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The sale of electric vehicles (EVs) in high volumes began 12 years ago, when Nissan introduced its LEAF. Since then, the number of EVs in use has grown rapidly and the question of what to do with the batteries at the end of their life powering vehicles is becoming a serious matter. The batteries can still be used for other purposes and some manufacturers are exploring practical ways of reusing them.

One possible second-life use case is being tested in India by a German–Indian start-up called Nunam. The aim of the project is to explore how modules made with automotive high-voltage batteries can be reused by installing them in electric rickshaws.

“The old batteries are still extremely powerful,” says Nunam co-founder Prodip Chatterjee. “When used appropriately, second-life batteries can have a huge impact, helping people in challenging life situations earn an income and gain economic independence – everything in a sustainable way.”

3 prototypes
The non-profit start-up based in Berlin and Bangalore is funded by the Audi Environmental Foundation. Nunam developed the three prototype rickshaws in collaboration with the training team at Audi’s Neckarsulm site which, in turn, benefits from the intensive intercultural exchange. This is the first joint project between both AUDI AG and the Audi Environmental Foundation in addition to Nunam.

The 3 electric rickshaws are powered by used batteries taken from test vehicles in the Audi e-tron test fleet. They will appear on Indian roads in early 2023 when the pilot project gets underway with a non-profit organization. Women in particular will be able to use the all-electric rickshaws to transport their goods to market for sale, all without the need for intermediaries.

Looking for new uses
The start-up’s primary goal is to develop ways to use old batteries as second-life power storage systems, thus both extending their lives and using resources more efficiently. “Car batteries are designed to last the life of the car. But even after their initial use in a vehicle, they still have a lot of their power,” Chatterjee explained. “For vehicles with lower range and power requirements, as well as lower overall weight, they are extremely promising.”

“ In our second-life project, we reuse batteries from electric cars in electric vehicles; you might call it electric mobility ‘lite’. In this way, we’re trying to find out how much power the batteries can still provide in this demanding use case,” he said.

Reusing e-waste
E-rickshaws have an ideal eco-efficiency. With a high-energy-density battery pack and comparatively low vehicle weight, the electric motor doesn’t have to be particularly powerful – especially since rickshaw drivers in India travel neither fast nor far. While electrically-powered rickshaws are not an uncommon sight on the roads of the sub-continent today, they often run on lead-acid batteries, which have a relatively short service life and are often not disposed of properly.

At the same time, rickshaw drivers charge their vehicles primarily with public grid electricity, which has a high proportion of coal-fired power in India. Nunam has a solution for this as well: The e-rickshaws charge using power from solar charging stations. The solar panels are located on the roofs of the local partner’s premises. During the day, sunlight charges an e-tron battery, which acts a buffer storage unit. And in the evening, the power is passed on to the rickshaws.

This approach makes local driving largely carbon-free. The benefit is that the electric rickshaws can be used throughout the day – and still be charged with green power during the evening and night. In India, where the sun shines all year round, placing solar panels on the roof is an obvious solution.

Open-source platform encourages imitators
Nunam will continuously monitor the e-rickshaws’ performance and range. The social entrepreneurs make all the e-rickshaw data they collect available to potential imitators on the open-source platform. In fact, imitation is expressly encouraged.

“Initiatives like the one pioneered by Nunam are needed to find new use cases for e-waste. Not only in India, but worldwide. So Nunam shares its knowledge to motivate more initiatives to develop products with second-life components that can drive the eco-social revolution forward,” said Audi Environmental Foundation Director Rudiger Recknagel.

And even after the battery has spent its first life in an Audi e-tron and its second in an e-rickshaw, it has not necessarily reached the end of the road. In a third step, the battery could still be used for stationary applications such as LED lighting. “We want to get everything possible out of each battery before recycling,” said Chatterjee.

Just as fuel, whether petrol or diesel, is a necessary component for a car with an internal combustion engine to run, electricity is necessary for a full-electric or hybrid electric vehicle to run. Like the liquid fuels which are stored in containers on board the car, electricity is also stored in a battery pack which can be ‘refuelled’ by recharging the pack.

Since demand for batteries will keep growing – even accelerating as electrification progresses – the bigger carmakers that have the financial resources are finding ways to assure supply in future. Some, like BMW, Mercedes-Benz and Hyundai have set up factories around the world while others are establishing joint ventures for such production facilities.

Lithium-ion battery pack from a current Volvo PHEV model.

Develop sustainable battery production
The Volvo Car Group has announced plans to establish a joint-venture with Swedish battery company Northvolt to develop and produce more sustainable batteries, tailored to power the next generation of fully electric Volvo and Polestar vehicles.

As a first step for the 50:50 joint-venture, the two companies intend to set up a R&D centre in Sweden that will begin operations in 2022. The centre will draw on the battery expertise within both companies and develop next-generation, state-of-the-art battery cells and vehicle integration technologies, specifically developed for Volvo and Polestar models.

New gigafactory to be built
More significantly, the joint-venture will also establish a new gigafactory in Europe with a potential capacity of up to 50 gigawatt hours (GWh) per year, with production scheduled to start in 2026. As part of the plans, Volvo Car Group also looks to source 15 GWh of battery cells per year from the Northvolt Ett battery plant in Skelleftea, Sweden, starting in 2024.

Rendering of the Northvolt Ett battery plant in Sweden when it is completed.

The new gigafactory, planned to be powered by 100% clean energy, is expected to employ around 3,000 people. The location of the new plant is yet to be decided. The first model to use battery cells developed through the joint-venture will be the electric successor to current XC60 SUV.

This development is a vital one for Volvo Cars’ ambitious electrification plans that will see 50% pure electric vehicles by the middle of this decade and, by 2030, only fully electric cars will be sold. Assured supply is therefore crucial to long-term plans and while planners in some countries imagine that policies affecting the auto industry can be introduced within a short period, the industry requires many years to prepare for changes and execute them.

Future Polestar models will also use batteries from the joint-venture factory.

For Polestar, it gives a further boost to its European growth ambitions and underlines its commitment to the ‘Polestar 0’ project, which aims to create a truly climate-neutral vehicle by 2030.

Reduce environmental footprint 
Today, the production of batteries for Volvo Car Group’s fully electric cars represents a large part of the car’s total lifecycle carbon emissions. By working with Northvolt and producing batteries near its manufacturing facilities in Europe, Volvo Car Group can reduce the environmental footprint attributable to battery sourcing and production for its future cars.

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Besides range anxiety – the concern about how far you can go on a fully charged battery pack – has been on the minds of people who consider hybrids or electric vehicles, the other issue has also been the cost of the battery pack itself. In the early years, when the technology was still young, battery packs were very expensive and discouraged many people. But there has been constant advancement of the technologies, along with prices coming down, although they still are much more expensive than the small batteries that you see in the engine bay.

The battery packs have generally been reliable and how long they last has depended on many factors, both environmental as well as driving. It’s like batteries in laptops or mobilephones – some people enjoy a long service life while others may have to replace them within a couple of years when they cannot hold their charge properly.

A Volvo lithium-ion battery pack.

XC90 – first Volvo PHEV in Malaysia

PHEVs sold since December 2015 are covered
To give customers peace of mind, many companies have offered longer warranties on the battery packs. Volvo Car Malaysia announced its extended warranty in March 2020 but the coverage was only for models in its Plug-in Hybrid Electric Vehicle (PHEV) range registered from January 1, 2020.

Now the company has extended the coverage to all Volvo PHEVs purchased since December 3, 2015 when the XC90 T8 PHEV was launched in Malaysia. The company says that this has been prompted by ‘the enthusiastic response from customers and realising the positive impact that long-term electrification can bring to the environment’.

The S60 T8 is one of the models in Volvo’s PHEV range.

“As we continue our journey into sustainability, we are happy to announce this new, extended warranty coverage for our customers who have purchased any Volvo PHEVs since the launch of our first XC90 PHEV in Malaysia. This is our way of showing gratitude to the early adopters and also for those who are striving to make a more sustainable decision,” said Nalin Jain, MD of Volvo Car Malaysia.

The Volvo range of PHEVs for the Malaysian market consists of the S60 T8, XC60 T8, XC90 T8, and S90 T8. Prices range from RM295,888 to RM409,888 (excluding insurance).

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BMW Group Malaysia has been a driving force in electrified vehicles for many years. This mirrors its global electrification initiatives not just in products but also in related activities such as battery pack manufacturing. It’s therefore not surprising that many of the BMWs on the roads are electrified, with plug-in hybrid powertrains.

The cost of battery packs replacement has been a concern of many owners who buy hybrids and plug-in hybrid electric vehicles (PHEVs). Though designed to last a long time, the battery packs might have problems and the cost of replacement can be high as they are specialised and sophisticated units, not like the common small lead-acid battery in the engine bay.

BMW battery pack is sophisticated and advanced energy storage system, which is why it costs a lot to replace.

To provide peace of mind to owners, the BMW and MINI brands in Malaysia now offer an extended PHEV battery warranty programme. This new programme extends – by an additional 2 years or 60,000 kms – the existing programme to 8 years or a maximum of 160,000 kms.

BMW 740LE XDrive
BMW 740LE XDrive – one of the electrified PHEV models in Malaysia

The New Battery Warranty Programme is also available as an extension via the BMW and MINI Aftersales Upgrade Programmes for the BMW 330e, BMW X5 xDrive 40e, BMW 530e and MINI Countryman PHEV at RM2,200 as well as for the BMW 740Le at RM7,600.

However, this PHEV Battery Warranty Programme is available only from now until December 31, 2020.

Production of High-Voltage Batteries for BMW Hybrid Vehicles underway in Thailand

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The lead-acid batteries in motor vehicles have been around for many decades and because they are made from elements that can be recycled, there is an established ‘business’ in collecting and recycling batteries. Even the guy who collects old newspapers will take them as the lead, plastics and even the sulphuric acid can also be recycled.

Lead-acid batteries are therefore considered as ‘closed-loop’ products which means that when their ‘first life’ is over, they can be recycled into other products. It is estimated that globally, 98% of such batteries are being recycled.

Honda battery pack recycling

With the advent of hybrid and electric vehicles since the late 1990s, more powerful battery packs have appeared. These are needed to store electricity in large amounts and to power the electric motors. These have not continued with the lead-acid approach which would make the battery packs very heavy as they would have to be very big to store sufficient electricity.

Instead, the battery packs for battery-powered electric and hybrid vehicles use nickel-cadmium (NiCd), nickel–metal hydride (Ni-Mh), and more recently, lithium-ion or lithium-ion polymer. The technology is constantly advancing, and the battery packs are getting more compact while their storage capacity keeps growing, making possible longer travel ranges.

Honda Accord Hybrid battery pack
Battery pack used in an Accord Hybrid.

End-of-life disposal
The manufacturers have been mindful of the fact that the battery packs have an end-of-life and unlike lead-acid batteries, their disposal is not so straightforward. Various solutions have been explored to keep them in service and Honda Motor Europe, together with SNAM (Societe Nouvelle d’Affinage des Metaux), is investigating the possibility of using batteries in a ’second life’ for the storage of renewable energy in industrial applications.

SNAM is a battery recycling company and is increasing its role in partnership with the carmaker to advance the sustainable usability of its end-of-life battery packs. The pan-European arrangement will see SNAM collect and recycle batteries from Honda’s increasing number of hybrid and electric vehicles and either potentially prepare them for ‘second-life’ renewable energy storage uses or extract valuable materials for recycling if they are not suitable for that purpose.

Honda battery pack recycling
End-of-life battery packs can be divided in two types – those that can be reconditioned and continue to function as energy storage units or broken apart and their materials recycled (below).

Honda battery pack recycling

Honda and SNAM have worked together since 2013 to ensure the traceability of end-of-life batterie packs and dispose of them in accordance with European Union environmental standards. The expansion of this agreement will see SNAM collect lithium-ion and NiMH batteries from Honda’s dealer network and Authorised Treatment Facilities in 22 countries, before analysing how suitable they are for recycling and processing them accordingly.

Second life applications
“As demand for Honda’s expanding range of hybrid and electric cars continues to grow, so does the requirement to manage batteries in the most environmentally-friendly way possible. Recent market developments may allow us to make use of these batteries in a second life application for powering businesses or by using recent improved recycling techniques to recover useful raw materials which can be used as feedstock into the production of new batteries,” said Tom Gardner, Senior Vice-President at Honda Motor Europe.

Safe and low carbon transport is utilised for the collection of used batterie packs. On arrival, SNAM assesses which battery packs are valid for inclusion in a new energy storage device. These are then repurposed and made available by SNAM for domestic and industrial applications.

Honda battery pack recycling
One application for recycled battery packs.

When battery cells are damaged and unsuitable for ‘second life’ applications, materials such as cobalt and lithium can be extracted using hydrometallurgy techniques involving the use of aqueous chemistry. These can be reused in the production of new batteries, colour pigments or as useful additives for mortar. Other commonly used materials including copper, metal and plastics are recycled and offered to the market for use in the production of a variety of applications.

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In the early years of the auto industry, the factories that produced cars and the parts for them were once confined only to the countries that the manufacturer was established in (BMW in Germany, Toyota in Japan, Ford in the USA, etc). However, as the auto industry rapidly expanded around the globe and cars were being sold in other countries as well, it made sense to produce them closer to the markets. And from the 1960s onwards, as more countries began industrialising – like Malaysia – incentives were also offered to carmakers to invest in local production.

Globalisation of the industry has led to factories being set up all over the world, some to serve a few markets and some as production hubs for regions or even the entire world. The need to have huge volumes for economies of scale that drive down costs is one reason for this approach. There are also political considerations which come into play as exports of vehicles from one country to another need to be ‘balanced’.

While the construction of new factories to make vehicles is ongoing, there is now a wave to establish factories to supply parts and systems for the coming era of electrification. The next decade will see a leap in hybrid and electric vehicles and demand will be great, so the factories must start up now in order to be able to meet that demand.

BMW High Voltage Battery production in Thailand

Incentives matter as well as policy clarity and stability
Choosing a country to build a new factory requires not just careful planning but also consideration of the incentives offered by the government. The investments and job opportunities as well as export potential are also attractive enough to governments to offer investments to attract carmakers. Clarity and stability of automotive policies is also important as carmakers plan over many years and they need to be assured that changes are not made just because a new minister has taken over and had other ideas about the direction.

Thailand has been good at policy stability, which is probably on reason why a number of global players built their production hubs there. Changes of government may occur but policies are maintained and that’s what matters.

BMW High Voltage Battery production in Thailand

BMW High Voltage Battery production in Thailand

BMW chooses Thailand
Following on from BMW Group Thailand’s earlier endorsement for incentives by Thailand’s Board of Investment (BoI) for a 700 million baht (about RM96 million) outlay in BMW plug-in hybrid electric vehicle (PHEV) production, the company has jointly invested with DRAXLMAIER Group in this battery assembly plant, worth 500 million baht (about RM69 million).

“This new beacon for e-mobility innovations will further unlock the competence of Thailand’s automotive industry. The incentives from BoI also symbolize the unity between the public and private sectors in this undertaking towards a sustainable future,” BMW notes.

BMW Group Thailand has thus marked another historic milestone with the inauguration of a local high-voltage battery production plant in partnership with the DRAXLMAIER Group, one of the world’s leading automotive suppliers and a partner of BMW Group since 1966. BMW Group Thailand launched the local assembly lines in July 2019 at the plant in WHA Chonburi Industrial Estate 2. The high-voltage battery assembly plant is assembling both battery modules and the battery itself.

BMW High Voltage Battery production in Thailand

Uwe Quaas, MD of BMW Group Manufacturing Thailand said: “One of the pillars of BMW Group’s global strategy is electrification, and BMW Group Manufacturing Thailand is underlining its commitment to this mission by taking another big step forward in our electro-mobility strategy. The start of local battery production enables us to better respond to growing domestic demand for electrified vehicles in Thailand. This new capability also strengthens the performance of Plant Rayong in fulfilling the country’s mission of sustainable mobility.”

BMW High Voltage Battery production in Thailand

Fully trained workforce
The high-voltage battery is a central element of partially and fully electrified vehicles and a highly sophisticated component that requires specialized skills to produce. Thanks to the advanced training and qualification programs initiated in September 2018, the staff from the DRAXLMAIER Group who have participated in the battery production training program at BMW’s Group Plant Dingolfing – the BMW Group Competence Centre for e-drive production – and the BMW Group pilot plant for e-drivetrains in Munich, are now ready for the high-tech assembly work to produce the latest generation (Gen4) of the BMW Group high-voltage batteries

This involves the use of cutting-edge production technologies onsite including laser welding, plasma activation, robotics, gluing, automated optical and electrical inline quality inspection along with end-of-line testing. The training is also focused on supporting a highly automated process, which is an important part of battery module production, as well as comprehensive quality assurance, product methodology and technology, rework, and analysis.

BMW High Voltage Battery production in Thailand

World-class standards and quality
Equipped with a strong grasp of battery production skills, the staff will work on battery cells provided by a supplier in the Asian region along with other imported parts – such as aluminium housing, electronics, and cables – to roll out high-voltage battery packs that meet BMW Group’s world-class standard and are in full compliance with Thailand’s local content requirement regulation.

Completed battery packs will then be transported to Plant Rayong for the production of the entire range of BMW 5-Series Plug-in Hybrid Vehicles, which has been in operation since July 2019. Since 2017, BMW Group Manufacturing Thailand has assembled four BMW plug-in hybrids at Amata City Industrial Estate, Rayong province.

BMW Thailand

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