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Last Updated: 24/4/2023 EVBox

An EV battery is typically composed of thousands of rechargeable lithium-ion cells connected together to form the battery pack. Lithium-ion cells are the most popular due to their cost-effectiveness, offering the most optimal compromise between energy storage capacity and price.

The Rise of Electric Mobility and EV Battery Production

With the continuous rise of electric mobility, the demand for electric vehicles (EVs) and, consequently, EV batteries, is booming. This raises the question of how battery manufacturers can meet this growing demand and what materials are needed to produce an EV battery.

In this article, we explore in depth the materials used for EV batteries and the manufacturing process. We will also shed light on who the main EV battery manufacturers are and what the growing gap between supply and demand means for the future of EV batteries.

An engineer in a clean white shirt in a futuristic lab designing an electric car using hologram technology.

What Are EV Batteries Made Of?

Batteries come in many different shapes and sizes. From the shape of the cells to their chemistry, electric vehicle manufacturers have several battery options. Before diving into the materials that make up batteries, it’s important to first understand the different types of physical cell structures.

A close-up image of cylindrical cells held by a person wearing protective gloves.

The Different Types of Battery Cells

There are three basic types of battery cells used in electric vehicles: cylindrical cells, prismatic cells, and pouch cells.

  1. Cylindrical Cells Perhaps the most commonly used format, cylindrical cells are, as the name suggests, self-contained in a cylindrical casing that provides resistance to mechanical shocks—very similar to typical household AA or AAA alkaline batteries. Due to the long-standing use of this format, cylindrical cells are the most cost-effective and easiest to manufacture. That said, cylindrical cells can be somewhat limited in their power output, which is why electric vehicles with smaller batteries often use prismatic or pouch cells.
  2. Prismatic Cells Unlike cylindrical cells, which are relatively small (about the size of an AA battery), prismatic cells can be 20 to 100 times larger. Because they use less material for the casing, prismatic cells can store more energy and provide higher power while managing heat better than cylindrical cells. Although less popular than cylindrical cells, their use has been steadily growing, and they could capture a significant market share in the coming years.
  3. Pouch Cells Pouch cells are enclosed in a soft plastic casing, making them highly efficient in terms of space utilization. However, their fragile casing means they typically require additional protection to prevent mechanical damage to the cells.

What Are the Most Popular Materials Used for EV Batteries?

An assembly line adding the protectivex to an EV battery pack.

Beyond their format, EV battery cells also vary based on their chemistry, i.e., the materials chosen to store electricity.

While lithium-ion (Li-ion) tends to be the most widely used due to its relatively low cost and high energy storage capacity, other popular battery chemistries exist.

Nickel Manganese Cobalt (NMC) and Nickel Metal Hydride (Ni-MH) were popular in early electric vehicles due to their affordability, long lifespan, and relatively high capacity. Older hybrids, such as the Toyota Prius and RAV4, commonly used NMC or Ni-MH batteries.

One of the oldest types of batteries used in cars is lead-acid cells. Decades before they were used in electric vehicles, lead-acid batteries were—and still are—used in gasoline vehicles to power their ignition systems.

Unlike most other types of EV batteries, lead-acid cells can be easily repaired and replaced by auto mechanics and generally require very little maintenance. However, they cannot store as much energy as other cell types, making them impractical for powering larger electric vehicles.

What Are Lithium-Ion Batteries Made Of?

It’s no surprise that lithium-ion batteries contain lithium. But have you ever wondered what other materials are needed to make a Li-ion battery?

Creating a lithium-ion battery requires multiple layers. Like other batteries, Li-ion batteries have a positively charged cathode, a negatively charged anode, and an electrolyte that separates them. The cathode is typically made from a mixture of lithium, nickel, cobalt, and manganese, while the anode is most often made from graphite.

Finally, the individual cells are enclosed in an aluminum or steel casing that holds the battery together and protects it from mechanical damage.

Components of a Lithium-Ion Battery

What Components Are Needed for a Battery?

Beyond the raw materials that make up its cells, an EV battery requires many more hardware and software components to make it functional. Let’s examine the main features of an EV battery.

A battery manufacturer tinkering on a bare battery pack with specialized tools while wearing protective gloves.

Battery Module Array The battery module array is the technical term referring to the battery’s energy storage components. This includes the cells mentioned earlier, which are grouped into modules, each containing a specific number of cells wired together. These modules are then connected to form the final complete battery pack (what most people generally refer to when talking about an EV battery).

Battery Management System (BMS) The BMS of an electric vehicle is perhaps the most fundamental part of its battery. It controls every aspect of the battery and ensures its optimal operation. It monitors and regulates the charge level of each cell, decides which cells to charge or discharge, and tracks the battery’s temperature.

If the battery operates abnormally, the BMS can automatically adjust power consumption to protect the battery and, if necessary, alert the driver.

Battery Electrical System The battery’s electrical system refers to all the cables, connections, fuses, and other electrical components necessary for the operation of an EV battery. It is designed to withstand high voltages and is typically integrated with the battery management system to efficiently manage each cell.

Battery Cooling System Just like the battery in your phone or laptop, EV batteries also heat up with use. Due to their size, electric car batteries can produce a lot of heat that needs to be dissipated—this is the responsibility of the battery cooling system. Typically, this is a sealed coolant that can remove heat from the battery cells and dissipate it into the air.

Battery Protection Case Finally, the battery needs a physical structure to hold all its components together. This is the role of the battery protection case. While its function may seem simple, its design must ensure it is sealed, resistant to shocks, and capable of withstanding various vibrations, making its engineering far more complex than it appears.

Who Manufactures Them?

Given that EV battery production is a resource- and capital-intensive activity, the majority of global battery production is concentrated in the hands of a few companies.

The world’s leading EV battery manufacturer is CATL (Contemporary Amperex Technology Co. Limited), a Chinese company that holds about 34% of the total EV battery market share. This is not surprising, as China accounts for 70% of cathode production capacity and 85% of anode production, and more than half of the raw minerals used to make an EV battery also come from China.

The second-largest manufacturer is LG Energy Solution, with a 14% market share. Recently, they announced a partnership with Honda to invest $4.4 billion in building an EV battery manufacturing plant in the United States, which is expected to start production around 2025.

The third-largest manufacturer is BYD, a Chinese company with a 12% market share. Unlike many of its competitors, BYD is also an electric vehicle manufacturer, meaning it can meet the majority of its own battery and EV system needs.

The United States, Japan, and South Korea account for the rest of the EV battery market, representing 7%, 11%, and 14% of global EV battery production, respectively.

It is clear that China is the dominant player in EV battery manufacturing. While the United States and the EU are attempting to boost production through public sector initiatives, China will likely remain the primary supplier of EV batteries until at least 2030.

Supply and Demand Gap

Driven by the explosive growth of electric mobility, EV manufacturers are facing challenges in sourcing the raw materials needed to produce an electric vehicle, particularly batteries. Since early 2020, the automotive sector has been dealing with ongoing computer chip shortages, which continue to impact the prices and cost of manufacturing an EV. In addition to existing lithium shortages, another mineral shortage is looming—that of graphite.

A battery engineer testing parts in a lab while wearing protective glasses.

Graphite is the primary component of an EV battery’s anode, and shortages could further increase the production cost of EV batteries.

The Future of EV Batteries

With news of shortages and price increases left and right, you might naturally wonder what the future holds for EV batteries.

Beyond extracting more raw materials, one promising avenue is EV battery recycling, which recovers many minerals from old batteries and reuses them for new battery production. Not only can this alleviate many of the current shortages, but it also makes EV battery production much more sustainable.

In addition to recycling, new research promises to improve the performance of EV batteries, making them more efficient and, consequently, using fewer raw materials.

A person holding a battery pack while wearing protective gloves.

EV battery manufacturing is a complex process that uses increasingly scarce materials and leverages expertise that few manufacturers possess. That said, advances in battery recycling and research into more efficient batteries, combined with political efforts to boost global production, should ensure that EV batteries remain affordable and available for years to come.

If you’d like to learn more about EV batteries, check out our dedicated articles on their cost or how they can be recycled.