be assembled into products and sold again in the marketplace, which will cause new safety
124 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries hazards and environmental pollution. But due to the lack of a regulatory system, it's hard to define relevant responsibilities.
The recovery of retired batteries from private vehicles is difficult, and a closed loop has not been formed for the circulation of battery assets. Firstly, the batteries of private vehicles are owned by consumers, but the existing policies and regulations don't have a clear definition or description of the responsibility, the right and the obligation of consumers about how to dispose of their power batteries. Secondly, although some leading vehicle manufacturers have their own criteria for assessing the residual value of batteries, there isn't a healthy system in the industry to assess the residual value of batteries, and the price of battery swapping is high, so private consumers are not motivated enough to swap batteries, causing some safety hazards. Thirdly, vehicle manufacturers have not set up a sound battery- swapping service network, nor have they formulated effective management measures, making it difficult for private consumers to replace their batteries. With the development of the EV market, private consumers are taking a higher and higher percentage, so it's urgent to introduce relevant policies and regulations so that retired batteries from private domains will enter the legitimate channels, and consumers' interests can be guaranteed.
Some recycling operations have no corresponding standards and policies to support them. Firstly, the industry doesn't have guidance and standards for cascade utilization. Secondly, some recycling operations are currently not economically viable by relying on the market behaviors only, and some support is needed from the government in terms of policies, but there aren't actionable incentive measures. Thirdly, the management policies don't have clear requirements for the transportation and other aspects of retired batteries. (3) There is no regulatory policy for the life cycle information of power batteries and no effective information support for asset management
The life cycle data of power batteries is seriously fragmented, and the application of data asset management is difficult. Currently China's related policies mainly have rules and requirements for some battery data and platform development for the purposes such as overseeing the safety of NEVs, ensuring the charging of NEVs, as well as the recovery and recycling of power batteries, but have no clear rules about life cycle information management. Because the life cycle of power batteries involves many processes and players, different players and platforms have cognitive differences and different focuses for data monitoring based on their own needs and positions. And due to different levels of authority, today only some enterprises (e.g. enterprises that produce both batteries and vehicles) have access to the life cycle data of some products, a majority of enterprises have no access to all the
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information about power batteries. In addition, the data of some enterprises including vehicle manufacturers has a low level of openness to the outside due to business secret concerns as they involve the information and parameters of key products.
Figure 51: The difference of different players in having access to battery data
电池生产 Battery production 材料参数 Material parameters 生产情况 Production information 设计方案 Design schemes 测试数据 Test data 维保状态 Maintenance status 编码信息 Code information 车载应用 In-vehicle applications 设计参数 Design parameters 测试数据 Test data 使用数据 Usage data 维保状态 Maintenance status 故障信息 Fault information 运营信息 Operating information 充电数据 Charging data 整车企业 Vehicle manufacturers 车辆/充电运用平台 Vehicles/charging platforms 梯次利用 Cascade utilization 电池健康状态 Battery state of health (SOH) 梯次利用信息 Cascade utilization information 测试数据 Test data 梯次利用企业 Cascade utilization enterprises 拆解回收 Dismantling and recycling 材料参数 Material parameters
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Pack 装配信息 Pack assembly information 回收情况 Recycling information 政府平台 Government platforms 运行数据 Operating data 故障信息 Fault information 充电数据 Charging data 资源管理 Resource management
Source: Publicly available information
(4) There is no incentive mechanism for EVs to be connected to power grids and take advantage of the peak-valley price difference, and the strategy for improving asset operation efficiency has failed
Currently, the V2G-related policies are mainly for planning purposes designed to encourage the exploration of the new V2G model and the development of pilot programs. For instance, in July 2018, The Opinion on Innovating with and Improving the Price Mechanisms for Promoting Green Development announced by the NDRC clearly states that the government encourages EVs to provide the energy-storage service and benefit from the peak-valley price difference; in November 2020, The Development Plan of NEV Industry (2021-2035) announced by the State Council mentions that the government will enhance the energy interaction between NEVs and power grids (V2G interaction), encourage local authorities to launch pilot programs for V2G application, lower the electricity cost of NEVs, and improve the responsiveness of power grids in terms of peak-load shifting, frequency modulation or emergency preparedness.
There is no policy about the mechanism in the power market and the catalog electricity prices for end users, and it's hard to gain economic benefits through the V2G model. Firstly, currently China's power market has a high access threshold. For example, the market players providing support services focus on power generation facilities, and the user-side resources (e.g. EVs) are not yet on their plate. China's power market is still mostly a middle- to-long-term market with a strong attribute of the planned economy, the spot market is in its initial stage, and the direction and progress of market reforms vary significantly from one region to another. Secondly, The Management Measures for Distributed Power Generation (Exposure Draft) announced by the National Energy Administration (NEA) in March 2018 doesn't make clear if EVs form a distributed power generation system; and power grid operators haven't established the operational systems and mechanisms for EVs to generate power and get connected to power grids. Thirdly, currently there aren't mechanisms to offer a
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peak-valley price ratio for residents and businesses in most regions of China, and even if a peak-valley price ratio is adopted for residential and commercial users of electricity in some regions, it is still lower than that adopted in developed countries (e.g. the peak-valley price ratio for residential and commercial users in Shenzhen is 3.2 and 4.7 respectively, whereas the peak-valley price ratio (in summer) for residents with EVs in California is 5.5). As a result, although there is a big potential to benefit from the peak-valley price difference, in reality it's hard to reap the economic benefits of this model.
Table 26: Part of V2G-related policies in China (incomplete statistics)
Name of policy Released by Released on Content The Development Explore the mechanisms for the Plan for the Industry two-way interaction of energy and of Energy-efficient The State July 9, 2012 information between NEVs as and New Energy Council mobile energy-storage units and Vehicles (2012- power grids 2020)
Promote the technologies for the orderly charging of EVs, for V2G (Vehicle-to-Grid) interaction, and The Guiding for the integrated charging- Opinion on discharging-storage operations. Promoting the NDRC, NEA July 7, 2015 Accelerate the construction of the Development of smart charging service networks Smart Grids for EVs; and develop pilot projects for the smart charging- discharging interaction of EVs under the V2G model The National Development Plan Drive the integrated development for the Strategic The State December of EVs with smart grids, new Emerging Industries Council 19, 2016 energy, energy storage, and during the “13th smart driving Five-Year Plan” Period
The Guiding Expand the energy storage Opinion on application of distributed battery Promoting the NDRC, MOF, resources including EVs. Actively October 11, Development of the MOST, MIIT, develop the smart charging & 2017 Energy Storage NEA, discharging business of EVs, and Technologies and explore the management and Industry control as well as the energy
128 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries
Name of policy Released by Released on Content storage application of the Energy Internet of distributed battery resources including the power batteries of EVs, batteries of communications base-stations, and uninterrupted power supplies (UPS).
The Opinion on Utilize modern information and Innovating with and connected-vehicle technologies to Improving the Price encourage EVs to provide energy NDRC July 2, 2018 Mechanisms for storage services and to benefit Promoting Green from the peak-valley price Development difference
Utilize technologies such as smart grids and smart connected- vehicles to encourage NEVs to provide energy storage services and to benefit from the peak- valley price difference; enhance The Action Plan for the stockpiling of technologies, Improving the Ability NDRC, NEA, December launch pilot programs for the to Ensure the MIIT, MOF 10, 2018 charging and discharging of EVs, Charging of NEVs explore the combination of distributed power generation and energy storage with technologies for the charging and discharging of EVs, and promote the consumption and absorption of clean energy
Drive the integrated development of NEVs and energy. Enhance the energy interaction between NEVs and power grids (V2G interaction), encourage local The Development authorities to launch pilot Plan of NEV The State November 2, programs for V2G application, Industry (2021- Council 2020 lower the electricity cost of NEVs, 2035) and improve the responsiveness of power grids in terms of peak- load shifting, frequency modulation or emergency preparedness.
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Source: Publicly available information 2. Deficiency of standards
(1) BMS testing standards are yet to be updated and improved to increase the industry's overall level of battery state assessment and asset maintenance
Firstly, the latest national standard GB/T 38661-2020, The Technical Conditions for the Management System of EV Batteries, adopted in October 2020 supplemented and standardized the test method for the estimate accuracy of SOC/SOP, but there is still no related requirement on the test method for the estimate accuracy of other SOXs (e.g. SOH and SOF). Secondly, currently the electrical/environmental adaptability test of the BMS still uses the methods for traditional vehicles in GB/T 28046.2-2011, The Environmental Conditions and Tests of the Electrical and Electronic Equipment of Road Vehicles--Part 2: Electrical Loads, and GB/T 28046.3-2011, The Environmental Conditions and Tests of the Electrical and Electronic Equipment of Road Vehicles--Part 3: Mechanical Loads. But EVs, which have higher voltage levels, differ from traditional vehicles. (2) There are various sizes of power batteries in the existing national standard, and large-scale asset management faces a lot of challenges
In the national standard GB/T 34013-2017, The Specifications and Dimensions of Power Battery Products for EVs, announced in July 2017, there are too many sizes specified for power battery cells and modules. On the one hand, this is not good for fully demonstrating the outcome of reducing costs through standardization in China's power battery industry; and on the other hand, this is not good for directing China's power battery industry by standardizing battery sizes.
Table 27: The number of cell dimensions specified in GB/T 34013-2017
Type of cell Number of dimensions Cylindrical cells 6 Square cells 125 Pouch cells 14 Source: www.biaozhun8.cn
Table 28: Battery module dimensions specified in GB/T 34013-2017 Dimensions (mm) No. Thickness Width Height 1 211-515 141 211/235 2 252-590 151 108/119/130/141
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3 157 159 269 4 285-793 178 130/163/177/200/216/240/255/265 5 270-793 190 47/90/110/140/197/225/250 6 191/590 220 108/294 7 547 226 144 8 269-319 234 85/297 9 280 325 207
10 18-27，330-672 367 114/275/429
11 242-246 402 167 12 162-861 439 363
Source: www.biaozhun8.cn
(3) There is a serious lack of battery swapping standards, and the channels for the broad circulation of assets are blocked
Currently, China's national standards for battery swapping are mainly those introduced in 2017 or earlier, which preliminarily standardized the communication protocol and technical requirement for battery enclosures that can be swapped quickly, as well as the technical requirement for battery swapping stations. In August 2020, the recommended national standard, The Safety Requirements for Swapping EV Batteries, drafted by a team led by organizations including BAIC BJEV, NIO, and CATARC passed the review, provides guidance for the healthy and safe development of the battery swapping industry. With the ongoing evolution of the battery swapping technologies and models, it has become urgent to introduce and adopt new standards, so as to create a healthy battery swapping ecosystem and realize the healthy operation of battery assets. Currently, the main obstacles are as follows: firstly, the standards for the specifications of battery enclosures that can be swapped quickly, for the interfaces of the battery system, for the construction, operation and management of battery swapping stations, and so on are still being worked on, the lack of unified standards hampers the development of the battery swapping model, and it's difficult to widely adopt this model to demonstrate the economies of scale. Secondly, because different companies have different battery designs, and their vehicles' appearance, body and chassis are also different, unifying battery specifications and battery swapping methods will affect their R&D, production and brand operation activities to some extent, so it's difficult to reach a consensus in the industry.
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Table 29: National standards related to battery swapping (incomplete statistics) Implemente Name of standard Status Main contents d on
GB/T 29316-2012, It specified the standard for the Technical quality of electricity at the charging Requirements on and battery swapping facilities for the Quality of Implemented June 1, 2013 EVs as well as their test Electricity at the requirement, including AC charging Charging and piles as well as battery charging Battery Swapping and swapping stations. Facilities for EVs
GB/T 29317-2012, It specified the terminologies Terminologies of the related to EV charging and battery Charging and Implemented June 1, 2013 swapping facilities as well as their Battery Swapping definitions. Facilities for EVs
It specified the types, site selection, GB/T 29772-2013, power supply system, charging & General Technical February 1, battery swapping systems, Requirements for Implemented 2014 monitoring system, as well as signs EV Battery & marks of the battery swapping Swapping Stations stations.
GB/T 31525-2015, It specified the requirements for the Marks for EV symbols and signs of EV charging December 1, Charging and Implemented & battery swapping facilities as well 2015 Battery Swapping as how those symbols and signs Facilities should be created.
It specified the rated values, GB/T 32879-2016, technical requirements, test General Technical methods, and test rules for the Requirements for March 1, connectors of battery enclosures the Connectors of Implemented 2017 used for battery swapping as well Battery Enclosures as the requirements for their Used for Battery marking, packaging, shipping, and Swapping storage.
GB/T 32895-2016, It specified the definitions of the Communication physical layer, data link layer, and Protocol for Quickly March 1, application layer for the Implemented Swapping the 2017 communication of quickly swapping Battery Enclosures the battery enclosures based on a of EVs Controller Area Network (CAN).
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Implemente Name of standard Status Main contents d on
GB/T 32896-2016, This standard is suitable for the Communication communication between the EV March 1, Protocol for the Implemented powertrain and the in-vehicle 2017 Powertrain equipment under the quick battery Assembly of EVs swapping model.
GB/T 33341-2016, General Technical It specified the environmental Requirements for conditions, functional requirements the Battery Implemented July 1, 2017 and technical requirements for the Enclosure Racks of racks of battery enclosure that can EVs Used for be swapped quickly. Battery Swapping
GB/T (recommended Passed national standard), It specified the safety requirements, review in The Safety / test methods and inspection rules August Requirements for for battery-swappable EVs. 2020 Swapping EV Batteries
Source: Publicly available information
(4) There is a lack of standards for “vehicle-pile-grid” current and information exchange, hampering the efficient energy interaction between EVs and grids
Achieving V2G requires the exchange of information between vehicles, charging piles, and power grids. But when it comes to the information exchange between vehicles and charging piles, currently none of China's national standards for AC and DC charging supports the reverse discharge of EVs, and there is no national standard supporting the information exchange between charging piles, charging operators, and power grids.
Table 30: China's national standards for EV charging
Implemented Standard No. Standard Name Deficiency for Supporting V2G on AC charging piles' Conductive Charging GB/T December communication system does System for EVs--Part 1: 18487.1-2015 28, 2015 not support the information General Requirements exchange for orderly charging,
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and does not support reverse discharge of EVs.
AC charging piles' communication hardware Connectors for the interface does not support the GB/T Conductive Charging December information exchange for 20234.2-2015 of EVs--Part 2: AC 28, 2015 orderly charging, and does not Charging Interface support the reverse discharge of EVs.
When it comes to the protocol for DC charging, the hardware interface supports the CAN- Communication based real-time Protocol between the communication, and meets the Non-onboard needs for orderly charging and GB/T 27930- December Conductive Charger V2X; but when it comes to the 2015 28, 2015 and the Battery communication protocol, this Management System standard doesn't have the of EVs control command for a charging pile to proactively control the power of vehicles, and needs to be optimized.
Source: Action plans and policy recommendations on vehicle grid integration in China, World Resources Institute, June 2020 (5) The data standards for various stages of the power battery life cycle are not unified yet, and the integration of data assets is inefficient
China's current standards GB/T 32960-2016 and GB/T 34014-2017 mainly standardize the formats of data that enterprises need to upload to local and national platforms as well as the coding rules for power batteries, and their scope and influence are limited, which is not good for the standard management of information across the life cycle of batteries. Firstly, the application scenarios of power batteries are complex, the standards for data formats under different scenarios are different, and the dimensions and accuracy of data sampling also differ, so it is not easy to realize smooth end-to-end data sharing. Secondly, due to lower frequency and accuracy of data sampling, false data reports and omissions are common, and data quality is poor, negatively affecting the subsequent data processing and analysis.
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Table 31: National standards for the power battery data platforms (incomplete statistics)
Implemented Standard Name Status Main contents on It specified the GB/T 32960.1-2016 terminologies and Technical Standard for the definitions for the remote Remote Service and October 1, Implemented service and management Management Systems of 2016 systems of EVs as well as EVs--Part 1: General their system structures and Rules general requirements.
GB/T 32960.2-2016 It specified the technical Technical Standard for the requirements and test Remote Service and October 1, methods for the onboard Implemented Management Systems of 2016 devices of the remote EVs--Part 2: Onboard service and management Devices systems of EVs.
It specified the communication protocol's GB/T 32960.3-2016 structure and Technical Standard for the communication connection Remote Service and in the remote service and October 1, Management Systems of Implemented management systems of 2016 EVs--Part 3: EVs as well as the Communication Protocol structure and definition of and Data Format data packets and the format and definition of data units.
It specified the coding objects for the power GB/T 34014-2017 Coding batteries of EVs, the February 1, Rules for the Power Implemented structure and composition 2018 Batteries of EVs of codes, the method to indicate code structure, and data carrier.
Source: Publicly available information
Table 32: Data required by national standards to be reported by platforms in real time
No. Data type Data name 1 Vehicle data (1) Vehicle status; (2) Charging status; (3) Operational
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No. Data type Data name mode; (4) Vehicle speed; (5) Odometer reading; (6) Total voltage; (7) Total current; (8) SOC; (9) DC-DC status; (10) Gear; (11) Insulation resistance
(1) Number of electric motors; (2) Information list of the assembly of electric motors; (3) Electric motor's serial number; (4) Electric motor's status; (5) Temperature of Electric motor's 2 electric motor's controller; (6) Electric motor's speed; data (7) Electric motor's torque; (8) Electric motor's temperature; (9) Electric motor's input voltage; (10) Current of electric motor's DC bus
(1) Fuel cell's voltage (2) Fuel cell's current; (3) Fuel consumption rate; (4) Total number of fuel cell's temperature probes; (5) Probe's temperature reading; Fuel cell's data (6) HT of hydrogen system; (7) Code of hydrogen 3 system HT probe; (8) Highest hydrogen concentration; (9) Code of hydrogen concentration sensor; (10) Highest pressure of hydrogen; (11) Code of hydrogen HP sensor; (12) High-voltage DC/DC status
(1) Engine's status; (2) Crankshaft's speed; (3) Fuel 4 Engine's data consumption rate
Vehicle location 5 (1) Location; (2) Longitude; (3) Latitude data
(1) Code of the battery subsystem with the highest voltage; (2) Code of the cell with the highest voltage; (3) Highest voltage of cells; (4) Code of the battery subsystem with the lowest voltage; (5) Code of the cell with the lowest voltage; (6) Lowest voltage of cells; (7) 6 Extrema Code of the subsystem with the highest temperature; (8) Serial number of the probe with the highest temperature; (9) Highest temperature; (10) Code of the subsystem with the lowest temperature; (11) Serial number of the probe with the lowest temperature; (12) Lowest temperature
(1) Highest alarm level; (2) General alarm sign; (3) Total number of faults with the rechargeable energy storage devices (N1); (4) List of the rechargeable Alarm data energy storage devices' fault codes; (5) Total number 7 of faults with the electric motors (N2); (6) List of the electric motors' fault codes; (7) Total number of the engine's faults (N3); (8) List of the engine's faults; (9) Total number of other faults (N4); (10) List of other fault
136 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries
No. Data type Data name codes
(1) Number of the rechargeable energy storage subsystems; (2) List of the voltage information of the rechargeable energy storage subsystems; (3) Codes of Data of the the rechargeable energy storage subsystems; (4) rechargeable 8 Voltages of the rechargeable energy storage devices; energy storage (5) Current of the rechargeable energy storage devices; device's voltage (6) Total number of cells; (7) Serial number of this frame's starting cell; (8) Total number of this frame's cells; (9) Cell voltage
(1) Number of the rechargeable energy storage subsystems; (2) List of the temperature information of Data of the the rechargeable energy storage subsystems; (3) rechargeable Codes of the rechargeable energy storage subsystems; 9 energy storage (4) Number of the temperature probes of the device's rechargeable energy storage subsystems; (5) temperature Temperature detected by each temperature probe of the rechargeable energy storage subsystems
Source: GB/T 32960.3, edited by the think-tank of China EV100 3. Technical bottlenecks
(1) The BMS is the key foundation for maintenance and management of battery assets, and its key algorithm needs to be optimized.
Progress has been made with key algorithms for evaluating the state of health (SOH) of batteries. SOH is an important parameter in the Battery Management System (BMS) to indicate battery status, assess its service life/residual value, and realize its cascade utilization. Calculating SOH by estimating the capacity or internal resistance is a mainstream method today. Currently companies are all actively working on how to optimize the algorithm of SOH. For instance, BYD mainly adopts the method to estimate the capacity of batteries, to identify SOC based on the features of a battery's charging and discharging curve, and to calculate SOH in combination with the capacity. Meanwhile, in combination with the battery's characteristics and big data to calibrate each other, the company will be able to make sure that the service life of a vehicle can be estimated when it is being developed, and SOH of the battery can be calculated and corrected when the vehicle is running. After the background data is calculated and monitored in real time, the SOH model can be further optimized, and
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in-vehicle remote update is also supported33.
But the key algorithms of BMS in different companies are largely incompatible with each other, and their accuracy is yet to be increased. On the one hand, due to factors such as the use of different cell material, the difference in system structure and layout, and the difference in vehicles they are used for, the battery design of different battery manufacturers varies from one to another, the BMS algorithms adopted by them are also different, which are poorly compatible with each other and difficult to be the same, and some companies are also subject to patent restrictions. On the other hand, a method to estimate the SOH of batteries needs to be compatible with multiple actual operating conditions such as operation and charging, whereas it's difficult to obtain the complete data about operating conditions, the data volume is big, analyzing them is difficult, and the accuracy of estimation is yet to be increased.
Figure 52: Algorithm framework for estimating the status of BMS
电压 Voltage 电流 Current 电池表面温度 Battery surface temperature 环境温度 Ambient temperature 温度管理 Temperature management 电池温度估计 Battery temperature estimation 电压 Voltage 电流 Current 电芯温度 Cell temperature 运行时间 Running time 电压 Voltage 电流 Current
33 BYD survey 138 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries
电芯温度 Cell temperature 运行时间 Running time 电压 Voltage 电流 Current 环境温度 Ambient temperature 电池表面温度 Battery surface temperature 电芯温度 Cell temperature 电绝缘检测 Electric insulation testing 可燃气检测 Combustible gas testing CAN 网络信号 CAN signal SOC 估计 SOC estimation SOH 估计 SOH estimation SOS 估计 SOS estimation 报警与安全控制 Alarm and safety control 电芯温度 Cell temperature 电压 Voltage 电流 Current SOF 估计 SOF estimation SOE 估计 SOE estimation 电压 Voltage 电流 Current 环境温度 Ambient temperature 电池表面温度 Battery surface temperature 未来工况电流 Current under future operating conditions 电池充放电能力 Charging and discharging capacity of battery 充电控制 Charging control 电池可用能量 State of Energy (SOE)
Source: LARGE ELECTRONICS Note: A battery's state includes its temperature, State of Charge (SOC), State of Health (SOH), State of Safety (SOS), State of Function (SOF), and State of Energy (SOE)
(2) Battery control strategies haven't taken the V2G scenarios into consideration yet, and the application value of assets on the grid side is yet to be further explored
Adopting the V2G model may accelerate battery attenuation. Under the V2G condition, charging and discharging frequently will increase the number of times a battery is used, and under circumstances that last a long time such as peak-load shifting, this may increase the battery's depth of discharge, and there is even a risk of over discharge. And currently power batteries are mainly designed for travel applications, without considering the interaction of vehicles as mobile energy storage devices with power grids. When the depth of charge and discharge of batteries as well as the charge-discharge ratio are not controlled or managed, using the V2G functions may reduce the service life of batteries to some extent, and increase the users' costs. (3) Further breakthroughs are yet to be made on the common technologies in the battery recycling industry, to increase the residual value of assets
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The efficiency of cascade utilization and recycling should be enhanced by means of technological advancement. When it comes to cascade utilization, testing retired batteries is an important part in ensuring the safety of products for cascade utilization. But due to the lack of data on the state of batteries when they are used in vehicles, currently many tests need to be performed for retired batteries, and in some cases battery packs need to be dismantled into cells for further testing, thus increasing the cost of cascade utilization. As for how to design life cycle data products for batteries to guide their quick testing and reduce battery disassembly, in-depth studies still need to be carried out about related technologies. When it comes to recycling, China has mastered the mature wet method, which mostly focuses on the recycling of cathode materials, so technologies for efficiently recycling anode materials and electrolytes still need to be further studied for breakthroughs. 4. Obstacles to commercialization
(1) It is difficult to reach a consensus in the industry for the standardization of passenger vehicle battery packs, which would significantly increase the cost of asset operation
For the purposes of reducing the cost of vehicle development and increasing the efficiency of cascade utilization, it's easier to realize standardization of battery packs within the internal platforms of vehicle manufacturers. For instance, BAIC BJEV has worked on the development and application of battery pack standardization, planning to adopt the unified standardized and platform-based design for envelope dimensions, external mechanical parts and electrical interfaces of battery packs. On the one hand, this is in order to realize the compatibility of the technical roadmaps for different vehicles and different batteries, to achieve the purpose of reducing costs on a large scale; on the other hand, the company is exploring the value around the life cycle management of power batteries, and has developed the integrated technology for the cascade utilization of the retired battery packs, to increase the utilization rate of the retired battery packs and make products more economical34.
But it's still difficult to reach a consensus on battery packs with standard dimensions in the industry. On the one hand, the foundation for widely adopting the chassis-based battery swapping model is the dimensional standardization of battery packs. However, currently there isn't a consensus on the battery swapping model within the industry. For instance, Aulton New Energy as a leader in battery swapping has done a lot of work on building networks and platforms as well as on technological and commercial validations in
34 "New Infrastructure + battery swapping: BAIC Bluepark New Energy is playing a 'trump card'", Xinhuanet.com, June 2020, http://www.xinhuanet.com/auto/2020-06/08/c_1126086124.htm 140 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries order to promote the battery swapping model on a large scale, and is also working on the standardization of battery packs. The company's strategy for the standardization of battery packs is mainly divided into two steps: 1) to unify dimensions and mechanical and electrical interfaces of battery packs to realize sharing between vehicles and charging stations; and 2) to unify communication and management interfaces to realize sharing between vehicles. Currently three existing vehicle models have accepted Aulton New Energy's unified battery swapping specifications, but it's a big challenge for them to be adopted by other, hesitating vehicle manufacturers35. On the other hand, to apply standard battery packs in passenger vehicles may somehow shrink the design space of vehicle manufacturers and homogenize EV products, which is not good for meeting the diverse needs of private consumers. (2) Constructing and operating battery swapping stations cost too much, which exerts some pressure on business operation Battery swapping stations can't break even until their utilization rate has reached a certain value. Take the battery swapping stations of NIO as an example, to estimate their economic viability under certain conditions. Based on the rates for the battery swapping service announced by NIO, the income of battery swapping = the amount of electricity (kWh) * (electricity price + service fees), where the electricity price is the local electricity price, and the service fees are slightly higher than the rates of the commercial charging stations in the surrounding areas of their battery swapping stations for fast charging. Assume that the income of battery swapping is 2.5 Yuan/kWh (the electricity price is 0.7 Yuan/kWh, and the service fees are 1.8 Yuan/kWh), and the maximum number of vehicles for which the batteries are swapped at one battery swapping station each day is 288, when the utilization rate of the battery swapping station is 7%, its after-tax net income will be 50,040 Yuan, and its 10-year internal rate of return (IRR) will be -4.64%; when its utilization rate is 8%-9%, basically it will be able to break even in 10 years; and when its utilization rate is 10% , its 10-year IRR will reach 7.73%36. In the future, with the increase of battery swappable vehicles, the utilization rate of the battery swapping stations will rise so that they can break even.
Battery swapping stations are faced with such issues as high costs and difficulty in construction. Firstly, the construction costs of battery swapping stations are high, and the initial investment is huge--equipment and land investments are basically over RMB5 million. Meanwhile, the stations must be operated by a professional team, which means labor costs and overheads are high. Whereas, there is uncertainty with profitability, the ROI period is long,
35 "Aulton Battery Swapping White Paper", Aulton New Energy, June 2020 36 Vehicle-battery Separation Directly Addresses the Pains -- Restart the Engine for Sales Growth, GF Securities, August 2020 141
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and the pressure of business operation is big. Secondly, currently building battery swapping stations faces issues such as the difficulty in site selection, the difficulty in land use, and the difficulty in getting approval, and a sound system or process for application management still doesn't exist. Thirdly, battery swapping stations intended for high-intensity operating vehicles require higher power capacity, which brings about additional difficulties.
Table 33: Assumed costs of battery swapping stations
Costs and incomes of Types Main items battery swapping stations
Initial equipment investment (RMB 260
Initial investments 10,000)
Land cost (RMB10,000) 300
Equipment maintenance cost 10 (RMB10,000)
Management expenses and labor costs 30 O&M costs (RMB10,000)
Electricity bill and other shared 10 management expenses (RMB10,000)
Equipment (RMB10,000) 26 Depreciation Land (RMB10,000) 10
Electricity cost Electricity cost (RMB/kWh) 0.7
Power service fees (RMB/kWh) 1.8
Incomes Income from electricity charges 0.7 (RMB/kWh)
Source: Vehicle-battery Separation Directly Addresses the Pains -- Restart the Engine for Sales Growth, GF Securities, August 2020
Table 34: Cost and benefit measurement for battery swapping stations
Related items Battery swapping stations
Total initial investments (RMB10,000) 560
Income from battery swapping (RMB/kWh) 2.5
Electricity cost (RMB/kWh) 0.7
Maximum number of served vehicles per 288
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day (unit)
Amount of electricity consumed each time 70 (kWh)
Maximum amount of electricity consumed 7358400 each year (kWh)
Utilization rate 7%
Amount of electricity consumed each year 515088 (kWh)
Total income from battery swapping 92.72 (RMB10,000)
Depreciation (RMB10,000) 36
O&M costs (RMB10,000) 50
Total income (RMB10,000) 6.72
After-tax net income (RMB10,000) 5.04
10-year IRR -4.64%
Time to recoup the costs (year) 13.11
Source: Vehicle-battery Separation Directly Addresses the Pains -- Restart the Engine for Sales Growth, GF Securities, August 2020
Table 35: Analysis of the sensitivity of battery swapping stations' 10-year IRR to utilization rate
and service fees Service fees Utilization rate (RMB/kWh) 6% 8% 10% 12% 14% 16% 1.6 -14.97% -4.09% 3.62% 10.04% 15.76% 21.05% 1.7 -12.46% -1.98% 5.72% 12.25% 18.12% 23.59% 1.8 -10.24% -0.01% 7.73% 14.38% 20.41% 26.06% 1.9 -8.23% 1.85% 9.66% 16.44% 22.64% 28.49% 2.0 -6.37% 3.62% 11.52% 18.45% 24.83% 30.87%
Source: Vehicle-battery Separation Directly Addresses the Pains -- Restart the Engine for Sales Growth, GF Securities, August 2020
(3) The outcome of increasing asset value through the V2G model is dramatically compromised due to the lack of efforts to modernize power grids for smart operations and the lack of a warranty system for EVs
To support V2G functions, power distribution grids need to be intellectualized
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(investments needed); the existing warranty system for EVs hasn't taken V2G application scenarios into consideration. Although supporting V2G has postponed the renovation investments needed for upgrading the capacity of power grids, this has increased the renovation investments needed to make them smart, such as smart load monitoring, smart two-way metering, as well as the application of big data and AI. For power grids, we need to probe deep into the business models to reap the economic benefits of V2G. For EVs, the mainstream vehicle warranty systems today are mainly pegged to mileage or year of purchase, and are not pegged to charge-discharge cycle or depth of discharge. Therefore, when promoting vehicles that support the V2G functions in the future, we will need to amend the vehicle warranty systems17.
(4) The overall costs of the battery recycling industry are high, and the liquidity of assets is weakened
Currently, the transportation cost of retired batteries is high. The service locations for the recovery and recycling of power batteries are scattered in different places, and battery recovery and recycling companies are mostly concentrated in the Pearl River Delta and Yangtze River Delta regions. Take a leading recycling company of the industry as an example. Currently, in the costs of recycling 1 ton of battery packs, the transportation cost accounts for about 40% (the transportation distance from the dealers to the recycling company is about 400km)37; in the future, with the gradual increase of the aftermarket retired batteries, how to lower the transportation cost of retired batteries will be an issue that the recycling companies will need to address.
There is capacity expansion in the recycling industry, and there is a trend of overcapacity. Against the backdrop of the fast development of EVs in China, the market of battery recycling is attracting significant inflow of capital, and players including specialized recycling companies and battery material producers are trying to expand their production capacity. According to incomplete statistics, as of 2018, the combined production capacity for the recycling of power batteries in China was about 46GWh 38 , of which the combined production capacity of 5 companies (GEM, Huayou Cobalt, GANPOWER, Brunp Recycling,
37 A survey by a company in the industry 38 Several Thoughts about the Recycling of Power Batteries (PPT), Li Yuke, CATARC, April 2019 144 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries and GHTECH)39 as the first cohort of companies on the MIIT's list of companies for The Industry Standard for the Comprehensive Utilization of the Used Power Batteries from NEVs accounted for 51.9%. However, the expansion of the recycling industry is faster than the actual growth of retired batteries, and as a result, the capacity utilization rate is less than 5%40 for the typical recycling companies in China at present, and a low capacity utilization rate leads to poor profitability for them.
Figure 53: The existing production capacity of major recycling companies for power batteries as a percentage of the industry (incomplete statistics)
北京赛德美，0.9% Beijing SDM, 0.9% 其他，7.6% Other, 7.6% 格林美，21.6% GEM, 21.6% 华友钴业，13.9% Huayou Cobalt, 13.9% 巴特瑞，10.8% BATERUI, 10.8% 江门长优，10.8% Jiangmen Changyou, 10.8% 赣州豪鹏，7.6% GANPOWER, 7.6% 赣锋锂业，7.3% Ganfeng Lithium, 7.3% 比克电池，6.5% BAK, 6.5% 广东光华，4.5% GHTECH, 4.5% 邦普循环，4.3% Brunp Recycling, 4.3% 芳源环保，4.3% Fangyuan Environmental Protection, 4.3%
Source: On the Recycling of Power Batteries (PPT), Li Yuke, CATARC
The economic performance of recycling lithium iron phosphate batteries is to be improved. Because lithium iron phosphate batteries do not contain precious metals, and their recycling is significantly influenced by the price fluctuation of lithium carbonate, their recycling is less economical than the recycling of ternary batteries. Based on the economic
39 MIIT, http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057542/n3057547/c6275968/content.html 40 China NEV Industry Development Report (2020), CATARC, September 2020 145
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performance data of a company in the industry using the wet method to recycle ternary batteries and lithium iron phosphate batteries, ternary batteries have a better economic performance; whereas for lithium iron phosphate batteries, they must be collected from the users at RMB0 so that the value of metals obtained from recycling them can cover their recycling cost (based on the average market prices of related metals in the first half of 2020). Although industry leaders have achieved some progress in improving the economic performance of recycling lithium iron phosphate batteries by optimizing the recycling process and increasing the recovery channels for retired batteries, there is still significant room for further optimization.
Table 36: A benefit-cost comparison of recycling 1 ton of ternary batteries (NCM622) and 1 ton of
lithium iron phosphate batteries using the wet method (based on the average market data in the
first half of 2020)
Value of the Battery Recycling recycled Remarks types cost (RMB) metals (RMB)
The value is calculated based on cobalt and nickel only (or based on the metals of ternary materials). Based on NCM622, the recycling cost accounts for about 50% of the battery pack's residual value. The Ternary price fluctuation of metals in the 16829 8400 (NCM622) marketplace has an impact on the value generated by battery recycling. The actual value is determined by the average prices of cobalt and nickel in the month as well as the prices of materials as products from the wet metallurgy. The value is calculated based on lithium only. For lithium iron phosphate, based on the ratio of the current market value and Lithium iron the recycling cost, basically the value is 2000 1984 phosphate on a par with the cost, so they can only be collected from the users at RMB0 (the value is calculated mainly based on lithium). Source: A survey made by a company in the industry
Table 37: The recovery prices of ternary and lithium iron phosphate power batteries in a certain
province during May-June 2020
Recovery prices Types Battery types Actual forms (RMB/Wh)
Ternary power Lithium batteries for Pack 0.3-0.4 batteries testing
146 III. Issues with Promoting the Effective Life Cycle Asset Management of Power Batteries
Grade B lithium Cell 0.4-0.5 batteries
Lithium batteries for Lithium iron Pack testing phosphate power 0.2-0.3 Grade B lithium batteries Cell batteries
Source: Data provided by SK Innovation
(5) There is no commercialization model for data products of power batteries, and data owners are not motivated
Firstly, power batteries have a long life cycle, building a data platform requires a big investment, it's hard to realize a closed-loop and demonstrate its value in a time, and data owners are not motivated. Secondly, there are no sound data analysis methods for major issues such as battery attenuation, thermal runaway, and fault alarm; Data application scenarios are still limited by technological development; The value of data application is not sufficiently demonstrated, and business models need to be further explored.
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IV. Recommendations for Promoting the Effective Life Cycle Asset Management of
Power Batteries
1. Improve relevant policies
(1) Enhance policy support, standardize regulations on the battery swapping industry, and create an ecosystem for large-scale asset management
Firstly, enhance the support for the construction of battery swapping networks. Leverage the “New Infrastructure” opportunity to include the construction of battery swapping stations in the urban and rural development programs; Optimize relevant approval and management policies; optimize the arrangement of battery swapping networks; Allocate subsidy funds appropriately; Enhance the support for the construction and operation of battery swapping stations; Promote the application of battery swapping stations. Secondly, improve the management system for the entire battery swapping industry. First of all, eliminate any policy that hampers the development of the battery swapping model; Guarantee the legal rights and rational interests of players in access management, registration, used-car circulation, etc. Secondly, define safety responsibilities under the battery swapping model; eliminate any ambiguity in the definition. In addition, battery standardization is the foundation for the promotion of the battery swapping model; Manufacturers and recyclers should work together to launch pilot application programs for the purpose, so as to provide field data and reference for the making of industry standards. (2) Introduce legislation on the recycling of retired batteries, and keep improving the management system across the industry, to ensure the realization of closed-loop asset management Firstly, accelerate the introduction of an enforceable law for battery recycling. Ensure its connection with other related laws and regulations, to provide the legal basis for related policies. Increase penalties and punishments for unauthorized “small workshops” and for the behavior of using cascade batteries in recycling-unfriendly areas, and regulate the industry through laws. Secondly, encourage the general “vehicle-battery separation” model at the policy level. Promote the transfer of power batteries ownership from private consumers to battery asset companies, and explore a solution to the challenge of recycling power batteries in the private
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sector.
Thirdly, formulate incentive policies for the battery recycling industry. Battery recycling companies not only need to take their responsibility for business operation, but also need to take the important responsibility for the society, for the environment, and for safety. In a stage when the industry has not yet achieved the economies of scale, relevant government organs can work out incentive policies to support activities in the recycling industry where it's relatively difficult to become economically viable under the existing conditions.
Fourthly, formulate management measures for regulating and guiding the development of the cascade utilization industry. On the one hand, specify what to be managed such as the responsibility and obligation of enterprises engaged in cascade utilization, the requirements on products for cascade utilization, and the application scope, and work out the regulatory measures for enhancing safety and environmental protection etc.; on the other hand, encourage cascade utilization pilot programs in the feasible areas, build a business model for cascade utilization, and ensure that cascade utilization will develop in the recyclable and traceable direction. (3) Formulate regulatory policies on the life cycle data of power batteries, to ensure the safety, integrity and effective utilization of data assets
On the basis of previous framework of policies, enhance the top-level design for the data management of power batteries, clarify the strategic orientation for the life cycle data platform of power batteries, identify the data requirements for various aspects of power batteries, work out specific implementation measures, and promote innovations, so as to guide industry players to explore and apply new technologies, new models and new business forms, to fully tap into the value of power batteries' data across their life cycle. (4) Improve the peak-valley price mechanism for end-users and the regulatory measures for connecting EVs to power grids, to build a value-creation system for assets
Firstly, different peak-valley price mechanisms can be designed for private and public charging piles. Since EV users are eligible to apply for building their own charging piles, relevant government organs may design a peak-valley price system tailored to private charging piles, which have a direct power supply and are separately metered; for public charging piles, relevant government organs may design a policy that separates charging service fees from electricity prices, to guide the collection of charging service fees at the valley rates of electricity.
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Secondly, specify related management requirements for EVs to get connected to power grids to be traded in the power market. On the one hand, gradually ease the access restrictions for EVs, participate in such supportive services as frequency modulation in pilot programs, and gradually promote them when proven; on the other hand, work out a regulatory mechanism for connecting EVs to power grids, clarify the preconditions for EVs to feed electricity into power grids, and formulate the technical standards, engineering specifications, related procedures and management measures for EVs and charging piles to get connected to power grids, to ensure that EVs meet the overall requirements of power grids after connection. 2. Refine industry standards
(1) Improve the standard testing system for BMS
On the basis of the existing standard GB/T 38661-2020, Technical Conditions for the EV Battery Management System, identify the BMS-related tests and the specific test standards in accordance with the characteristics of EVs, specify the requirements for key technical parameters, and supplement and update them with respect to the BMS electrical/environmental adaptability test as well as the calculation accuracy and test method for the SOH, to ensure the quality of the BMS product, to regulate the market environment, and to maintain sound development of the market. (2) Optimize the current national standard for standardization of power battery size, to provide the basis for promoting the efficiency of asset operation
On the basis of the existing national standard GB/T 34013-2017, organize discussions with enterprises in the industry, led by standard-setters, to formulate a national standard on the unified dimensions and interfaces of power batteries at the cell and module level first that can really promote the entire industry to reduce costs in connection with the results of the industry's pilot programs. (3) Accelerate the introduction of supportive standards for battery swapping, to regulate the development of the industry
Firstly, promote the formulation of technical standards for battery swapping. Specify the dimensions, electrical/mechanical interfaces and communication protocols of battery packs to ensure standardized design and interchangeability of batteries. One way is to determine the dimensions for a certain number of battery packs, tailored to battery swappable EVs, and promote them in the industry. The purpose is to create a battery swapping ecosystem as soon as possible to expand the swapping market gradually.
Secondly, reinforce requirements for technical specifications. For the prominent issues faced 150
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by the industry at present, refine the technical standards for batteries, vehicles, and swapping stations, ensure proper alignment with existing technical requirements; enhance the management to ensure compliance with performance and safety standards.
Thirdly, promote the development of the monitoring standards and systems for the connection between battery swapping vehicles and battery swapping stations, so as to facilitate vehicle safety monitoring and battery source tracing. (4) Formulate communication standards for two-way charging and discharging of EVs, and promote the implementation of the new model
The first is the vehicle-pile communication standard. Amend the national standard GB/T 27930-2015 to support two-way DC charging and discharging of EVs, and verify the reliability of this standard in supporting the auxiliary frequency modulation service.
The second is the pile-grid communication standard. Explore the communication interfaces as well as information exchange content and process between charging piles-charging service providers-power grids of different players and different technical paths, and formulate relevant standards; encourage power grid operators to share information about power distribution transformers under the premise of ensuring the safety of power grid operation, and support the participation by diverse players. (5) Improve the data standards for various stages of the power battery life cycle, to lay a foundation for the circulation and integration of data assets
Firstly, identify the needs for life cycle data of power batteries. In connection with the industry's status quo, identify the needs of different parties, i.e. vehicle manufacturers, battery manufacturers, charging service providers, recyclers, and governments; exchange ideas, regulate data monitoring and collection in various stages of power batteries' life cycle, ensure the integrity and traceability of data, ensure efficient integration and utilization of data assets.
Secondly, unify data collection formats. Standardize data collection frequencies and precisions in different activities and under different application scenarios, ensure proper alignment with the existing battery data standards, and take necessary regulatory measures to ensure data quality, to increase public credibility, so as to lay the foundation for the construction of a data platform across the life cycle of power batteries. 3. Support technological innovations
(1) Attach importance to BMS software and hardware innovations
Firstly, attach importance to the development of BMS hardware. Work out a list of materials
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for BMS, pay close attention to restraints such as the key chips, avoid reliance on import, enhance domestic R&D and technological innovations, promote local enterprises, increase localization rate, and enhance IP protection.
Secondly, attach importance to the development and optimization of the software algorithms for BMS. Make standards for battery dimensions, performance and safety; Use big data analytics, AI, and machine learning to facilitate algorithm development, enhance compatibility, and promote the accuracy in battery estimation.
Thirdly, create an BMS development ecosystem where different parties are interconnected and can share information. Develop BMS as part of a vehicle; Define its functions and design, promote interconnection between vehicle manufacturers, power battery manufacturers, and third-party BMS enterprises; Allocate R&D resources, share vehicle operation data, power batteries' technical parameters, and software technologies; Leverage the strengths of each other to break through key technologies, and develop high-quality products. (2) Conduct research on power battery technologies that support V2G
On the one hand, different parties including vehicle manufacturers, battery manufacturers and research institutions can collaborate with each other to conduct tests and researches on the attenuation of power batteries under the V2G model, and to optimize the design of BMS and relevant management strategies for charging and discharging, leveraging the operation and regulatory platforms for power batteries and big data analysis; on the other hand, promote the development and industrialization processes of new materials for power batteries. In future, solid-state batteries are expected to increase the cycle life of batteries.
(3) Enhance R&D investments on key technologies of the recycling industry
Firstly, attach importance to the digitization and intellectualization of cascade utilization. Work on battery assessment methods using life cycle data; Develop smart devices for testing, pre- treating, and recombining battery products for cascade utilization; Build user-side data platforms for battery products in cascade utilization.
Secondly, carry out in-depth studies on the recycling process of lithium iron phosphate power batteries. Enhance the economic performance of recycled lithium iron phosphate batteries through technical innovations, ensuring that they are recycled in a standardized, environment- friendly and profitable manner. 4. Promote commercialization
(1) Work on the feasibility of promoting industry-grade, standardized power batteries Conduct adequate survey, initiated by research institutions and industry associations, on
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IV. Recommendations for Promoting the Effective Life Cycle Asset Management of Power Batteries
China's major battery manufacturers, vehicle manufacturers, battery swapping service providers, and recyclers; Launch pilot programs of standardized batteries by organizing leading enterprises at different segments of the industry; Verify the actual outcomes of cost reduction for both producers and recyclers driven by standardization of power batteries; Work on the feasibility of promoting industry-grade, standardized batteries; Develop and promote solutions to main obstacles; Research on large-scale promotion of swapping-related business models. (2) Create a battery swapping ecosystem across the industry, and explore new business models for asset operation and management such as the "battery bank"
Firstly, enhance industry collaborations. Guide battery manufacturers, vehicle manufacturers, battery swapping service providers, financial institutions, and recyclers to collaborate with each other across the industry; Improve efficiency through reasonable division of labor; Tap into life cycle values of battery assets; Build a business model where enterprises share risks and benefits.
Secondly, encourage business model explorations. Guide enterprises to initiate integrated innovations with respect to products, services, business models; Leverage financial tools and data business to enhance consumer experience of value creation; Promote the validation of new business models such as the "battery bank"; Work out a clear, all-purpose, and feasible way to make profit. (3) Promote the implementation of V2G pilot projects, and explore the feasibility of business models
Implement V2G pilot programs in different regions across the country; Encourage participation by different parties, including power grid companies, electricity users, charging service providers, vehicle manufacturers, battery manufacturers, and research institutions; Carry out technical and economic feasibility studies to provide reference for policy and standard making; Explore a V2G business model that is applicable to China. (4) Enhance collaboration and interaction among upstream and downstream players across the power battery recycling industry to bring down costs
Firstly, incorporate the need for recycling into the design of battery products. Enhance the collaboration of different players including power battery manufacturers, vehicle manufacturers, cascade utilization service providers, and recyclers, to work out a scheme to integrate the needs for cascade utilization and recycling into the development and manufacturing of power batteries, aiming at launching demonstrative products in the industry.
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Research on Power Battery Full Life Cycle Asset Management
Secondly, promote the construction of standardized recycling networks. Explore a model under which enterprises across the industry work together to build and share a recycling service system; Define the responsibilities and improve the management system; Promote the establishment of a standard for the construction of the recycling network; Enhance the utilization rate of the network; Ensure that enterprises across the industry can optimize resource allocations in various regions.
Thirdly, enhance transportation efficiency of retired batteries. Explore the best solution for the transportation of retired batteries through the collaboration of players including power battery manufacturers, recyclers, and transportation companies, to enhance transportation efficiency and reduce transportation costs. Promote the establishment of relevant industry standards.
Fourthly, encourage innovative collaboration models. Create an operation center in a region, funded and created by all players in the battery recycling industry in the region and the local government. The center will provide basic services such as the recovery, transport, storage, tracing, residual value assessment, and disassembly. This can reduce costs and promote the establishment of relevant standards for the industry. The enterprises can leverage their own advantages in the cascade utilization and material recycling stages to gain economic benefits. (5) Guide and cultivate the construction of the shared life cycle data platforms, to promote the realization of more application scenarios
Firstly, promote the construction of shared data platforms across the life cycle of power batteries. Promote the construction of shared data platforms by promoting collaboration across the industry and smoothing the pathways for data sharing among different enterprises. Establish sound mechanisms for the trading and pricing of data assets, and accelerate the integration and circulation of data resources. Enhance collaboration between industry, universities and research institutions; Build data analysis models for key performances, safety management, fault alarm, and so on by leveraging electrochemical principles, big data and machine learning technologies.
Secondly, tap into the commercial value of data and promote the realization of more application scenarios. Taking advantage of the data accumulated throughout the life cycle of batteries, explore in-depth application of battery data platforms in such scenarios as technical R&D, product planning, used-car market, finance & insurance, and recycling, based on battery designs, performance parameters, operation and usage, so as to maximize the value of data assets.
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