The perspective on the automotive lead-based battery market Johann-Friedrich Dempwolff EUROBAT Board Member Managing Director, Vice President Industry and Governmental Relations Johnson Controls Power Solutions EMEA
Johnson Controls Inc Global $42 billion USD diversified company in the building and automotive industries Automotive Experience Building Efficiency Power Solutions 2 A global leader in automotive seating, overhead systems, door and instrument panels, and interior electronics. A leading provider of equipment, controls and services for heating, ventilating, air-conditioning, refrigeration, and security systems for buildings. Lead acid automotive batteries and lithiumion hybrid and electric battery systems that make vehicles more energy efficient.
1. Introduction to EUROBAT
ABOUT EUROBAT Association of European Automotive and Industrial Battery Manufacturers Promotes the interests of European manufacturers and supply chain of automotive and industrial batteries Represents the industry on European Institutions level Provides expert information to stakeholders Includes important players
Membership Battery Manufacturers
Membership Supply Industry
European Battery Industry Battery Manufacturers + Supply Industry > 30,000 direct jobs!
Batteries: Sustainable & Efficient Technologies Four major technologies Lead based Proven application Low production cost Nickel based Consumer, HEV Long life Lithium based Consumer, HEV, EV High energy density, weight Sodium based Large storage options Energy density, weight
2. Lead-based batteries in Europe
Lead-based battery manufacture and supply industry in Europe Key Facts Employees: >20.000 Turnover: > 5 billion R&D invest : 50 million
European leadership in Advanced lead-based batteries World-leaders in production Start-Stop systems in Micro-hybrid vehicles On-grid and Off-grid Renewable Energy Storage
3. Influences on the lead business
Influences on the lead business Regulations Us as industry Technology Customers What is the influence?
Regulatory requirements for fuel economy and CO 2 emissions in the automotive sector CO 2 Targets 2012 2015 2020 154 130 95 182 162 132 179 160 116 grams CO 2 /km Europe 15% by 2015 25% improvement over 2015 levels by 2020 United States 15% by 2016 40+% improvement in average fuel economy by 2025 China Aligning requirements around EU regulations Existing and pending legislation continues to push automakers to introduce new technologies
Battery Technology and Applications Transport Sector New European Green Vehicles Initiative (in Horizon 2020) recognises the importance of R&D into all levels of hybridisation and electrification SLI Conventional combustion engine EFB Simple start-stop systems AGM High cycle needs and advanced Start-Stop + + < 50 V Micro Hybrid HEV + + PHEV + + EV
Key energy storage attributes tend to work against each other.. The solution: Dual storage system! Cycling Usable Energy Charge Acceptance
Near-Term Reality: Evolutionary technology is winning mass market adoption + + + + < 50 V 2020 Forecast (2012 look) Updated 2020 Outlook Global Gas Average / l: 1,21 US, 1,62 EU, 1,41 China
Fuel Economy (MPG) Micro Hybrid Option Customer s choice? Mid-Size Car - US fleet Configuration l/100 km 6.5 5.2 4.0 X Engine friction loss reduction Advanced auto transmission X X X X X X Electric power steering X X X Improved aerodynamics X X X Low Rolling Resistance Tires Combustion Restart X X Direct Injection X X Cylinder Deactivation X X Conversion to Diesel (DSLC) Start-Stop Micro Hybrid (48V) X X Hybrid Electric Vehicle (HEV) X X X X X X Incremental Vehicle System Cost ($) High Efficiency Start-Stop Micro Hybrid HEV Micro Hybrid systems can be a cost effective complement to other strategies
4. Challenges from the European legislation for lead
Rulemaking affecting lead based product and operations Battery Directive 2006/66/EC Regulates the distribution of batteries and the obligations regarding the collection and handling of used batteries PRODUCT focussed Revision ~ 2016 ELV Directive 2005/53/ EC = End of Life Vehicles Bans the use of lead in cars and light commercial vehicles OEM focussed Revision ~ 2014 REACH = Registration, Evaluation, Authorization, restriction of CHemical substances Certain substances cannot be placed on the market or used after a given date, unless an authorization is granted by the European Chemicals Agency (ECHA) SUBSTANCES focussed Candidate list and authorisation process ~ 2014
Rulemaking affecting lead based product and operations - ELV ELV Directive 2005/53/ EC = End of Life Vehicles Bans the use of lead in cars and light commercial vehicles OEM focussed Revision ~ 2014 Aim: Maintain the current exemption in the ELV Directive, considering all possible technologies, including possible enhancing of the performance Participants: Car Industry: ACEA, JAMA, KAMA / EUROBAT / International Lead Association Activities: Evaluation of resource availability Review of batteries technologies for automotive and industrial applications Launch of Life-Cycle Analysis of lead-based battery technologies
Rulemaking affecting lead based product and operations - REACH REACH = Registration, Evaluation, Authorization, restriction of CHemical substances Certain substances cannot be placed on the market or used after a given date, unless an authorization is granted by the European Chemicals Agency (ECHA) SUBSTANCES focussed Candidate list and authorisation process ~ 2014 Status: 4 lead compounds from the Registry of Intention (ROI) were added to the Candidate List of Substances of Very High Concern and are now in the final revision of the priorization list Priorization process every year ending in Spring All 4 substances are irreplaceable in the lead battery production Selection of four Lead compounds for authorization would create pressure for substitution of automotive and industrial batteries
Effects of authorisation on the battery industry An unpredictable and unstable legal framework: Battery Directive 2016 ELV 2014 REACH only temporary permanent risk on the future of lead-based battery manufacturing/use. REAC H 2014 ELV Consequences: Increased imports REACH only regulates EU Loss of level playing field High investment risk
Tightening of Occupational Exposure Level We have to adjust to this risk! and get prepared EUROBAT Members agreed to tighten the targets in near future EUROBAT provided last blood lead workshop for members in November EUROBAT is currently conducting a new survey to update the blood lead data 2
Lead-based batteries: Closed loop recycling We have a unique recycling rate! and all cards in hand to be one of the most resource efficient products Self-sufficient and independent The best example of resource efficiency 95% of lead-based batteries collected and recycled New batteries out of ca. 70 % recycled lead and plastic.
Lead is an old industry but with a great future! Do not put your company at risk: To meet environmental challenges is not just an obligation of good citizenship! Severe damage to company image, claims for indemnification! Threat for the whole industry! There are new challenges present: Battery Directive ELV REACH
Lead is an old industry but with a great future! If we recognize and agree: Lead needs specific attention in the whole value chain: Meet legislative targets in West and East! Meet transport and collection obligation! Use recycling opportunities! Do not sacrifice standards for assumed short-term competitive advantages! We have to keep standards on a high level with a clear direction to improve!
Lead is an old industry but with a great future! The future will bring: The specification for lead as raw material for batteries will get tighter! Compliance requirements from the battery industry will be more restrictive in the future! Each industry partner has to meet the most restrictive requirements possible! The room to improve is much wider than you think!
Lets work together to overcome the challenges!. and let us pull together to enjoy the great future of a strong industry with modern, clean and efficient products THANK YOU!
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EU Climate Policies creating new markets for Energy Storage Transport Sector Start-Stop functionality in 75% of new European vehicles, resulting in fuel efficiency savings of 8-10% FUTURE Start/Stop Technologies On the road already: Start-Stop with voltage stabilization system ehdi technology with lead-acid AGM battery and Supercaps + Engine off while approaching a stop, but at vehicle speed < 20 km/h (not after complete vehicle standstill as today)
EU Climate Policies creating new markets for Energy Storage FUTURE Start/Stop Technologies Under development of car manufacturers: Stop-in-motion : Engine off at higher speed always when no acceleration needed Transport Sector EU targets and funding opportunities have encouraged further development of advanced lead-based battery technologies
EU Climate Policies creating new markets for Energy Storage Energy Sector Statement: Electricity storage is a clear technology priority for the decarbonisation of the European power system of 2020 and beyond Eurobat provided to European Commission: 2050 Roadmap on Energy Storage The future role and challenges of Energy Storage