I often think I know more about things than I really do. And one thing I think I know a lot about is batteries – the kind that goes in your Prius, and the kind that will go in your Volt. As most car-folks know, the battery industry is currently transitioning from nickel-metal-hydride (NiMH) batteries (i.e., what’s in your Prius) to lithium-ion (Li-ion; i.e., what’s in your Volt. Or Leaf. Or Tesla.). And, it turns out, a battery isn’t just a battery – different types of batteries require significantly different control mechanisms to manage how much and how quickly they are charged and discharged, and how they behave while in operation, so that lifetime, safety, and performance are maximized.
But it’s even more complicated than that. There are dozens of different Li-ion battery chemistries. Every battery manufacturer has their own idea of the right combination of chemistry and manufacturing process that will result in the winning formula. But each of these batteries has very unique characteristics that require very specific controls once it’s embedded in an automobile. Auto manufacturers, on the other hand, would like to be chemistry-agnostic. (They just want a battery that meets their requirements.) But, given that the battery dictates the control software, it’s not so easy for a car maker to just pick a battery off the shelf. Substantial development effort must take place between the auto maker and the battery maker, so that the car and the battery work together as a system. (Just look at all the effort that has gone into the Volt’s development, in conjunction with Compact Power / LG Chem.) Once a vehicle has been developed with a particular battery in place, changing battery suppliers would be a major hurdle. As a result, there have been a lot of joint-ventures formed between auto manufacturers and battery companies, effectively tying their efforts together.
In the end, we’ll likely see each electrified automobile maker tied to one particular type of battery. But there’s also the issue of standardization in the industry. I wonder, if each auto/battery manufacturer takes a different path, will this complicate standardization? How will this effect business models like Better Place – will their entire infrastructure be wedded to one type of battery and one manufacturer?