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The information in this presentation has been prepared by Companhia Brasileira de Metalurgia e Mineração jointly with its subsidiaries

(together hereinafter “CBMM”) for information purposes only and solely with the only purposes of introducing the company’s activities in

2018. This document and its contents are confidential and are being provided to you solely for your information and may not be

reproduced, retransmitted, downloaded, posted, displayed, modified, reused, broadcast, transmitted or further distributed to any other

person or published, in whole or in part, by any medium or in any form for any purpose. The opinions presented herein are based on

information gathered at the time of writing and are subject to change without notice. CBMM relies on information obtained from sources

believed to be reliable but does not guarantee its accuracy or completeness. This presentation may contain certain forward-looking

statements and information relating to CBMM that reflect the current views and/or expectations of the CBMM and its management with

respect to its performance, business and future events. Forward-looking statements include, without limitation, any statement that may

predict, forecast, indicate or imply future results, performance or achievements, and may contain words like “believe”, “anticipate”,

“expect”, “envisages”, “will likely result”, or any other words or phrases of similar meaning. Such statements are subject to a number of

risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual outcomes to differ materially

from the plans, objectives, expectations, estimates and intentions expressed in this presentation. The copyrights and other intellectual

property rights (such as design rights, trademarks, patents, among others) in any material contained in this presentation and copies

thereof belong to CBMM or used under authorized license by CBMM. In any event, neither CBMM nor any of its affiliates, directors,

officers, shareholders, agents or employees are or will be liable to any third party for any investment or business decision made or action

taken in reliance on the information and statements contained in this presentation or for any for any damages, losses, expenses or costs

whatsoever (including without limitation, any direct, indirect, special, incidental or consequential damages, loss of profits or loss

opportunity) arising in connection with your reliance on any information at this presentation, even if CBMM has been advised as to the

possibility of such damages. You should therefore verify the information contained in this presentation before you act upon it. The

information contained in this presentation has not been independently verified. This presentation and its contents are proprietary

information. CBMM’s names and logos and all related trademarks, trade names, and other intellectual property are the property of CBMM

and cannot be used without its express prior written permission.

Contents

• Introduction to Lithium Ion batteries (LIBs)

• How does Niobium work in LIBs?

• Niobium applications

• Conclusion

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The electrification imperative

• Reducing emissions from transport is an

imperative

• Yet, on average, OEMs have reduced

emissions by 2.9% p.a. since 2010

compared to 5.3% p.a. required to avoid

financial penalties*

• Total emissions from transport are now

growing relative to other sources

• Dramatic change is needed to cleaner

forms of mobility

• EVs powered by LIBs are one of the best

options for achieving this

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* CDP, 2018

USA: Transport is the largest

source of emissions

Source: EIA Annual Energy review

What are LIBs?

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• LIBs convert stored chemical energy into electricity

• Chemical energy stored in form of Lithium ions,

which move back and forth from Anode (-) to Cathode

(+) electrodes releasing electricity (e- flow) to an

external circuit, in a continuous cycle of charge and

discharge

• LIBs use transition mixed metal oxides of Cobalt,

Nickel, Manganese, Iron, Phosphorous and

Aluminium in cathode materials

• Graphite and mixed oxides based on Lithium and

Titanium are the main components used in anode

materials

• Niobium is increasingly being applied in the

composition of LIB materials to meet the increasing

demand for higher performance, longer-life, and

safer batteries

Why is Niobium important for LIB development?

Niobium addresses

almost all of the

major barriers to

EV adoption

How does Niobium work in LIBs?

Niobium improves electronic conductivity

• Conductivity is one of the main barriers to

improving LIBs - Controls the speed with which electricity is transferred to and

from battery

- Important for ensuring stable, long term battery performance

• Adding small amounts of Niobium can make Lithium

Iron Phosphate (LFP) cathodes 1,000,000,000x

more conductive

• Delivering important benefits to EVs - More responsive delivery of electric current

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Source: Chung, Bloking and Chiang Electronically conductive phospho-olivines as lithium storage electrodes Nature Materials, 2002

Increased rate capability and ionic conductivity

• Improving charging/discharging rates is vital

• But as rate increases the amount of electrical

charge stored generally falls

• But coating cathodes with Lithium Niobate

(LiNbO3) increases the rate without reducing

capacity

• This creates a battery which releases more

electricity at a faster rate, with greater

efficiency

• It also improves battery longevity and safety

by - Enabling the battery to withstand more charging cycles

- Preventing dissolution of the Manganese

- Lowering charge-transfer resistance

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Zhang et al. Enhancing the High Rate Capability and Cycling Stability of LiMn2O4 by Coating of Solid-State Electrolyte LiNbO3ACS Appl Material Interfaces, 2014

Greater energy density

• Lithium is used in batteries because it is light and

has a high charge and power-to-weight ratio

• Therefore batteries with more Lithium can store

more energy

• A new cathode material with a disordered

structure containing Niobium can increase

Lithium ions by 30 to 50%

• Therefore enables greater energy capacity - > 250 mAh.g-1 capacity higher than typical ones

• Tests show performance of this electrolyte is

close to pure Lithium

• Higher energy density can increase the range and

performance of EVs

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Yabuuchi et al High-capacity electrode materials for rechargeable lithium batteries: Li3NbO4-based system with cation-disordered rocksalt structure Proceedings of National Academy of Science, 2015

Faster charging

• New Niobium materials being developed

for battery anodes that improve the

mobility of Lithium ions

• By creating “spaces” in the anode

material Lithium ions can easily move in

and out of the anode

• Creates a very high charge/discharge rate

• Used with Titanium to create Titanium

Niobium Oxides - TNO - New class of anode materials with approximately

3x the amount of energy storage as traditional LIBs

• This technology could reduce charging

times significantly

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Griffith, Forse, Griffin, and Grey High-Rate Intercalation without Nanostructuring in Metastable Nb2O5 Bronze Phases Journal of the American Chemical Society, 2016

Safety

• As LIBs age there is a risk of short circuits

occurring that result in fires

• Caused by formation of Lithium metal

which come into contact with the cathode

creating heat

• Has been cause of some significant product

recalls for major manufacturers

• Niobium prevents the Lithium metal from

forming so removing the risk of short

circuits

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University of Oxford Energy and Power Group http://epg.eng.ox.ac.uk/content/degradation-lithium-ion-batteries

Niobium application: Toshiba SCiBTM Battery with TNO Anode

TNO Anode benefits:

- Ultra-rapid charge – 6 min;

- Double energy density capacity

- Extended driving range – 320 km

- Volumetric energy density higher than graphite

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Source: http:/www.Toshiba.co.jp/about/press2017_10/pr0301.htm?from=RSS_PRESS&uid=20171003-5177e

Prototype of 50Ah next-generation SCiBTM

111mm x 194mm x 14.5mm

Case study: Advantages of TNO LIB

Anode Comparison

Graphite LTO~LLTO TNO

Capacity 372 175 388

Voltage 0.1

1.5 1.6

Density 2.3 3.5 4.3

Safety -- ++ ++

Charging rate -- ++ ++

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Source: CBMM

Performance analysis: Green (better), Red (worse)

Titanium Niobate (TNO)

Specific energy

Performance

Safety Life span

Specific power Cost

Nb based anode

Trade-offs among the main LIB Technologies

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Source: The Boston Consulting Group, 2010 / CBMM internal records for TNO

Lithium-Nickel-Cobalt-Aluminium (NCA)

Specific energy

Performance

Safety Life span

Specific power Cost

Lithium-Nickel-Manganese-Cobalt (NMC)

Specific energy

Performance

Safety Life span

Specific power Cost

Lithium-Manganese Spinel (LMO)

Specific energy

Performance

Safety Life span

Specific power Cost

Lithium-Iron Phosphate (LFP)

Specific energy

Performance

Safety Life span

Specific power Cost

Lithium-Titanate (LTO)

Specific energy

Performance

Safety Life span

Specific power Cost

Titanium Niobate (TNO)

Specific energy

Performance

Safety Life span

Specific power Cost

Conclusion: Niobium’s benefits for LIB

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