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July 2005

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EUROBAT Eurobat is the association of European Storage Battery Manufacturers, has 37 regular and associate member companies. It is the unified voice of the industry in policy discussions involving the industry and the European Institutions and national governments and: • Works to enhance relations between the industry and the European institutions, especially the European

Parliament and the European Commission • Develops collective solutions towards issues of common concern to the industry, the regulators and the

consumers • Co-ordinates the exchange of information on European battery issues to the European Institutions, the

media and the public • Serves as an advisor on all information related to the starter and industrial battery domain. Eurobat Regular Members AKTEX, BANNER, DELPHI, ENERSYS, EXIDE, FAAM, FIAMM, GERMANOS, HOPPECKE, ISTA, JCI/VARTA, LECLANCHE, MOLL, MUTLU, OERLIKON, ROMBAT, SAFT, VULCAN, YUASA Eurobat Associate Members ACCUMA, ACCUMALUX, AMER-SIL, BERZELIUS METALL, DARAMIC, ENTEK INTERNATIONAL, FROETEK KUNSTSTOFFTECHNIK, H.J. ENTHOVEN & SONS, HOLLINGSWORTH & VOSE, JL GOSLAR, MECONDOR, METALEUROP, PLASTAM, T.B.S. ENGINEERING, WIRTZ MANUFACTURING Eurobat Committees Six committees provide a platform for the majority of Eurobat's activities and are formed according to the needs and the objectives of the Association: Automotive Batteries Committee: The Committee for Automotive Batteries monitors the European Starting, Lighting and Ignition (SLI) battery market and expands marketing initiatives to develop new demand for SLI batteries. Committee for Industrial Batteries: The Committee for Industrial Batteries is responsible for identifying accurate statistical information on the European industrial battery industry market supported by relevant industrial trends. Initiatives for industrial batteries are also developed by the committee to benefit users and our industry. Technical Committee: The Technical Committee assists and guides the Eurobat committees to prepare technical standards and non-competitive technical issues that help raise the industry profile worldwide. The Committee also supervises technical matters common to Eurobat members such as international and European standardization. Committee for Environmental matters: The Committee for Environmental Matters ensures that our industry operates to the highest standards of environmental legislation, safeguarding the interest of those who work in the industry as well as its consumers. Research & Technical Development Committee: The Research and Technical Development Committee (RTD) monitors and contributes to several RTD funding programs of the European Commission in order to locate opportunities for RTD on batteries. Electric Energy Storage is mentioned as a ‘bottleneck’ in different EU programs and sector Strategic Research agendas. Storage is a cross-cutting topic, linked to several applications. The RTD areas of interests are Automotive applications, Industrial Applications, Renewable Energy Systems, Fuel cells and Hydrogen Policy and Complementary Energy Storage Systems. The RTD Committee is the author of this Battery Industry RTD Position Paper. Contact point: EUROBAT Secretariat Avenue Marcel Thiry 204 B-1200 Brussels Phone: +32 2 774 96 53 Fax: +32 2 774 96 90 E-mail: eurobat@kelleneurope.com Website: www.eurobat.org

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EXECUTIVE SUMMARY This report “BATTERY SYSTEMS FOR ELECTRIC ENERGY STORAGE ISSUES” represents the position of the European Battery Industry related to the Research & Technological Development (RTD) needs in the field of battery systems over the next 10-15 years. Since the presentation of a first rechargeable battery by Gaston Planté on March 26th, 1860, the rechargeable batteries used to be considered as a key component of the way of life: they were associated with the widespread use of electricity as energy sources. A lot of improvement has been made to cope with the different requirements related to different situations: • Cranking power for car, aircraft, boat… • Electrical traction for heavy duty equipment, transport and logistic systems • Back-up power for emergency systems The strong impetus of the European Union for Sustainable Development induces challenges on major issues for the future, especially related to the reduction of greenhouse gas emissions, increased renewable energy storage, importance of security of energy supply and growing demand for hybrid vehicles. Within that perspective, electricity is becoming a key energy carrier that requires mandatory storage systems to match the requirement for easy availability at the point of use: • Hybrid vehicles based on combustion engines or vehicles with auxiliary or full fuel-cell systems • New electricity networks based on distributed energy resources like renewable resources • More Electrical Aircraft based on a widespread use of electric devices instead of mechanical or

pneumatics • .... In order to meet these challenges, the European Industry gathered under the EUROBAT umbrella to: • Express a battery vision for the future based on two main concepts:

“Pentagon of Virtues” concept related to the five High-Level Targets that must be taken into account to build the battery vision

“Electrical Energy Storage Systems” (E2S2) concept related to the realisation of the battery vision

• Outline a Strategic Research Agenda (SRA) for the future based on three main electrochemical systems: Lead-Acid systems Ni/MeH (Nickel-Metal Hydride) systems Li-Ion (Lithium- Ion) systems

The considerable RTD effort will strengthen the European Battery value chain composed of the four main categories: • Battery Manufacturing Industry • Battery Suppliers Industry • Battery Engineering/Service Industry • Battery Research (public & private) The mobilisation of this European Battery Network is mandatory to meet the European Sustainable Development challenges and to face the strong competition coming mainly from Far East countries. All EU initiatives for Funding and regulatory/legislative proposals need to take into account that a strong manufacturing base in Europe is a requirement for strong RTD efforts, in support of competitiveness of industry in Europe.

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CONTENTS 1. STATE OF THE ART

Presentation of battery principles and main technologies: electrochemical systems based on periodic table of elements.

2. BATTERY APPLICATIONS

Presentation of battery applications: current & future applications. 3. EUROPEAN BATTERY NETWORKS

Presentation of the four main components of the European Battery Network: European Battery Industry. European Battery Suppliers. European Battery Services. European Battery Research.

4. BATTERY CONTRIBUTION TO EUROPEAN SUSTAINABLE DEVELOPMENT STRATEGY

Main contribution of the Battery Industry to European Sustainable Energy, Transport, Social and Environmental Policies.

5. SUPPORT OF BATTERY RTD WITHIN EUROPEAN FRAMEWORK PROGRAMMES

European Support Decreasing for Battery Research & Technological Development. 6. BATTERY CHALLENGES FOR THE FUTURE

Battery challenge related to a widespread use of electricity in: Energy area. Transport Area. Customer Service Area.

7. LINKS WITH TECHNOLOGY PLATFORMS (TPs)

Battery contribution to the main TPs objectives and key contribution of some TPs to Battery challenges. 8. BATTERY VISION FOR THE FUTURE: 2020

Presentation of the battery concepts: Pentagon of Virtues. Electrical Energy Storage System (E2S2).

9. STRATEGIC RESEARCH AGENDA (SRA)

SRA composed of three main parts: Lead-acid SRA. Ni/MeH SRA. Li-Ion SRA.

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1 STATE OF THE ART

1.1 Battery basics A battery is an energy storing system based on electrochemical charge/discharge reactions. During discharge the chemical energy is converted into electrical energy and during charge the energy is reconverted into chemical energy. In a primary battery system only the discharge reaction can be used. A secondary or rechargeable battery system is characterized by a charge/discharge reaction that is reversible.

The higher the reversibility the more discharge/charge cycles can be performed. The electrical energy stored in a battery is directly related to the chemical energy being stored. The cathode incorporates an oxidizing material, the anode a reducing component. The laws of nature have fixed limits to specific energy of electrochemical systems from the periodic table of elements:

The maximum theoretical specific energy is attained for Lithium and Fluorine at 6,085 Wh/kg. However, most chemical reactions cannot be used in a battery system because they are not reversible in an electrochemical cell. Batteries have to be distinguished from fuel cells and capacitors. A capacitor is based on a reversible separation of charge with a significant lower energy, compared to a chemical reaction associated with a battery technology. Fuel cells convert chemical energy into electrical energy without the ability to be recharged by electrical power. Whenever energy has to be reversibly discharged and recharged at high energy density, and with high efficiency, a battery is the most suitable energy storage system.

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1.2 Main Battery technologies Although a broad range of different electrochemical systems and battery technologies exists today three systems dominate the current market:

Lead-Acid battery technology Alkaline battery technology Lithium Ion battery technology

The selection of one of these technologies depends on the requirements regarding performance, life, safety and cost. As described in Section 2, the selection of the battery system depends on the application.

1.2.1 Lead-Acid battery technology The lead-acid technology is the most widely used electrochemical system. The lead-acid battery is based on:

Lead dioxide as the active material of the positive electrode, Metallic lead, in a high-surface-area porous structure, as the negative active material, Sulphuric acid solution.

In fact, lead-acid technology is composed of several sub-technologies according to the battery design and the manufacturing process:

Flooded lead-acid batteries, Valve-Regulated Lead-Acid (VRLA) batteries with electrolyte immobilized by a gel, VRLA batteries with the electrolyte immobilized in an absorptive glass mat (AGM)

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1.2.2 Alkaline batteries Rechargeable alkaline batteries employ a nickel hydroxide based cathode, with either a metallic anode (Nickel-Cadmium (Ni/Cd), Nickel-Iron (Ni/Fe), Nickel-Zinc (Ni/Zn) or a hydrogen storing anode (Nickel/H2, Nickel-Metal Hydride (Ni/MeH)). Due to technical limitations on maintenance and long term cycling performance, Ni/Fe and Ni/Zn batteries cannot be used for automotive or stationary applications. Ni/MeH is technically superior to Ni/Cd in a number of technical aspects and it can be used in many applications.

Nickel/Hydrogen (Ni/H) and Ni/MeH batteries, in principle, represent the same battery system, namely nickel hydroxide (NiOOH) as positive and hydrogen (H2) as negative electrode materials. In Ni/MeH batteries a hydrogen storage alloy is used. Both systems have excellent cycle life.

1.2.3 Lithium-Ion batteries Lithium-Ion (Li-Ion) is the dominating battery system for current portable applications. It was introduced to the market by SONY in 1991. Due to the high capacity of active materials and a single cell voltage of 3.6V, Li-Ion provides the highest energy density of all rechargeable systems operating at room temperature. Li-Ion provides approximately twice the specific energy of Ni/MeH and three times the specific energy of lead-acid batteries. Li-Ion batteries are also available as lithium polymer batteries using a solid or gel-type electrolyte. The Li-Ion battery employs a Lithium metal oxide cathode and a carbon anode with an organic electrolyte. Over the last years tremendous improvements on battery parameters have been achieved. Both the high level of energy and power makes the Li-Ion system very suitable for various applications, ranging from high energy to high power. The high single cell voltage not only results in high performance, but also allows the use of a fewer cells, compared to other battery systems.

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1.3 Other battery technologies

1.3.1 High Temperature systems There are three different high temperature systems which have gained some attention as electrochemical energy storage systems; Sodium / Sulphur (Na/S), Sodium / Nickel chloride (Na / NiCl2) and Lithium / Iron sulphide system (Li/FeS). The common feature of all these systems is an operation temperature of more than 300°C, which necessitates permanent heating to remain functional. The High temperature systems need high integrity ceramics for separation, a corrosion resistant case and sealing materials, and an excellent thermal insulation for limiting the heat losses. Originally provided for energy storage in electric vehicles in large volumes, they are only playing a role in certain niche markets (UPS, electric and hybrid buses). Permanent heat losses may lead to a poor energy balance (charged energy against dischargeable energy), particularly for those applications, which are not in permanent operation.

1.3.2 Metal Air systems Metal Air systems have been playing an important role for primary batteries. The anode material consists of a highly porous metal powder and the cathode is a carbon based material capable of electrochemically converting ambient air into oxygen. The Zinc / Air system (e.g. batteries for hearing aids) and the Aluminium / Air system (emergency systems) have achieved a commercial importance. Metal Air systems may even be designed as rechargeable. However, the recharge must be done by mechanically removing and replacing the spent anode. The anode may be recovered by an external chemical process before re-use. It is mainly the impracticality of the metal electrode exchange process and the associated high costs, which have kept the metal air systems from a breakthrough in the rechargeable battery market.

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1.4 Overview of different battery technologies

Technology Specific Energy (Wh/kg)

Specific Power (W/kg) (short pulse)

Cycle number (100% DOD)

OptimumOperating Temp. range (°C)

Energy Efficiency

Self-disch. Maintenance

Pb-acid (VRLA) 40 250 800 0-40 80-85% Low No

NiCd 60 200 2000 0-40 80-85% Low Yes

Ni/MeH HP 45 1300 2000 0-40 80-85% High No

Ni/MeH HE 70 700 2000 0-40 80-85% High No

Li-Ion HP 90 2000 2000 0-40 90% Low No

Li-Ion HE 125 700 2000 0-40 95% Low No

Ni/Zn 75 200 n.a. 0-40 70% n.a. No

Na/NiCl2 125 200 1000 n.a. 90% High No

Zn-air 200 70 n.a. 20-40 n.a. n.a. Yes

Remark: HE = High Energy HP = High Power

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2 BATTERY APPLICATIONS Batteries are the principal method of storing electrical energy. Different energy storage technologies are shown below:

Batteries are a key technology for the efficient and sustainable use of electrical energy in current and future applications.

2.1 Current applications Current applications can be divided into three main categories:

Automotive applications. Industrial applications. Portable applications.

2.1.1 Automotive applications

The automotive applications are mainly related to “Start, Lighting and Ignition” (SLI) batteries. The battery functions are to provide:

High power for a very short time to start the engine. A low power supply for electrical devices when the engine is stopped.

Batteries are also included in automotive power trains for:

Electric Vehicles using electricity instead of gas or diesel for motive power. Hybrid Vehicles based on a combination of electric and internal combustion engines.

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2.1.2 Industrial Applications Industrial applications are mainly in the two following categories:

Stationary applications: batteries are used to provide electrical power to systems during instances of power outages for:

• Telecommunication networks • Emergency lighting applications • Data communication systems • Security systems

Transport applications: batteries are used to provide electrical energy for specific vehicles:

• Electrical traction for Heavy-Duty equipment (utility vehicles, tow tractors, trucks, passenger

carriers, material handling equipment, floor scrubbers, airport ground equipments and other light vehicles such as golf carts, wheelchairs).

• Cranking power for aircraft, railway locomotives and boats. Railroad equipment: railroad crossing lights, gates and signals.

• Security energy for railway equipment, aircraft equipment.

2.2 Future applications Batteries will be a key technology to enable many new systems to be brought into effective use including:

Energy systems:

• Fuel Cell system operation is optimized with a battery. • Solar Systems and Wind Energy Systems have an output that is too variable to be used without

batteries. • New ” Distributed Energy Resources “ (DER) networks will need energy storage to balance

energy supply and energy use.

Transport Systems:

• Clean vehicles will be based on a more intensive use of electricity. o Hybrid or electrical power trains using batteries. o Replacement of mechanical devices by electrical devices, leading to an increased use

of electricity and to more efficient batteries.

• Aeronautics intends to develop “More Electrical Aircraft”, which will require innovative batteries. • Electrical ship propulsion concepts will be introduced in the next few years.

Information and Communications:

New communication networks (fixed, mobile, wireless, broad-casting networks) will require

innovative battery solutions to guarantee service availability in all conditions.

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Health:

• New health therapies will be based on the use of electrical devices that will require batteries for operational security.

Space:

• As weight and volume are expected to continue to be a key issue for satellite systems, new

smaller and lighter batteries will be required to support the development of this market.

Security:

• Security of infrastructure provided by utilities is expected to be one of the main challenges over the coming years: increased use of batteries will make an important contribution to ensure the security of the electricity network without excess generating and distribution capacity.

3 EUROPEAN BATTERY NETWORK The European Battery Network is composed of the following parts:

European Battery Industry. European Battery Suppliers. European Battery Service Structure. European Battery Research.

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European Battery Industry The worldwide rechargeable battery market had a value of 19 B€ in 2004. This market is composed of 3 different segments and is based on 4 main battery technologies, as shown below:

The European Battery Industry is based primarily on the Automotive & Industrial markets, which are dominated by Lead-Acid technology, with the use of Ni/Cd technology for specific applications as shown below:

The European Battery Industry employs 40,000 people located in most European countries, and is comprised of several companies involved in a number of battery technologies (see table below):

TECHNOLOGIES AUTOMOTIVE INDUSTRIAL

Lead-Acid Banner, Delphi, Exide, Faam, Fiamm & JCI/Varta

Enersys, Exide, Faam, Fiamm, Hoppecke & Oerlikon

Ni/Cd Saft Hoppecke & Saft Ni/MeH JCI/Varta & Saft Hoppecke & Saft Li-Ion JCI/Varta & Saft Saft

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3.1 European Battery Suppliers The Battery Industry depends on European suppliers carrying out research and development to provide innovative components but, unfortunately, the trend is that the number of European suppliers and their efforts are decreasing. For lead-acid batteries, the production of lead and alloys both from primary and secondary resources is important. The principal use of lead is in batteries and the principal source of secondary lead is end-of-life batteries. There is a highly effective recycling network and lead is the most efficiently recycled commodity metal. Other main suppliers are plastic moulders for battery containers, suppliers of chemicals and special manufacturers of micro-porous plastics and papers for battery separators. For Nickel-based batteries, the production of special forms of nickel and nickel compounds is important not only for the European industry, but for the industry worldwide. Lithium batteries also use micro-porous materials for battery separators. There are also European suppliers for carbon compounds, metal oxides and electrolytes. For non-lead/acid rechargeable batteries a substantial recycling industry is in place to ensure that materials of value are recovered for reuse and that materials are not dispersed into the environment at end-of-life. It is important for the suppliers to maintain a healthy European industry, which in turn gives them a base from which to expand their business globally.

3.2 European Battery Services In addition to a well-functioning supply structure and the availability of appropriate manufacturing technology, the European battery industry is also dependent on a highly effective system for distribution and service. This not only includes commercial supply and distribution structures, but also the needs of high-level technical support and service. All applications of rechargeable battery systems need to be supported by technical advice and by expert engineers for each type of duty. This type of service is essential for the optimum operation of battery systems and for customer satisfaction and safety. Systems in operation without suitable control devices are not only uneconomical, due to early failure and low efficiency, but may be a safety hazard. This is especially true for batteries used in safety sensitive fields (UPS systems, automotive applications). For that reason, the European Battery Industry needs to have a sufficient number of well-trained experts available. Basic technical knowledge about battery systems is necessary to find the most technically suitable solution for each particular application. Moreover, the experts and the network they provide will give technical feedback to research and development, thus triggering the continuation of technical progress in this important technical area and business.

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3.3 European Battery Research European battery research is mainly performed in battery company R&D centres and in publicly funded laboratories. The industrial research centres are located across Europe, as shown below:

Publicly funded research laboratories are mainly involved in lithium technology and there are participants in many European countries, as shown below:

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4 BATTERY CONTRIBUTION TO EUROPEAN SUSTAINABLE DEVELOPMENT STRATEGY

Sustainable Development was defined by the Bruntland Commission (1987 Report “Our Common Future”) as “the development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. In 2001 the European Commission issued its first strategy for sustainable development, linked to the work of the European Environment Advisory Councils (EEAC). A working group was established to state “Green sustainable development strategies” with the underlying message that, in the longer term, a healthy environment is fundamental to economic development and human welfare. They should also define a framework for integrating environmental consideration into EU policies in every sector, in addition to economic and social indicators. The EEAC then proposed significant changes to policies in several sectors, which in some cases are directly related to the battery/energy storage industry, such as:

Energy: A need for very large reduction of CO2 emissions in the long term. Structure energy markets to encourage low-carbon technologies.

Transport: More ambitious targets to reduce fuel consumption of vehicles

Measures to promote less environmentally damaging forms of transport.

4.1 Batteries and Sustainable Energy Policies According to the Kyoto protocol, the EU is committed to reduce its greenhouse gas emissions by 8% as compared to 1990. Moreover, 94% of CO2 from human activities can be attributed to the energy sector, whereas 90% of the increase is attributable to road transport. On the other hand, according to the green paper “towards a European Strategy for the security of energy supply”, which considers the growth of energy needs and the dependence on external energy supply sources, the EU has set a target that, in 2010, 12% of the total energy consumption should be from renewable resources. Due to the intermittent nature of many renewable energies, and the need to adjust energy supply to energy consumption peaks, energy storage is a key issue in the achievement of these targets. Batteries, as autonomous and well proved electrochemical energy storage systems, are enabling technologies for future sustainable energy systems, characterized by a higher integration of Renewable Energy Systems (RES) into grids and decentralized generation. Batteries can contribute to solving the following key issues:

Intermittent nature of RES. Load leveling (peak consumption). Power quality management. Voltage and frequency support. Reserve capacity and emergency supply. Supply power peaks in hybrid systems with stationary fuel cells.

4.2 Batteries and Sustainable Transport Policies

Within the generic target of promoting clean urban transport, hybrid vehicles, both with conventional internal combustion engine (ICE) engines in the short-medium term, or powered by a fuel cell in the long term, appear in the EUCAR-CONCAWE-JRC report “Well-to-Wheels Analysis for future Automotive Fuels and Power-Trains in the European Context” as the best option to achieve further fuel consumption and emissions reductions. In both cases, the battery is a key element providing energy at start and acceleration, and to recovering energy during braking, as well as supplying energy to all vehicle consumers during stop and idling periods. The step leading to success in hybrid vehicles is on the short to mid-term because of the increasing oil prices and lower costs of components.

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4.3 Batteries and Social & Employment Policies Batteries represent, at the present time, the main solution to energy storage needs in a widespread number of autonomous applications, from vehicles and portable devices to RES systems, through a variety of industrial uses, mainly related to assuring energy supply in cases of mains failure (UPS, telecommunications), as well as in strategic defense applications. For this reason, batteries are key technologies for many European strategic industrial sectors, in which social welfare and employment are key issues. The ability to continue or further increase research and deployment of the new technologies is highly dependent on a strong manufacturing base for batteries in Europe. This sustainable industrial base is a requirement for continued RTD efforts by companies in Europe, which in turn supports the competitiveness of the industry in Europe in sectors much wider, namely those that incorporate batteries as an essential part of their electronic and electrical technology. Finally this will benefit European employees and consumers.

4.4 Battery and Environmental Health & Safety Policy The European Battery Industry has fully endorsed the principles of the European environmental policy:

Set up of closed-loops systems, which already ensure a very high level of collection and recovery rates for automotive & industrial batteries.

Decreasing the environmental impact of resources use and waste. Decreasing energy and material consumption.

Over the years the industry has issued statements regarding its excellent environmental responsibility and sound product stewardship. The high quality of production and outstanding level of recycling of batteries and their components has been underlined in several ways. This performance and continue need for industrial and automotive batteries are recognized by the European Council of Ministers, in their adoption of the text of a new draft Battery Directive in First Reading on 20 December 2004. The Life Cycle of the product needs to take into account the safe production, which is covered by stringent regulations for worker’s health and safety in the battery industry across Europe and with strict implementation of those rules. Via EUROBAT the manufacturers and recyclers have also contributed significantly to positive quantitative and qualitative aspects of the multi-annual project of the Voluntary Risk Assessment for Lead under the leadership of the LDAI, and reviewed by the Member States. The draft report will be published in 2005 and is scheduled for finalization in 2006. The advantages of batteries also apply from an environmental viewpoint to the fact that there are no emissions from batteries during it useful life. In addition, there are collection and recycling systems are in place since decades. The value of the materials in the automotive and industrial batteries at the end of their life is sufficiently high to cover all the costs of collection & recycling. The battery industry has promoted these aspects and some battery producers have also implemented the theory by operating the recycling facilities for the lead acid and nickel-cadmium automotive and industrial batteries. The recycling process is state of the art and in conformance with the EU rules for Best Available Technology. The recovery of the lead preserves crucial natural resources. It is noted that relatively low energy consumption is needed for the conversion into secondary lead as a material for new products. The use of batteries should be placed also in the context of the sustainable development (environmental, economic and social) goals of the EU. Key examples are the new and emerging applications of batteries in hybrid vehicles, electric vehicles or vehicles powered by fuel cells for the reason of reducing emissions, or avoiding of local emissions. The industrial batteries, as stated elsewhere in the report, are an important power supply in rural areas (solar panels, wind energy, hydropower). They are also used for standby in control devices e.g. for filter systems, waste water plants, safe running of industrial processes, hospitals, emergency control rooms and transport security and safety. The development of battery technologies will bring more efficient batteries to the market.

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5 SUPPORT FOR BATTERY RESEARCH DEVELOPMENT WITHIN PREVIOUS EUROPEAN FRAMEWORK PROGRAMMES

5.1 Position of Energy Storage RTD in the European Framework Programmes

As energy storage is considered as a key enabling technology for the development of sustainable energy systems, the EU has funded RTD on energy storage for stationary and transport applications through successive Framework Programmes (FP2 to FP6). However, if the structure of the previous FP allowed the European Battery Industry to develop innovative solutions for different battery issues (materials, manufacturing process, system integration), the focus of the current FP6 on a limited number of thematic priorities makes it very difficult for the European Battery Industry to be involved, especially in the first FP6 calls.

5.2 Battery RTD in FP4 Most of battery RTD projects were funded in the Joule programme and concerned materials, processes and components for energy storage as well as energy storage systems integration: 29 M€ were allocated to 19 projects on energy storage, of which 21 M€ were allocated to 12 projects for research on advanced batteries (mainly lithium and lithium polymer).

Other FP4 programmes contributed to battery development such as Brite-Euram programmes (innovative battery materials) or Thermie programmes (demonstration) for example. The main result was the qualification of Li-Ion technology for industrial and automotive application demonstrated with the road tests performed by FIAT and DaimlerChrysler on electric vehicles:

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5.3 Battery RTD in FP5 Most of the battery RTD projects were funded in the “Energy, Environment and Sustainable Development Programme” (EESD). Target action related to energy storage. 21 M€ were allocated to 20 projects on energy storage, of which 18 M€ were allocated to 15 projects related to battery or battery related technologies. Other FP5 programmes contributed to battery development, such as Growth (Competitive & Sustainable Growth) programmes for road transport applications. These projects were related to research & development on battery systems for hybrid vehicles and for the integration of distributed energy resources, such as renewable energy sources (RES). The following projects had important results:

INVESTIRE: the European Battery Industry participated in a network to evaluate the current and future energy storage technologies for intermittent RES applications and to define a RTD road map.

ABLE: an advanced storage system for small & medium-sized PV systems based on an innovative

design of lead-acid battery, was studied and testes.

Li-ion-HEART: this project is related to the continuation of the Lithium RTD efforts performed in the FP4 to study an innovative battery system architecture for hybrid vehicles.

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5.4 Battery RTD in FP6

The FP6 structure is very different to the previous FPs, with focus on some thematic priorities. New electricity networks based on Distributed Energy Resources (DER) are considered to be a priority, but the energy storage technologies are only components of this new concept. However, as the DER networks face many issues and are expected to be implemented in a medium-long term timeframe, the FP6 RTD programmes have concentrated industrial efforts on DER implementation issues, and have only studied the energy storage integration issue. Battery research is only performed in a network of excellence (ALISTORE), which gathers the main European research centers to study advanced lithium battery systems based on the use of nano-materials: a breakthrough is being researched for the 2025 time frame, but nothing is foreseen in the intermediate future. The FP6 situation is completely different to FP4 and FP5, which supported industrial RTD on batteries: 39 M€ was allocated to various different topics (see below):

The first half of FP6 shows a large reduction of funding for battery development compared to previous FPs as below:

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6 BATTERY CHALLENGE FOR THE FUTURE

6.1 Principles The strong concern of the EU for Sustainable Development leads to wide challenges on major issues for the future:

Growing concerns on the emission of greenhouse gases since the Kyoto protocol which has been signed by EU,

Raised questions on the security of the energy supply in Europe due to the increasing dependence

on oil (70% in 2030),

Stronger public opinion on waste issues to be considered from the point of view of product life cycles.

Within that perspective, electricity is a key energy form, but it does require storage systems to match the requirement for easy availability at the point of use. So, the battery challenge for the future will be to contribute to a widespread use of electricity in a way compatible with the economic and environmental requirements. The battery challenge must cope with two different situations:

Stationary situation: the Battery Industry will have to provide innovative solutions at the following three levels:

• Production of electricity in order to reach high quality standards. • Electricity network in order to guarantee a permanent supply of energy. • Customer level in order to customize the standard electricity service to specific situations:

medical environments, high technology processes, isolated locations.

Mobile situations: the mobile human being must be able to use electricity for two main applications:

• Propulsion application: electricity use contributes simultaneously to decrease the emission of greenhouse gases and to safeguard fossil based energy.

• Supply of on-board equipment: automotive power networks, engine starting. In particular, the Battery Industry will face strong challenges in the following areas:

Energy Transport Customer service

6.2 Energy Area The battery industry challenges are related to the use of new electricity generation systems and the installation of new electricity networks.

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6.2.1 New Electricity Generation Systems

The battery challenges are indicated below: TYPE OF SYSTEMS ENERGY STORAGE INTEREST MAIN CHALLENGES

Photovoltaic system High Energy management systems, optimized battery charge conditions, BMS, life, cost

Wind power systems Medium - high Power capability, life, cost Hybrid system (Conventional + Renewable) Medium Energy management system, life,

cost

Fuel cell systems High Power capability, energy management system, cost

6.2.2 New Electricity Networks

New electricity networks will be based on the integration of renewable energy sources (RES) and distributed generation (DG): integrated or stand-alone use of small, modular energy conversion units close to the point of consumption. Two types of electricity grids are envisaged:

Large grids related to widespread electrical distribution systems.

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Mini-grids related to small electrical distribution systems that connect multiple customers to multiple sources of generation: communities with population ranging up to 500 households.

The battery challenges are indicated below: Distributed Energy network ENERGY STORAGE INTEREST MAIN CHALLENGES Large grid Medium Load levelling (Peak shaving) Mini-Grid High Load levelling, power quality

6.3 Transport Area

Battery challenges are mainly related to the “greening of the different transport systems”:

Air transport system: reduction of emissions by using “more electrical” aircraft. Road transport systems: reduction of emissions and fuel consumption by using hybrid propulsion

systems (FC based or ICE based) or pure electrical propulsion. Rail transport systems: reduction of emissions or energy consumption by better energy

management. Waterborne systems: reduction of emissions and fuel consumption by using hybrid propulsion

systems or pure electrical propulsion.

The battery challenges are indicated below: TRANSPORT SYSTEMS ENERGY STORAGE INTEREST MAIN CHALLENGES

Air transport High Reliability, specific energy and power

Road transport High Specific energy and power, life, cost, reliability

Rail transport High Life, cost, reliability Waterborne High Life, cost, reliability

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6.4 Customer Service Area Battery challenges are mainly related to energy security issues concerning the following customer applications:

Industrial applications: power quality. Communication networks: energy security supply for communication networks (fixed, mobile,

wireless, broadcasting). Health systems: energy security supply of new medical devices. Space systems: power supply for satellites.

The battery challenges are indicated below: CUSTOMER SERVICE AREAS ENERGY STORAGE INTEREST MAIN CHALLENGES

Industrial applications High Life, cost, reliability

Communication networks High Reliability, life, cost

Health systems High Reliability, life, cost

Space systems High Reliability, life 7 LINKS WITH IDENTIFIED TECHNOLOGY PLATFORMS

7.1 Background The major economic, technological or societal challenge with which Europe is faced, are illustrated by the emergence of Technology Platforms (TPs). The different TPs define RTD priorities for a number of strategically important issues with high societal relevance where achieving Europe’s future growth, competitiveness and sustainable objectives are dependant upon major research and technological advances in the medium to long term. Some of the current TPs are expected to need energy storage to take up their challenges, while others, on the contrary, are expected to help the energy storage to reach their objectives. Some links will be set up with both categories of TPs to define the relevant strategic research agenda (SRA):

Battery RTD can only be carried out for identified applications. Battery RTD is dependant on generic technologies: for example manufacturing processes, nano-

technologies.

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7.2 TPs Requiring Energy Storage The following TPs are expected to use battery systems as key enabling technologies:

HYDROGEN AND FUEL CELLS: (transport, grid or portable applications) Due to the preferred constant working regime for fuel cells, and the high investment costs to dimension fuel cells for peak power needs, batteries are the complementary storage devices, both for peak power demands and to store energy generated and not used immediately.

ROAD TRANSPORT (ERTRAC):

Batteries are key components in hybrid electric vehicles, aimed at storing energy that is generated during regenerative braking and assisting the ICE during start and acceleration.

RAIL TRANSPORT (ERRAC):

Efficient use of energy by the rail transport operators needs to use batteries for recovering all energy available during the operations (braking energy recovery), on board Energy Storage and energy storage in Sub-stations.

MARITIME TRANSPORT (ACMARE):

High performance battery systems are expected to allow the development of electrically powered ships.

AERONAUTICS (ACARE):

The development of the “More Electrical Aircraft” concept is expected to derive benefit from the use of high performance batteries for the new electric network.

THE EUROPEAN SPACE TECHNOLOGY PLATFORM:

Battery system use is essential to supply the satellite equipment.

EUROPEAN PHOTOVOLTAICS TECHNOLOGY PLATFORM: Batteries will be needed for energy storage to cover periods of insufficient supply situations and to improve system efficiency and power quality.

EUROPEAN WIND ENERGY PLATFORM:

Batteries will be needed for energy storage to cover periods of insufficient wind and to offer high quality electricity to the network.

ELECTRICITY NETWORKS OF THE FUTURE:

Batteries may serve as an important medium for storing energy and stabilizing the networks.

MOBILE COMMUNICATIONS TECHNOLOGY PLATFORM: Batteries supply energy to keep communication systems working in remote areas. Battery performance should be improved to increase reliability and life under extreme environmental conditions.

BUILDING FOR A FUTURE EUROPE:

In conjunction with PV and FC systems, batteries will be used in the building of the future to store and provide energy.

7.3 TPs Contributing to Energy Storage Development The following TPs are expected to help the Battery Industry to meet its challenges:

TECHNOLOGY PLATFORM ON SUSTAINABLE CHEMISTRY: The development of new materials (nano-technology based, for example) is considered the basis for improvements in battery performance.

MANUFACTURING TECHNOLOGIES: The industry has already achieved a good level of efficiency, but it can be improved with new manufacturing technologies, which are vital to remain competitive against Asian suppliers.

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8 BATTERY VISION FOR THE FUTURE: 2020

8.1 Vision The battery vision for the future is based on customer needs: “Electrical Energy Storage System” (E2S2), which provides the user with energy at all times when energy is needed, in an economical and environment-friendly way. The "Smart Battery" of the future will be able to predict the ability of the electrochemistry to perform adequately under the application requirements by determining the so called SOF (State of Function), which is related to the SOC (State of Charge) and the SOH (State of Health) information. The SOF will give a prediction of available capacity and discharge and recharge capability, thereby allowing a "Smart Battery” to forecast the response of the electrochemistry to the application demands. Therefore, in the future, the customer will not have to worry about restrictions of the system or which technology is applied. The “Smart Battery” will be a so called “Black box” system in the form of an intelligent energy supply and storage system built into different technologies, for example, hybrid systems in various combinations of existing battery systems, fuel cells, supercapacitors and equipped with the necessary electronics, in the form of controller, management and monitoring systems. The optimal utilization of the “Smart Battery” regarding the performance and lifetime, and therefore a better overall energy management within the application, is guaranteed in the future. The battery vision is based on the two following concepts:

A “Pentagon of Virtues” concept related to the five high-level targets that must be taken into account to build the battery vision

“E2S2” concept related to the realization of the battery vision

8.2 “Pentagon of Virtues” For each application, the battery of the future will have to optimize the “Pentagon of Virtues” based on the five following high-level targets:

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8.2.1 Performance According to different situations, the performance issue is based on the following criteria: PERFORMANCE CRITERIA DEFINITION Energy density Available energy per litre or kilogram Power density Available power per litre or kilogram

Response time Speed with which the energy or the power has to be released or absorbed

Operating constraints Climatic conditions, temperature, safety, size, voltage

Shape Strong requirements on battery shape: thickness Lifetime Cycling or calendar life

Efficiency Energy losses related to the battery operation

8.2.2 Reliability The unexpected failure of a battery system cannot be accepted in the future: the customer must be informed continuously about the state of health (SOH) and the state of charge (SOC) of the battery. The battery performance must be preserved during the life of the application: maintenance processes must be reduced to a minimum.

8.2.3 Industrial processes The industrial process is key for the battery performance, for battery reliability and for environmental control: it also has a large impact on battery cost. Any slight modification to the electrochemistry will lead to a more or less important modification in the process: it could prevent the right product being provided to the right application. Industrial Safety is also a key issue for the Battery Industry: occupational health and safety of the workers and environmental safety, including prevention of major accidents and protection of the environment.

8.2.4 Environment The environment issues are related to all stages of the battery life-cycle:

Cost Battery cost represents the consequence of the four previous issues of the “Pentagon of Virtues”: the main challenge will be to offer a battery solution suitable to all situations from the economic point of view.

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8.3 “E2S2” concept In order to fulfil the different requirements, the European Battery Industry will have to provide “Electrical Energy Storage Systems” (E2S2) instead of cells or modules. The E2S2 is composed of four functional parts, as shown below:

Electrochemical system: assembling of electrochemical cells or modules Application interface: communication with the application User interface: man-machine interface Energy management: management of the E2S2

8.4 Electrochemical Systems

Different electrochemical systems can be used but only three of them are expected to be able to take up the energy storage challenges, as in the table below:

Electrochemical Systems Current use Strengths Weakness Improvement

potential

Lead/acid Automotive Industrial Low cost Life duration ***

Ni/Cd Portable Industrial Life duration *

Ni/MeH Portable Low volume Low temperature ***

Ni/Zn Life duration *

Li-Ion Portable High energy & high power High cost *****

Na/NiCl2 High energy Low efficiency * The three electrochemical systems candidate for the future are expected to be:

Lead-Acid. Ni/MeH. Li-Ion.

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9 STRATEGIC RESEARCH AGENDA (SRA)

9.1 Vision In order for this vision to be achieved, many very encouraging but scattered developments need to be shaped into a coherent long-term and market-oriented strategy, accompanied by a set of specific transitional actions: in particular, as batteries are already considered to be a key component of some TPs, or as batteries can expect to benefit from the results of some TPs, the battery programme will have to be co-ordinated with the relevant research programmes. In addition, since the battery used to be considered as a commodity product that can be bought off the shelf, it is absolutely essential to involve the Battery Industry at the early stages of development, in order to be able to provide the right component in time. This research effort will be based on the following actions:

Basic research: focusing on promising materials, new electrochemical concepts, new manufacturing processes and new system architecture.

Applied research and development: results of the basic research should be critically assessed for their industrial potential, and materials, concepts and processes have to be transferred effectively and rapidly to a prototyping level, according to manufacturing needs.

Demonstration: related to the interested TPs. Supporting research: providing support in the socio-economic, standardization, quality assurance

and environmental areas. This effort will gather the Research Community (Universities, Research Institutes, Private Research), Industry (Battery Manufacturers, Battery Material Suppliers, Electronic/Engineering, Specialists, Collecting/Recycling Organizations) and Regulatory Bodies (Standardization, Environment, Security). The Battery Strategic Research Agenda (SRA) is driven, for each electrochemical system by:

The five major challenges that interact in addressing its overall objectives. The requests expressed by the relevant TPs for the different applications.

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This table indicates the driver for each application + : positive impact = : no change - : negative impact NA : non applicable

Applications Main Issues Characteristics

EV HEV PV Wind DER TELECOM UPS Others Stationary Aviation Space

Energy density + = - - - = = = + + Power density = + - + = = + = + +/=

Charge Ability = + - + = = = = - = /- Performances

Operating temperature = + + + + + + +/= + +

Life + + + + + + + + + + Reliability

Safety + + = = = = = = + = Industrial processes control

+ + + + + + + + + +

Energy consumption and C02 emission for battery production

= = = = = = = = = = Environmental Compliance

Energetic efficiency

+/= +/= + + + + = +/= - -

Cost + + + + + + + + = - Cost Life cycle cost = = + + + +/ = +/= +/ = + +

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9.2 Lead-Acid SRA

9.2.1 Objectives The main objectives for Lead-Acid SRA are shown in the table below:

Main Issues Characteristics State of the art Objectives

Energy density

Wh/kg Wh/l

30-35 100-110

35-45 110-140

Power density (in discharge)

W/kg W/l

500 1500

750-1000 2000-2500

Charge Ability

Recharege Regen

1 h for 80% capacity, up to 6C, but depending on SOC

30 min for 80% capacity, up to 10 C at low SOC

Performances

Operating temperature -30ºC / +50ºC -40ºC / +60ºC

Life ( years) 5-10 10-15

Reliability Safety

Safe in normal operation, H2 emissions in prolonged overcharge conditions

VRLA (sealed)

Industrial processes control

Continuous process for electrode manufacturing. Well defined assembly and formation procedures

Improve process tolerances and reliability to reduce scrap. Reduce energy consumption in certain manufacturing processes

Energetic efficiency (%) 80-85% 85-90% Environmental compliance Battery

production

Energy consumption C02 emission

Reduction 10-20%

Cost (€/kWh) (€/kW)

50-150 8-10

50-100 6-8

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9.2.2 Lead-acid workprogramme The previously detailed objectives will be achieved through the RTD activities indicated below in the table: + : positive impact = : no change - : negative impact NA : non applicable

Impact Workprogramme Performances Reliability Process Environment Cost

Comments

For the short/medium term (3 – 5 years) • Improved active material

formulations to achieve: • Higher active material

efficiency • Increased battery life

under deep cycling and partial state of charge working conditions

• Increased charge acceptance at different rates, and specially at high rates.

• Improved materials for battery components:

• Separators with lower electrical resistance and higher mechanical and acid absorption properties

• Lighter plastic components and non active lead parts.

• Design and development of a low cost VRLA battery for automotive applications

• Further development of continuous manufacturing processes with lower tolerances and higher reliability

• Improve process conditions to reduce energy consumption (i.e. battery formation)

+ + + + + + = =

= + + + = = + =

= = = + = = + +

+ + = = = = = +

+ + = = + + + +

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Impact Workprogramme

Performances Reliability Process Environment Cost Comments

• Development and integration

of energy management systems to optimize charging profile and adapt algorithms for SOC and life prediction.

• Development of hybrid power systems for specific applications: feasibility studies and demonstration programmes.

For the long term (10 -15 years) • Further improvements on the

above mentioned aspects: • Material and process

development. • Development of energy

storage systems for each application.

• Implementation of hybrid energy storage systems for the different applications:

• Battery + supercapacitor or flywheel for instant power storage

• Battery + fuel cell for constant power supply

+ + + + + +

+ + + + + +

= = + = = =

= = + = = +

+ + + + = +

LCC Performance synergy

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9.3 Ni/MeH SRA

9.3.1 Objectives: The main objectives for Ni/MeH SRA are shown in the table below:

Main Issues Characteristics State of the art Objectives

Energy density (High Energy System)

Wh/kg Wh/l

60 170

65 190

Power density (High Power System)

W/kg W/l

1,000 2,600

1,200 2,900

Charge Ability

Recharge Regen < 10 min @ 10C

Performances

Operating temperature -40ºC / +50ºC -40ºC / +60ºC

Life ( years) 10 15

Reliability Safety

Safe in normal operation, H2 emissions in prolonged overcharge conditions

Industrial processes control

Continuous process for electrode manufacturing. Well defined assembly and formation procedures

Improve process tolerances and reliability to reduce scrap. Reduce energy consumption in certain manufacturing processes

Energetic efficiency (%) 90% 90-95%

Environmental compliance Battery

Production

Energy Consumption C02 emission

Reduction > 20%

Cost (€/kWh) (€/kW)

700 70-100

< 500 30

State of the art and objectives at battery system level (including battery management and interfaces)

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9.3.2 Ni/MeH workprogramme The previous detailed objectives will be achieved through RTD Activities indicated in the table below: + : positive impact = : no change - : negative impact NA : non applicable

Impact Workprogramme Performances Reliability Process Environment Cost

Comments

For the short/medium term (3 – 5 years) • Improved active material

formulations to achieve: • Better charge

acceptance at higher temperatures

• Higher power capability at low temperatures

• Improved battery components:

• Separators with lower electrical resistance

• Plastic components for cell/module housing

• Reduction of Co content in NiMH battery

• Validation of battery management system aiming at improving determination of state of charge, state of health and state of function

• Development of efficient cooling strategies

• Development of recycling strategy and processes

• Improved packaging / improved module design

• Improved process conditions to reduce energy consumption

+ + + = = + + = + =

= = = = + + = + = +

= = = + = = = = + +

= = = = + = = + = +

+ + = = + + + + + +

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Impact Workprogramme Performances Reliability Process Environment Cost Comments

For the long term (10 –15 years) • Further improvements on

the above mentioned aspects:

• Further material and process development as described in short term objectives

• Improving continuous production steps with respect to production cost, tolerances and product quality

• Establishing an economic and reliable recycling process

• System design and packaging improvements

• Develop warranty models

+ = = + =

+ + + = +

= + = = =

+ + + = =

+ + + + +

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9.4 Li-Ion SRA

9.4.1 Objectives The main objectives of the Li-Ion SRA are shown in the table below:

9.4.2 Li-Ion workprogramme The previously detailed objectives will be achieved through RTD activities in three main categories:

Materials (Active materials for electrochemistry). Battery Technology (Electrodes, Components Assembly, Packaging). System integration (Battery Shape, Battery Management, System Interfaces)

These activities will impact the “Pentagon of Virtues”.

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9.4.2.1 Short-term workprogramme (< 5 years) + : positive impact = : no change - : negative impact NA : non applicable

9.4.2.2 Long-term workprogramme + : positive impact = : no change - : negative impact NA : non applicable

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+ : positive impact = : no change - : negative impact NA : non applicable

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9.5 Links with TPs These RTD programs will need complementary skills and resources which should be coordinated by the Technology Platforms:

Research Community (Universities, Research Institutes), Industry (OEMs, Engineering Companies, Component Manufacturers), Utilities (for all applications related to energy production and distribution), Testing Institutes, Standardization Bodies, Public Authorities (at national and EC level) in charge of policy and legislation for energy and the

environment, Financial Sector.