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In this second installment about lithium,

the lightest metal on Earth, we explore

its capacity to transform personal

transportation and the

energy equation worldwide,

as well as the implications

for FMC.

A TWO-PART STORY

Powering the Drive To a Greener World

The Right Chemistry. For Sustainability.

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As discussed in the first part of this story, lithium is the elemental source of power that enables us to reduce dependence on vehicles driven exclusively by the combustion of petroleum, in favor of hybrids, plug-ins and electric vehicles (EVs). FMC’s effort to sustainably extract and supply the purest possible form of this invaluable commodity has made the company one of three top lithium suppliers throughout the world.

The (Brain) Power to Build a Better Battery

Electric vehicles (EVs) are propelled by electric motors that use electrical energy stored in batteries. The fundamental building blocks of batteries are called cells. And a cell is a closed power source in which energy is stored chemically. Internal chemical reactions cause the energy to be released as a flow of electrons through an external circuit. In EVs, the power of that energy comes from – you guessed it – lithium.

Three of the main cell components are the anode, the cathode and the electrolyte. While FMC supplies lithium for all three components, the cathode is where the real action is. In the cathode, lithium does its most important work: storing and then supplying the positive charge that delivers the energy that makes the vehicle move.

So, basically, a battery’s energy is limited by the capacity of the cathode. Maximizing cathode performance is another FMC specialty. In addition to supplying lithium products directly to cathode manufacturers, FMC has also developed proprietary technologies to make cathodes work more efficiently. That intellectual property makes FMC a more valuable supplier and contributes to the drive for a greener planet.

The auto industry is gearing up for the prevailing trend toward EVs. The industry wants to be ready with a cost-effective supply to meet consumer demand. Most major automobile manufacturers are pursuing the use of lithium-ion batteries in their vehicles, for good reasons.

Can Lithium Go the Distance?

Lithium-ion technology offers higher energy density and higher specific energy at a lighter weight than nickel-metal hydride batteries, which are currently powering most hybrid electric vehicles (HEV). Batteries featuring lithium-ion technology are also lighter, less bulky and more efficient. These major benefits aside, Detroit and the rest of the industry know that the technology must continue to evolve in order to give consumers what they really want.

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The issue now, as it was nearly a century ago, is distance. Consumers want an EV that will give them at least a full day of driving: commuting, traveling or just transporting various family members where they need to go. The technology is not yet able to meet that consumer demand.

FMC supplies both lithium carbonate and lithium hydroxide to the first commercial versions of the EV like the Nissan LEAF, GM Volt and the Mitsubishi i-MiEV. The range of the Nissan Leaf and Mitsubishi i-MiEV is 100 miles without recharging, and 40-60 miles for the GM Volt. (The Volt is actually a PHEV, or plug-in hybrid. Its total range is augmented by a range extender, an internal combustion engine.) That kind of battery range will work for quick jaunts around town, but it represents clear barriers toward wider acceptance and greater demand for EVs.

Battery Cost and Performance – Not Lithium Supply – Are the Challenges

The world has enough lithium to power electric vehicle demand for decades to come. Lithium availability is not the problem. The hurdles are production cost, calendar life and range or driving distance for a lithium-ion battery used in EVs. To generate 1 kilowatt of energy, a battery requires approximately one kilogram of LCE (that’s Lithium Carbonate Equivalents, mentioned in part 1). The lithium-ion battery will not work without lithium, but lithium is not the cost driver. In fact, as this chart demonstrates, it’s only a small part of the total battery cost.

Reduced costs will largely come from battery production scale. The auto industry foresees demand for 1 million EVs in the U.S. by 2015. Meeting that demand will help fulfill FMC’s mission for growth by 2015 and also drive down costs for lithium-ion batteries for consumers.

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Cells $7,395

Lithium cost: approx. $150

Margin $3,600

Mechanical parts, packaging, labor

$4,005

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Certain advantages come naturally with increased market demand: manufacturing costs per unit shrink as volume increases. This will, hopefully, help drive down the cost of the EV, and in turn boost sales.

As for the issue of battery performance, extensive research is underway to make batteries that deliver higher levels of energy while maintaining safety – the key to both longer battery life and greater driving distance. The goals are first to extend the cycle life of EV batteries to thousands of cycles and, for hybrids, tens of thousands of micro-cycles, and, second, to extend driving range to 300 miles. All of this will require greater energy and power density within the batteries. New electrode materials are necessary to increase energy density of lithium-ion batteries.

Driving the Future of EVs

So, what is FMC doing to meet this growth trend? To further demonstrate our leadership position in the industry, in 2008 we established the Center for Lithium Energy Advanced Research (CLEAR) Lab. The purpose of the CLEAR Lab is to explore and expand the technology base for lithium-driven batteries such as those used in EVs.

The lab offers industry and academia training in the safe handling of lithium and develops customized solutions for specific customer applications. Equipped with a state-of-the art dry room and equipment to assemble full lithium-ion cells, the CLEAR Lab is used regularly by customers to incorporate FMC’s innovative products and technology into their batteries’ designs.

In December of 2008, CLEAR was awarded a $6 million grant from the U.S. Department of Energy for establishing a sustainable U.S. hybrid/plug-in hybrid manufacturing base. The grant funds R&D efforts for stabilized lithium metal powder, an enabling material and revolutionary technology for high energy, lithium-ion batteries.

The EV industry obviously needs “out-of-the-box” thinking to meet standards for lower costs, higher energy and improved lithium-handling safety. New electrode materials are necessary to increase energy density of lithium-ion batteries. There is also the need to break the current limitation that all the lithium used in the battery has to come from the cathode of a lithium-ion cell.

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Overcoming the Challenges

FMC is already hard at work, paving the way for the wider distribution and acceptance of EVs and a greener planet. At the forefront of this effort is FMC’s exclusive Lectro® Max 100, Stabilized Lithium Metal Powder (SLMP®). SLMP represents a significant advance for wider lithium applications, since normal lithium powder can only be handled in an argon-filled glove box and is not commercially available as a powder.

SLMP, on the other hand, is safe to handle in a dry room, can be transported by air or sea according to U.S. Department of Transportation regulations, and features a metallic lithium content of at least 98 percent. It expands the use of lithium beyond the cathode by introducing a lithium source to the anode, providing an increase in energy density, improvements in safety and calendar life, and cost reductions.

To make more batteries, and better batteries, we will need more lithium. FMC is in the midst of a 30 percent expansion of lithium capacity. We aim to double our carbonate production by the end of the decade and substantially increase our market-leading lithium hydroxide and chloride capacities as well.

Lithium Also Propels Other Markets

Increased lithium sources and lithium-ion technology allows FMC to expand its business in other significant markets, too, such as large-format batteries for additional forms of electric transportation, electric grid storage and back-up systems, not to mention military and space applications. Increased lithium supplies and new technology will also help FMC sustain its growth in high-value markets such as pharmaceuticals and automobile tires.

From the remote, arid regions of the Andes Mountains to the crowded expressways half a world away, FMC’s sustainability efforts surrounding lithium are having a lasting, positive effect on life on this planet. The cumulative impact over time – of cleaner air, reduced concerns about a warming planet, less reliance on energy from hostile sources and many other related benefits – makes the quest for a better EV solution well worth the journey.

Energized?

Do you have comments or ideas on sustainability for FMC? Please share them at sustainability.info@fmc.com.

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Members of our CLEAR Lab team are exploring and expanding the technology base for lithium-driven batteries.