ELECTRIC CARS AND USE OF LANKAN NATURAL GRAPHITE FOR LITHIUM-ION BATTERIES

14 August 2014 04:35 am Views - 8185

It has been reported that multibillionaire Elon Musk, CEO of Telsa Motors is planning to set up a Giga factory for the manufacture of 500,000 electric cars by 2020 in the United States at a cost of US$5 billion.

Musk was also known to have built his own rocket ship and sent it to space. Electric Vehicles (EVs) from Telsa Motors are also being sold in Sri Lanka and the local news media recently announced that Richard Peiris is planning to open a number battery charging stations in the country.

The decision to locate the factory has not been taken by Telsa but it has been narrowed down to Texas, Arizona, New Mexico, or Nevada and construction is scheduled to start this year.

The lithium Ion batteries to power the electric cars will be supplied by Panasonic Corporation of Japan and a press release by Telsa on 31 July 2014   states “According to the agreement, Telsa will prepare, provide and manage the land, buildings and utilities. Panasonic will manufacture, invest in the associated equipment, machinery, and other manufacturing tools based on their mutual approval.” Panasonic is likely investing about US $ 196 million to US$ 295 million on this project.

Raw materials used for lithium –ion batteries

The three important minerals used in manufacture of the lithium –ion batteries are cobalt, lithium and graphite that are not mined in large quantities in the United States and have to be imported for the Telsa plant.

According to Industrial Minerals Data (a London-based research firm focusing on raw materials for industrial processes), the project will need 7 000 metric tons of cobalt at full capacity out of a world output of 110 000 metric tons, lithium about 25,000 tons from a world production of 125,000 tons increasing the battery demand by 50 per cent and demand in the world market for these minerals by 20 per cent.

The major countries   that produce cobalt and lithium are the Democratic Republic of Congo (DRC) and Chile respectively. It is also reported that 50 percent of world output of cobalt comes from DRC and Telsa   will have to scale down the production of EVs if supply of cobalt is interrupted due to the unsettled political situation in DRC.

Natural graphite stands to play a significant role in reducing the unit costs of battery production  and in reducing the environmental footprint associated with production

The major raw material presently used for Li- ion batteries is synthetic graphite, and the cost is much higher than natural graphite. The world supply of battery grade graphite comes mainly from China producing   flake graphite of low grade that has to be processed using acids causing environmental hazards. However switching to another source of supply would add to costs and according to UBS analysts, (a global financial service company based in Switzerland), 76 percent of the price of 1   battery are attributed to materials costs which will not achieve the target of reducing the costs by 30 per cent as envisaged by Telsa.

In an article posted in  Technology Metals Research –http ://www.techmetals research .com  by Gareth Hatch  on   Batteries , graphite , Hybrids and EVs  it is stated that “synthetic graphite is twice  the cost of battery- grade  natural graphite and is typically derived from petroleum coke  which relies on crude oil as its source. Telsa has stated its goal of reducing the unit cost of battery production by a minimum of 30 per cent between now and the initial start -up of the  Model E in 2017. Natural graphite stands to play a significant role in reducing the unit costs of battery production  and in reducing the environmental footprint associated with production , if acid based purification steps can be avoided.”

It is also reported that the existing flake graphite market dominated by China up to 73 percent,  but reserves are fast being depleted in addition to the environmental problems caused by using acid to upgrade the carbon content and purify to 99.9 percent Cg.

Vein and lump   graphite from Sri Lanka

The recent surge of foreign junior exploration and mining companies (JMCs) to Sri Lanka is to launch projects for exploration and mining of high grade vein and lump graphite for value addition and some companies, it is revealed,  will  produce graphene to the required specifications for Li- ion batteries. These companies have bought local companies with exploration licenses and most of them have been registered with the BOI.

 One of these companies   carried out an air borne vertical electromagnetic survey (VTEM) and another   is presently engaged in a drilling. Another company  is developing a graphite mine close to the government owned Kahatagaha mines and yet another is in the process of buying equity and operating an  abandoned  mine close to Kahatagaha.  Most of these operations are given wide publicity in “Proactive Investors Australia” the market leader in producing news, articles and research on Australian Stock Exchange (ASX) small and mid capitalization stocks with distribution in Australia, UK, North America and Hong Kong/China.

I have written two articles titled “Revival of Graphite mining in Sri Lanka- a critical review “and “Need for national Policy on minerals value addition “ in the Daily Mirror Business Section on  25 September 2013  and 11 March 2014 respectively  analyzing  the graphite industry and highlighted policy initiatives to add value by encouraging local research institutes especially the Institute of Nanotechnology  which has  already commenced research on  value addition to  vein and lump graphite by  converting to graphene for the Li –ion batteries .

One foreign company has stated that our graphite has been tested and found suitable   to produce graphene  for Li- ion batteries  but also stated that they have signed a contract with a University in Australia to carry out further research.

Evaluation of Sri Lanka Graphite to Produce Li- ion batteries

 As for both flake and vein graphite the quantity and grade specified as carbon in graphite (Cg) is important. However the type and size of flakes and the carbon content (over 99.9 per cent Cg) and its adaptation to the particular   process will be important to evaluate any project.

According to Gareth Hatch quoted in the web site given above, battery grade graphite apart from  very high purity levels (99.9per cent Cg) “needs to be spheroidized using careful processes that convert the flat graphite flakes into potato like shapes which pack much more efficiently  into a given space”. Further it is stated that “spheroidizing the graphite reduces their size, a process known as micronization. Standard battery- grade   materials require an average diameter of 10 to 30 micron, so in theory, feedstock materials with flake sized greater than 30 micron (+400 mesh) can be used .However starting purity levels tend to decrease with flake size, so flake materials with average diameter of 150 microns (+150 mesh) or greater is typically used” and further states  “if larger flakes are used, the more energy will be needed to reduce the average size of the flake to the required 10 -30 microns and smaller particles are preferred as it is easier for the lithium ions in the electrolyte to diffuse between graphite particles”.

  For conversion of Sri Lankan vein and lump graphite to the required specifications for use in Li –ion batteries, tests should be carried out to produce artificial flakes   with the standard specifications for the battery industry. To this end, Kahatagaha graphite could be flaked easily by  flaking machines.

Technology Materials Research (TMR) whose web site was given earlier, tracks graphite projects under development via the TMR Advanced Graphite Projects Index   (http:www.techmetalsresearch.com/metricsindices/tmr-advanced –graphite-projects-index)

In the Project Index as at March 2014, only 20 graphite projects are being developed by 16 different companies in 8 countries namely Canada, Australia, Mozambique, Tanzania, South Korea, USA, Swaziland and Madagascar and  have the potential to become successful graphite mines given the increase in demand for Li –ion batteries.

Telsa would require over 30 900 tons of flake graphite for  batteries   from a feedstock of 102,000 using the present processing  techniques. This over 125 per cent of the global natural flake graphite market currently at 60 -85 ,000 t/year.

However, to reduce transportation costs and have an uninterrupted supply of graphite, Telsa   will target only Canadian   mines that are in an advanced stage of development.

Recommendations and conclusions

The major focus   by the foreign Junior Exploration and Mining Companies (JMCs) in Sri Lanka quoted in the Australian and Canadian Stock Exchanges numbering over 7   should be to initiate research in leading institutions abroad on the use of our lump and vein graphite to substitute for flake in Li- ion batteries, whose demand will increase rapidly with projects like the Telsa megaproject targeting production of 500 000 Electric Vehicles per year from 2017. This would entail producing graphene in spherical form for the batteries.

If such research efforts are successful, Sri Lanka will be a major hub for the Li –ion battery industry and will attract companies like Panasonic from Japan to locate their plants in Sri Lanka and supply   EV manufacturers the necessary battery packages according to the required specifications.

However, the Government of Sri Lanka should be cautious as some junior foreign graphite exploration and mining companies (JMCs) are trying to enter the graphene market by giving wide publicity abroad without carrying out research on the suitability of our natural graphite. It is noted that these companies invariably try to create a new market for natural graphite and their investments will be focused only on mining operations. Further, some of these companies  quote Sri Lanka natural graphite with high carbon (Cg) values in  Proactive Investors Australia, the market leader in producing news , articles and research on  ASX distributed in Australia ,Canada and Hong Kong/China  to enhance the share prices even without holding mining licenses. These companies have also announced acquisition of large tracts of land for exploration in Sri Lanka contravening the recent laws on ownership by foreign nationals and companies and JVs with local companies on an equity split.

To this end, it is pertinent to quote from the Mines and Minerals Act, No. 33 of 1992 Part 11 “Ownership of Minerals and Issue of Licences “Article 28 (3) which states that “A   licence issued to any person under this Act, to mine any mineral may transfer to the licensee the ownership of any mineral mined under the authority of such a license”. Further   under Article 26 (1) of the said Act “the ownership of minerals is hereby vested in the Republic, notwithstanding any right of ownership or otherwise which any person may have to the soil on, in or, under which minerals are found or situated”

If research efforts are successful, Sri Lanka will be a major hub for the Li –ion battery industry and will attract companies like Panasonic from Japan to locate their plants in Sri Lanka

In conclusion, the GSMB should carry out detailed surveys to locate flake graphite deposits and the Research Institutes including Universities in collaboration with the GSMB, carry out tests on using our vein or lump graphite to produce flake using a flaking machine and also identify graphite that could be flaked like the Kahatagaha graphite for production of graphene for  Li – ion batteries.

(Most of the  information which are of a technical nature was accessed from an article  titled “Going Natural :the Solution to Telsa’s Graphite Problem posted by Gareth Hatch on March 25 2014 In “Batteries , Graphite , Hybrids, and EVs News Analyses in Technology  Metals Research –  web site http:www.technologymetasls research .com and is acknowledged.  References related to this subject valuable for researchers are also given in this web site)

(Writer is a retired Economic Affairs Officer United Nations ESCAP and can be reached at fasttrack@eol.lk )