+61 418 104 496 info@zenaji.com

The five biggest lithium-based battery cell manufacturers in the world right now are all located within China with a total capacity of being able to manufacture up to 250 GWh per year. The markets for battery cells are expanding in electric vehicles, power grid storage, defense such as submarines, fork lifts, and drone among many others.

For all these markets Australia has no manufacturing capacity, but we are a significant raw material supplier to China for these products. Unfortunately, due to political issues and low market size in Australia we have no control over the price of importing these cells from China.

Given China produces vast quantities of these lithium-ion based cells a relatively small plant in Australia would struggle to be price competitive. Australia for defense security and indeed industry and energy storage security needs to manufacture its own cells in mid volumes in markets that the Chinese are not focused on.

Lithium-ion cells are best suited to general electric vehicles, aviation, buses, submarines, domestic and industrial energy storage requires different technology focused on different parameters. For example, for drones it’s all about lightweight/low cost/ energy density, lifespan can be reduced. For domestic and industrial energy storage/ submarines/ buses the critical parameters are safety, high cycle life and low lifetime storage cost.

Currently Lithium Titanate (LTO) offers significant advantages as it is totally fire and explosion immune and offers a lifespan of over eight times that of other types at only 50 per cent more initial cost.

The process of making these batteries is known and all the plant to establish the factory is available. Our estimates suggest a pilot plant could be established to produce around 800,000 cells per year (two to three per minute) at a cost including all facilities at under $15 million and the product would be priced under the existing Chinese product supplied to Australia.

We suggest this small scale facility could be replicated on a state by state basis, effectively franchising the operation and improving the knowledge and set up every time and so reducing the risk of a massive one off investment whilst maximizing local employment opportunities.

This strategy will protect our defense as a nation, our grid stabilization and the support of long term 30 year plus assets – not the 7 year expectancy of the current generation of Lithium Ion cells. In addition it will improve our international trade imbalance and increase regional employment.

By Charlie van Dongen, CTO Zenaji

Share This