Other Market Studies – October 2019

Faraday Institution’s Andrew Deadman and Stephen Gifford outline the market studies that have been completed recently and those that are currently ongoing.

 

A report detailing the potential of batteries, and other energy storage technologies, to provide access to energy for millions of people around the world has recently been completed. The report, “Rapid market assessment of energy storage in weak and off-grid contexts,” assesses the market opportunities for energy storage technologies in developing countries, as well as the suitability of the different energy storage technologies currently available in providing cheap, clean and reliable energy. The report highlights the large potential market that batteries may have for replacing diesel and petrol generators, bringing with them improvements in noise and air quality as well as the associated reduction in carbon emissions. The report also makes recommendations for future research, which focuses on materials research to reduce the cost and improve the efficiency of new battery technologies.

A report assessing the competitiveness of battery cell manufacturing in the UK and identifying potential areas for improvement has also been completed. The Faraday Institution collaborated with the UK Battery Industrialisation Centre, Advanced Propulsion Centre and Innovate UK to commission the study from Element Energy and Avicenne. The study modelled the estimated costs of battery cells made in the UK versus the cost of cells imported to the UK from China and Germany. A bottom-up approach has been developed that fully accounts for all cell cost components, from the various materials that constitute a cell to overhead costs such as labour and R&D. The model was based on Avicenne Energy’s lithium-ion cost database and an extensive literature review into the various factors that can influence total cell cost depending on the location of the manufacturing plant, and energy, labour and transport costs. The results from the study, which show that the UK is likely to be broadly competitive with Germany, will be used by the Faraday Institution in its discussions with Government on attracting a gigafactory into the UK.

A report has been written by Qinetiq on the most promising technology developments in the field of high-energy batteries over the period to 2030. The main aim of the study was to provide information to help organisations make critical decisions about future new battery systems for their business, products and services. The report provides an overview of the main applications for battery systems, the drivers for adoption for those applications and the most relevant battery technologies for each. Technologies assessed include current state-of-the-art battery technology such as lithium-ion and lithium-sulfur and emerging high energy lithium-ion and related technologies (e.g. nickel-rich cathodes, vanadium-based cathodes, high-voltage cathodes, silicon anodes and tin-based anodes). The study also considers lithium-metal cells and solid-state batteries. It considers the most promising technology developments for various sectors, including portable consumer electronics, electric vehicles, civil aviation, unmanned systems and large-scale energy storage.

Readers may also be interested in a recent report published by the Global Battery Alliance, “A Vision for a Sustainable Battery Value Chain in 2030,” to which the Faraday Institution contributed.



Posted on October 9, 2019 in Uncategorized

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About the Author

Stephen Gifford joined the Faraday Institution as Head of Economics and Market Insights March 2019. He has over 25 years of economics experience, including as the Chief Economist at Grant Thornton, the Director of Economics at the CBI and as a senior economist at KPMG, Oxford Economics and the Prime Minister’s Strategy Unit. Prior to joining the Faraday Institution, Stephen was Head of Economic Regulation at the Civil Aviation Authority. He is currently a Commissioner in the National Infrastructure Commission for Wales. Stephen has a first-class degree in Economics from the University of Liverpool and a MSc in Econometrics and Mathematical Economics from the London School of Economics.

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