Lead-Acid Battery Manufacturing Space | EV Manufacturer Perspective

Client: investment management firm

Executive Summary

This case study provides an overview of lead-acid battery production within the context of electric vehicle (EV) manufacturers. It examines the production processes, procurement strategies, and the role of lead-acid batteries in the evolving landscape of EV technology, particularly as manufacturers transition to more advanced battery technologies.

Overview of EV Battery Production

1. Battery Types and Applications:
   • While lithium-ion batteries dominate the EV market, lead-acid batteries still play a role, primarily in specific applications such as auxiliary power for conventional vehicles and in low-speed electric vehicles (LSEVs).
   • Lead-acid batteries are often used for starting, lighting, and ignition (SLI) applications, as well as in hybrid systems for energy recovery.
2. Production Processes:
   • The production of lead-acid batteries involves several key stages:
     • Grid Casting: Lead alloy is melted and cast into grids, which serve as the framework for the battery plates.
     • Plate Formation: Positive and negative plates are formed by pasting a lead oxide paste onto the grids.
     • Assembly: Plates are stacked and separated by porous separators, which prevent short circuits while allowing ion flow.
     • Electrolyte Filling: The battery is filled with a sulfuric acid electrolyte, which is critical for the chemical reactions that store and release energy.
     • Formation and Testing: Batteries undergo a formation process where they are charged and tested for performance metrics.
3. Environmental Considerations:
   • The production of lead-acid batteries involves significant environmental considerations due to the handling of lead and sulfuric acid. Manufacturers must comply with strict regulations regarding waste management and recycling processes.

Procurement and Manufacturing of Vehicle Batteries

1. Sourcing Strategies:
2. Manufacturing Decisions:
   • In-House vs. Outsourcing
   • Investment in Technology

1. Quality Control and Testing
2. Cost Management

Transition to Advanced Battery Technologies

1. Challenges and Limitations of Lead-Acid Batteries:
   • Lead-acid batteries have limitations, including lower energy density, shorter cycle life, and heavier weight compared to lithium-ion batteries. These factors are prompting many EV manufacturers to transition to advanced battery technologies for mainstream electric vehicles.
2. Role in Hybrid and Auxiliary Applications:
   • While lead-acid batteries may be phased out in full EV applications, they remain relevant in hybrid vehicles and as auxiliary power sources due to their cost-effectiveness and established manufacturing processes.

Conclusion

Lead-acid batteries continue to play a niche role in the EV manufacturing space, particularly for auxiliary and hybrid applications. However, the industry is increasingly shifting toward advanced battery technologies that offer higher performance and efficiency. OEMs are focusing on strategic sourcing, in-house manufacturing, and quality control to ensure reliable battery supply while navigating the challenges and limitations of lead-acid technology.