Taiwan is Backed by Multiple Advantages to Develop EV/LEV Li-ion Cells

It's generally agreed and a foregone conclusion that developing fully-practical EVs (electric vehicles) is one of the essential solutions to helping mitigate global warming, a phenomenon no longer considered scientific theory as the Maldives are likely to be submerged under the ocean by 2100, with the ice caps shrinking and thinning faster than ever.

But how is the state of EV development shaping up in Taiwan? So far the island has not launched a locally-made EV as the Chevy Volt, Mitsubishi i-EV, or the Tesla roadster, except a few electric bikes and mopeds. The fact is that Taiwan is nowhere near building a production EV, when the battery, the heart of an EV, alone remains a hurdle not easily cleared by the local EV technology developers.

Despite seeing the Taiwan authorities offering various incentives to foster the development of EVs or light electric vehicles (LEV) and support sectors, including commodity-tax reduction, subsidies to EV/LEV makers, cash rebates for consumers etc., most people engaged in the industry in Taiwan seem to agree that made-in-Taiwan lithium-ion (Li-ion) batteries are inferior to those from Japan and South Korea, due to lacking an indigenous, comprehensive supply chain, hence forcing local makers to be at the mercy of foreign suppliers of technology and parts.

Torch Bearer

B.M. Lin, manager of the energy storage materials & technology research division under the Material and Chemical Research Laboratories (MCL) of the Industrial Technology Research Institute (ITRI), may be the torch bearer in the local Li-ion battery development. Lin's division maps out test methods and standards for Li-ion batteries subsidized by the official LEV plan, and the man's Li-ion battery expertise has been continually sharpened for over 13 years since the ITRI launched its first prototype e-scooter ZE-1.

“Regardless of plug-in hybrid electric vehicle (PHEV), hybrid electric vehicle (HEV), or battery electric vehicle (BEV), Li-ion batteries must meet the significantly higher specifications as power density or high discharge and energy density or high capacity,” Lin points out. “But Taiwan's Li-ion battery industry lags that in Japan and South Korea, the Achilles' heel of the local EV/LEV industry that may be seeing an opportunity for redress.”

One encouraging development is the ITRI-developed STOBA, a high-safety Li-battery material technology recently awarded the R&D 100 Awards by the globally-renowned R&D Magazine, among other achievements by many international enterprises and research institutes.

The STOBA (self-terminated oligomers with hyper-branched architecture) is a nano-grade high-molecular material integrated into lithium batteries to automatically form a protective film. When a lithium battery is overly heated, impacted or pierced, the STOBA immediately stops the electro-chemical reactions hence triggered to prevent short-circuiting that generates excessive heat, consequent fire hazards to achieve significant safety upgrade. So STOBA-integrated lithium batteries are much safer for 3C (computer, communication, and consumer electronics) or electrical vehicles (EV).”

The STOBA technology has been tested for shorting and piercing in experiments that surpass international safety standards, Lin says, and currently STOBA is the only technology worldwide using innovative, nano-grade material that has fundamentally overcome the lithium battery safety issue.

The Best in Safety

“The STOBA is one of the best solutions for upgrading Li-ion battery safety, especially in EV's high-power applications. Such technological breakthrough may be an once-in-a-lifetime chance for Taiwan-made Li-ion battery technology to possibly overtake Japan and South Korea,” says Lin.

Every major international player in the Li-ion battery business is aggressively trying to overcome the safety issue. Some choose to increase thickness of separator films, some improve formula of electrolyte, Lin says, but internal short circuits remain the pivotal issue, because extended usage tends to result in chemical reactions or other changes that pierce separator films to short Li-cells.

“STOBA is not only an advanced technology,” Lin stresses, "but also a versatile, evolving concept that can help improve different Li-ion batteries through using various polymeric formulae. For example, such technology can make LiFePO4, generally deemed the safest, even safer when wired for high voltage, or effectively eliminate many potential risks of lithium-manganese (Li-Mn) cells at more affordable cost. The result could be that Taiwan-made, STOBA-integrated Li-ion batteries would hold the potential to win bigger global market shares.”

The potential cost advantage of STOBA may be its greatest asset, for safety may be the top priority for many consumers but cost remains a decisive factor for even more; after all the number of budget-conscious EV buyers still far exceed those at the top of the consumer pyramid, says Lin. “The global EV market is rapidly expanding, which will drive for a long time the demand for better, more affordable, and safer Li-ion batteries. Proof is that about 600,000 or more electric bikes are expected to be sold in Europe this year, compared to only about 100,000 bikes in each of the past few years. About 80% of the e-bikes sold in Europe adopt non-LiFePO4 Li-ion batteries, which are the safest.”

Size Matters

Battery size and type must be carefully evaluated initially, for Li-ion battery makers in Taiwan are obliged to invest enormously to set up facilities. Once the factory is built and manufacturing specifications are programmed, it would be an operational nightmare to change capacity or upgrade equipment.”

Both bigger and smaller Li-ion cells have pros and cons, Lin explains, while the politics of business further complicates the scenario. Bigger cells are disadvantaged by being less flexible in shape and applications, as well as qualitatively stable. The production volume of bigger Li-ion batteries is low due to high prices, while smaller ones can be produced in larger volumes, with better cells able to be screened out. There is a limited supply of bigger cells: only a handful of makers, such as GS, Sanyo, and Panasonic, make bigger Li-ion cells, none of which are supplied to outsiders. As such, Lin says, smaller EV/LEV makers are unlikely to be supplied bigger Li-ion batteries or even conventional big batteries on the market. The game, simply, is for Big Leaguers: all major producers are exclusive suppliers of or contracted by international automakers.

Despite the advantages of smaller Li-ion cells, a nagging issue is the numerous welds associated with wiring in parallel or series that compromise reliability. “Most Taiwanese Li-ion battery makers focus on producing 18650-type cylindrical cells due to the reality of the market: most dedicated-specification applications as for 3C (computer, communication, and consumer electronics) products are taken by in-house battery suppliers such as Samsung, LG, Sony, Sanyo, Panasonic etc.”

Lin sums up the market: “Makers of Li-ion batteries have mostly opted to make bigger sized cells, hence making such item the trend. One thing for sure is that the 18650 cylindrical cell is a transitional or tentative product.”

Pros and Cons

Two ways exist to pack Li-ion batteries: soft with aluminum foil or hard with metallic housing of prismatic and cylindrical form. GS dominates the soft packing segment and NEC the hard packing. So far, Lin says, there is no consensus as to what is the best.

Soft-packed cells are more temperature-vulnerable and may leak after extended use. In addition, such cells, when used in printed circuit boards (PCBs), have weak links at connecting points. However, soft-packed cells are lighter and cheaper to make.

Metal-can-packed cells are generally seen as more durable for their higher rigidity and strength, but are more costly. Lin strongly urges Li-ion battery makers to carefully consider such issues when venturing into the business or plan to expand capacity.

Hopeful Suggestions

“Taiwan would do well to make Li-ion batteries for EVs and LEVs, especially after many rivals in mainland China are tapping the lower-threshold 3C application markets,” Lin says firmly. “If Taiwan's battery makers remain unchanged, then they can only at best equal Japanese and Korean counterparts, but still face fierce underselling by Chinese rivals.”

“First, Taiwan should take advantage of its well-known manufacturing and cost-control capabilities to take the lead in popularizing Li-ion batteries by offering more of such products at competitive prices,” says Lin.

Tapping Taiwan's innovations is another way to better compete, Lin says. Using the ITRI-developed STOBA is an effective means for Taiwanese battery makers to try to lead in building and producing larger batteries for currently even LiFePO4 batteries are not fully safe. Being able to adopt STOBA will be increasingly important as battery size rise in EV/LEV applications, with such safer technology to help Taiwan makers turn out more competitive Li-ion batteries for larger-size applications,” says Lin.

The third advantage working for Taiwan in the Li-ion battery industry, according to Lin, is the island's world-class Li-ion battery packing techniques long used on 3C applications. “In the Li-ion battery line, cell-packing is a technique of relatively high importance similar to system integration. Now the local battery makers can try to diversify into a new field,” says Lin.

Another, almost inherent, plus going for Taiwan is the existing testing ground. The island is home to hundreds of thousands of PTWs, so would also be the ideal place for testing electric bicycles, scooters and LEVs. So Taiwanese battery makers have excellent opportunities to utilize such setting to develop economy-of-scale and improve products to achieve world-class competitiveness. Besides, the Taiwan government has been promoting LEV development on the island, and is subsidizing for four years, starting in November 2009, the buying of 160,000 e-bikes and e-scooters.

Uncertainties

“The global EV/LEV and Li-ion batteries are two rapidly emerging sector with many uncertainties, such as energy development, government policies, technology advancement etc. Players in the two lines should watch closely the ever-changing market. For example, the entry of LiFePO4 battery into the Li-ion family has created many uncertainties for the business. It just shows that newer, better products continue to be born,” says Lin.

Optimistic about the development of EVs worldwide, the battery expert says that, regardless of how advanced EVs get or how cheap Li-ion batteries become, the linchpin is the ease of recharging. So until a truly easy-to-use recharging infrastructure will have been built, he says, hybrid EVs as the Toyota Prius will continue to be the most popular transitional vehicle, whose popularity might last much longer than anticipated.