Battery BLUprint

Innovation & Investment Outlook

August 2023

1
Contents
Part 1: Battery Basics and Types

Part 2: Battery Costs, Structure & Metrics

Part 3: Energy Storage is the Fulcrum of a Net Zero Future

Part 4: Value Chain: Mining to Manufacturing to Recycling

Part 5: Blume’s #BatteryBLUprint Framework

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Disclaimer
This research study contains the work-product of the authors listed, and the information in this report is on the basis of publicly available information;
internal data and other sources believed to be true and are for general guidance only but which may have not been verified independently. While every
effort is made to ensure the accuracy and completeness of information contained, the company takes no responsibility and assumes no liability for any
error/ omission or accuracy of the information. Recipients of this material should rely on their own judgments and conclusions from relevant sources
before making any decision. In case there are some due citations missing, corrections will be made upon bringing this to the authors’ notice.
All registered trademarks belong to their respective owners. No trademark infringements are intended.
All representative images have used under Creative Commons licence.
This study is the personal opinion of the authors listed on this slide, and does not represent the view of Blume Venture Advisors Pvt Ltd, its partners,
affiliates, or portfolio companies.
None can use the report as a base for any claim, demand or cause of action and, also none is responsible for any loss incurred based upon. Views are not
binding on any authority, regulatory or court and hence no assurance is given that any contrary provision to the views expressed herein will not be
asserted by any regulatory authority or sustained by any court of law.
This study does not purport to provide comprehensive information on any topic therein. This is a strategy document intended to serve as a discussion
guide, and not a legal document.
This document does not intend to attract or invite investments in any securities, equities, or species thereof. Opinion, projections and estimates are
subject to change without notice.
All rights reserved.
All disputes to be resolved in courts in the jurisdiction of Mumbai, India.

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Acknowledgements
This research study has been made possible by the immense contributions of
Sankalp Bose and Mrigi Munjal.

Arpit Agrawal and Venkatesh Modi provided insights from their work on EVs in the
EV Primer, from which this BLUprint inherits many insights.

Many academic and industry experts from the sector were consulted during the
preparation of this BLUprint. We thank them individually and en bloc for their
guidance and insights.

However, any/all errors, omissions and inaccuracies are the sole responsibility of the
lead author.

All rights reserved.

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Part 1:
Battery Basics

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What is a Cell?

A cell is a device which converts chemical energy to

electrical energy and vice versa. It consists of two
electrodes, a positive electrode called the cathode
and a negative electrode called the anode, immersed
in an electrolyte solution separated by a separator.
The electrodes are made of different materials, and
their chemical reactions generate a flow of electrons.

During a discharging cycle, electrons flow from the

anode to the cathode and the opposite occurs during
a charging cycle.

This flow of electrons between the electrodes can be

used as a way to store energy over multiple
charge-discharge cycles.

A battery is a combination of cells connected in

series, parallel, or a combination of both to achieve
the desired voltage and capacity. Sometimes
“battery” is used interchangeably with “cell”.
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Cell vs Battery

A cell is a device which converts chemical A battery is a collection of cells

energy to electrical energy and vice versa

Primary Battery

Battery

Secondary Battery

Dry Cell

Wet Cell

Cell

Reserve Cell

Fuel Cell
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Types of Batteries
Primary Batteries: Non-Rechargeable Single Use Batteries

Alkaline Battery Aluminium-air Battery Lithium Coin Cell Battery

Secondary Batteries: Rechargeable Multiple Use Batteries

Li-ion Battery Lead-Acid Battery Ni-MH Battery Na-Ion Battery

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Making Sense of the Jargon… 1/2

Cycle Life
Cycle life refers to the number of complete charge and discharge cycles that a battery can undergo
before its performance deteriorates significantly. It represents the lifespan of a battery.

Specific Energy/Power
Specific energy (Wh/kg) refers to the amount of energy that can be stored in a battery per unit mass.
Specific power (W/kg), on the other hand, refers to the rate at which a battery can deliver energy per unit mass.

Energy/Power Density (Volumetric and Gravimetric)

Volumetric Energy Density (Wh/L) is the nominal battery energy per unit volume, sometimes referred
to as the volumetric energy density. Whereas, Gravimetric Energy Density is the same as Specific
Energy (Wh/kg).
And similarly for Power (W/L or W/kg)

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Making Sense of the Jargon… 2/2

C-Rate
A C-rate is a measure of the rate at which a battery is discharged relative to its maximum capacity. A 1C rate
means that the discharge current will discharge the entire battery in 1 hour.

State of Charge (SOC%)

State of charge (SOC) % refers to the amount of energy remaining in a battery as a percentage of its
total capacity. It provides an indication of how much energy is available in the battery at a given time.

Depth of Discharge (DoD)

Depth of discharge (DoD) refers to the extent to which a battery has been discharged relative to its
total capacity. It is expressed as a percentage and indicates the amount of energy that has been
drawn from the battery.

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 Geometries of Cells

Cylindrical Cells Pouch Cells Prismatic Cells Button Cells

PROS PROS PROS PROS

1. Robust & Durable 1. High Energy Density 1. Space efficient design 1. Long shelf life
2. Higher heat dissipation 2. Design Flexibility 2. Enhanced stability & safety 2. Compact & Lightweight

CONS CONS CONS CONS

1. Limited design flexibility 1. Vulnerability to physical damage 1. Limited design flexibility 1. Limited energy capacity
2. Lower packing efficiency 2. Limited thermal stability 2. Poor heat dissipation 2. Limited current output

The 18650 & 21700 cells General Motors, Hyundai and Panasonic, Samsung & LG use Button cells are used for
popularly used by Tesla are Ford use pouch cells in their prismatic cells in several testing chemistries at the lab
cylindrical EVs laptops scale

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Evolution of Batteries

Lead-Acid Battery, the oldest form of

1859 rechargeable battery was invented Battery Type Pros Cons Applications

Li-Ion High Energy High Cost Laptops, smartphones, electric

Density vehicles, drones, cameras
First dry cell, Leclanche battery made of
1866 Zinc-Carbon was manufactured

Ni-Cd Long Cycle Life Limited Power tools, emergency

Voltage lighting
First alkaline battery with higher energy
1899 density, the Ni-Cd battery was invented Ni-MH High Current High Self Hybrid vehicles, portable
Output Discharge electronics

Na-Ion Low Cost Lower Energy Grid energy storage,

Alkaline batteries replace Zn-C batteries
1960s supplying greater energy at high current
Density renewable energy systems

Lead Acid High Power Toxic Automotive batteries, UPS

Output Materials systems, backup power
The first Li-ion battery prototype was
1991 commercialized by Sony Aluminium Lightweight Limited Cycle Electric vehicles, energy
Air Life storage, portable electronics

Dry Cell Long Shelf Life Non Flashlights, remote controls,

Rechargeable portable devices
2020s What’s next?

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Energy density & cycle lives of batteries vary by orders of magnitude…

Energy Density vs Cell Type Cycle Life vs Cell Type

Source:Link

Source:Link

Lithium Ion Polymer has the Nickel Cadmium Batteries have

highest energy density across cell types significantly higher cycle life across cell types

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Why Lithium Ion Batteries are currently the standard…

Higher Energy Density

Lightweight & Longer Life

Lower Self-Discharge & Faster Charge

Low Maintenance & High Safety

$48B 16%
Market Size of Expected CAGR of
Lithium-Ion Batteries in Lithium-Ion Battery
2023 Market (2022-2030) Source: Link

$151/kWh 75% 1.5-2% 500-1000 240 Wh/Kg

Self Discharge rate of Average Life Cycles of Average Energy Density
Average Lithium-Ion Li-Ion Batteries are
Lithium-Ion Lithium-Ion Batteries of Lithium-Ion Batteries
Battery Pack Cost manufactured in China
Batteries/month for 50% DoD at Cell Level

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 Lithium Ion Batteries also have many types of ‘Chemistries’...
Lithium Cobalt Oxide (LCO) Radar Comparison Chart

Lithium Manganese Oxide (LMO)

Effectiveness

Nickel Manganese Cobalt (NMC)

Lithium Ion
Batteries Nickel Cobalt Aluminium (NCA)

Lithium Iron Phosphate (LFP)

Lithium Titanate (LTO) Anode Material

Source:Link

Data as of 2022*
Source:Link 15
Use-Cases in EVs for various Lithium-Ion Chemistries

Anode || Cathode Current user of Chemistry

Graphite || NCA Tesla Model S/Model X

LTO || NMC Honda Fit (US)

Graphite || NMC - LMO Fiat 500

Graphite || LFP Renault Zoe/BYD e6/Coda EV

Graphite || LMO-NMC Mitsubishi / i-MiEV

Graphite || NMC BMW i3/Chevrolet Bolt

Graphite || LMO - NCA Nissan Leaf

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The 18650 vs 21700 terminology

In 1990, Sony In 2017, Tesla & Panasonic jointly

launched the 18650 cell launched the 21700 cell

Energy
Type Size Capacity Weight Cost
Density

Diameter 18mm
2200-3600 250Wh/Kg
18650 mAh
45-48g
Tesla
185$/KWh
Length 65mm

Diameter 21mm
3000-4800 300Wh/Kg
21700 mAh
60-665g
Tesla
170$/KWh
Length 70 mm

Source:Link

Tesla Model S launched in Tesla Model 3 launched in

2012 uses 18650 Cells 2017 uses 21700 Cells

The 0 at the end of the battery designation denotes a cylindrical cell 17

 What type of batteries does Tesla use?

Cathode Chemistries Used Main Suppliers

Cylindrical Lithium
Ion Cells

Nickel Cobalt Aluminium (NCA)

World’s fastest
charging network
Nickel-cobalt-manganese (NCM)

Model S has a range

of 370 miles
Lithium Iron Phosphate (LFP)

Tesla 4680 Battery

Cathode Type NCM

Size
Anode Type Graphite

Nickel Content 81.6% Energy Capacity

Energy Density 272-296 Wh/kg (estimated)

Total Capacity 9,000 mAh (estimated) Charging Efficiency

Total Energy 96-99 Wh (estimated)

Internal Resistance
Tabbed or Tabless? Tabless
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Part 2:
Battery Costs,
Structure & Metrics

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 Cell Cost Structure - Ballpark

Cost Breakdown of a Li-Ion Battery

The cathode costs account for

almost half of the cost of a
battery

Variations in last 3 years

have changed
percentages substantially

Source: Link
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Lithium Costs are falling as rapidly as Solar in the 2010s

The upward cost pressure on batteries outpaced the higher adoption of

lower cost chemistries like lithium iron phosphate (LFP).

Source: Link Source:Link

97% 19% -$51/kWh +$1/kWh

Decline in Li-Ion battery Average drop in price for Expected drop in prices Expected increase in
prices in the last 3 every doubling in in Li-Ion batteries prices in Li-Ion batteries
decades capacity (2022-2026) (2022-2023)
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LFP will dominate the Indian market in upcoming years…

The share of LFPs is expected to increase

Li-Ion Batteries capacity addition is
during this growth period especially in a
increasing rapidly in India price sensitive economy like India

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 LFPs are getting a boost because of cheaper raw material

LFP has shown resilient raw material

costs due to more earth abundant
composition requirements

Source: Fast Markets

Materials costs will continue to

become a higher proportion of overall
cell costs as others costs come down
through improved learning rates

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 Important benchmarks for different types of EVs
2W EVs 4W EVs
Chemistry
Li-Ion batteries are
used. LFP is used in
Chemistry higher-end models
Chemistry
Li-Ion batteries are NCA & NMC Li-Ion
used. Higher-end batteries are used
models use LFP & Capacity Range with higher energy
NMC There are short-range density & cycle life
Capacity generally & long-range options.
ranges between 60 kWh batteries run Capacity Range
Capacity Range 40-100 kWh for 200-250 miles
Range varies with
Capacity generally
Capacity generally A 2W can travel ranges between options.
ranges between 1-5 between 48-80 km 100-500 kWh 300 kWh batteries run
kWh on a single charge for 150-200 miles

Chemistry
Li-Ion batteries are
3W EVs used. LFP is used in 4W Buses
higher-end models

Charging Time Capacity Range Cycle Life

Battery generally lasts for 8-12 years
Time taken to full charge on average is 3-5 hours Capacity generally Designed to travel
ranges between 2-10 between 60-150 km
kWh on a single charge

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Part 3:
Energy Storage is the
Fulcrum of a Net-Zero Future
Where does the demand for Stationary Storage in India come from?

Stationary Energy Storage Requirement in India Energy Arbitrage

(2019-2023) Bulk Energy

Peak Shaving

Load Following

Spinning Reserve
Ancillary
Services Voltage Support
BESS
Applications Black Start

Frequency Regulation

Customer Power Quality

Energy
Management Power Reliability

Renewable Time Shifting

Energy
Integration Capacity Firming
Source: Link
Source: Link
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Battery Demand projection for the medium term:
Renewable energy penetration expansion
2030

2023

~54 GWh
4x increas
e, driven b 232.7 GWh
grid-conne y
cted storag (1710 GWh from Source: Link, NITI
e
2027-2032) Aayog estimates 27
Part 4:
Battery Value Chain:
Mining to Manufacturing to Recycling

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 The Battery Manufacturing Value Chain

Raw Material Refining & Cell Components Cell & Pack

Manufacturing
Use Recycling
Sourcing Processing Assembly

Refining of metals
Involves
to convert into All individual
Sourcing raw
compounds In this step, key components A new addition
materials mined
suitable for components are assembled to the value
around the Refers to the
batteries. such as together along chain with
world such as use of battery
Lithium is Cathode, with the BMS increasingly
Lithium, Nickel, till end of life
converted to Anode, etc are to form a crucial
Cobalt for
Lithium Hydroxide manufactured market ready significance
Lithium-Ion
& Lithium battery
Cells
Carbonate

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Cell Manufacturer Value Chain

Procurement of the raw materials and

investment into technology are the most
important inputs

The pace at which the technology is

advancing and the amount of money that
is required in R&D to be able to get the
right chemistry is challenging

The cost to put up a factory of 1 GWh

output is in the range of $80-150M, with
PLI schemes 4-5 consortiums are
emerging in India

Outputs of the cell manufacturers feeds

into battery assembler and OEMs (who
may want to assemble their own
batteries)
Source:Link

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 Is Lithium the new Oil, and not Data?

Lithium Cost is a fraction of the Cathode’s cost Broad Geographic Distribution of Raw Material Reserves

Source: Link

Source: US Geological Survey (USGS), 2019

Lithium Nickel Cobalt

Lithium is controlled by Global Nickel supply is fragmented between 60% of Global Cobalt is mined in
Australia, Chile & Argentina Brazil, Indonesia, Australia. Democratic Republic of Congo.
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 Lithium Cell Raw Material - costs by materials

CATHODE

5-10% <1%
<1% MANGANESE NICKEL 20-25%

10-15% COBALT
20% of world’s ores are
IRON 5-10%
Total reserves amount to
found in India. Total
193M tonnes present
reserves amount to
LITHIUM India imports 100% of majorly in Orissa (93%) India has abundant iron PHOSPHATE
around 167M tonnes
Cobalt demands. ore, around 18,000M
Reports state 44.9M tonnes of Haematite &
tonnes of untapped 10,500M tonnes of
India imports 100% of potential Magnetite India is deficient in
Lithium demands
Apatite reserves (24M
14,100 tonnes of Lithium
tonnes) & Rock
reserves found in
Phosphate (48M tonnes)
Karnataka ANODE ELECTROLYTE

GRAPHITE FLUORSPAR
: %Total Cost of
Lithium Battery
India has graphite reserves of 11M Total Fluorite reserves in India are
tonnes & resources worth 158M around 17.9M tonnes. Gujarat
tonnes. There are 3 main graphite accounts for 66%, followed by
belts, present in Andhra Pradesh & Rajasthan at 29%
Orissa Source: Link 32
China dominates the global value chain…

75% 80%
World’s refining capabilities are controlled
Li-Ion Batteries are manufactured in China
by China

64% 70% | 80%

World’s production capacity for cathode &
World’s graphite is produced by China
anodes respectively lies in China

Source: Link

Ganfeng & Tianqi Lithium are CATL & BYD are Chinese
China is the China is projected to be the top
Chinese companies Companies that control 32% of
largest importer of Lithium in producer of Batteries till 2027 at
accounting for 26% share of the battery manufacturing
the world least
the lithium market market.
33
 …and the rest of the world is trying to catch up…
Figure 1: BNEF 2022 global lithium-ion battery supply chain ranking

Source: Link

● Russia was the world’s largest supplier of Class 1

battery-grade nickel (pre-conflict), producing around 20% of
global supply

● Europe is responsible for 25% of battery assembly facilities &

20% of Cobalt processing

● Korea is responsible for 15% of cathode production, Japan for

14% of cathode & 11% of anode, while USA produces 7% of
world’s battery production

Source: bloombergNEF. Note: “lll” stands for infrastructure, innovation and industry. Source: Link 34
Battery Recycling Value Chain (more details in Blume’s EV Primer)

Mechanical Processing Hydrometallurgical

Process

Physical methods such as crushing and sieving etc. are Chemicals are used to dissolve the battery and extract
used to separate the different components of the battery the valuable metals. The dissolved metals are extracted
and extract the valuable metals and purified.

Simplest and inexpensive process, but not as effective More environmentally friendly but expensive

Pyrometallurgical
Pyrolysis Process Process

Thermal decomposition process used to break down Heat is used to break down the batteries and extract
organic materials into their constituent elements. valuable metals, in a furnace. The molten metals are
collected and refined.
Used to recycle batteries by breaking down the plastic
and electrolyte components. Most commonly used process

Pre Treatment Treatment Source: Link

35
 What does the recycling market look like?

95% 90% 19.6% 50,000+

Tonnes of Lithium-Ion
Material can be recovered from Li-Ion Batteries are CAGR of Global
battery waste generated
Lithium Ion battery waste manufactured in China Recycling Industry
In India every year

Chemistry-wide analysis Indian Startups in the space

Source:Link

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Part 5:
Blume’s #BatteryBLUprint
A framework for investments beyond the
current Lithium-ion standard

37
 Blume’s #BatteryBLUprint is a venture investment approach to
evaluate technologies in the near-to-medium term

Blume’s #BatteryBLUprint for technologies

Performance Cost Ease of Transition

How well does it perform How much more or less does Can the technology leverage
compared to commercial it cost to make it compared to the manufacturing
Lithium-ion batteries/battery Lithium-ion batteries/battery knowledge and infrastructure
components? components? of commercial Li-ion
batteries?
We want to evaluate along We want to evaluate across
the following facets: the value chain for costs and We define “Degrees of
- Energy Density risks associated with: Disruption” to compare how
- Cycle Life - CAPEX different new technologies
- Safety - OPEX are from the incumbent
- International Import commercial scale
Risks technologies. These
“Degrees” are in indicator of
lab-to-market time.

38
Each technology shows promise on a different front

39
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Li-ion batteries from
spent li-ion
batteries Silicon Anode
Battery Redox Flow
Li-ion Polymer Batteries
Lithium Sulphur
Silicon-Carbon Batteries Aluminium-Air
Composite Anodes Batteries
Sodium-ion
Conventional Li-ion Nanophosphate Batteries Solid-state Batteries
Cell Technology

Ease of Transition
Based on similarity to conventional Li-ion cells and the current
knowledge, infrastructure and market they can capture 40
 3
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Conventional Li-ion
Cell

Ease of Transition
Based on similarity to conventional Li-ion cells and the current
knowledge, infrastructure and market they can capture 41
#BatteryBLUprint can beat technology and market risks

Reduced Technology Risks Reduced Market Risk

Matching disruption ease with Matching key performance
investment timeline helps mitigate metrics with market identification
technology risks. helps mitigate market risks.

Recognising Innovation White Spaces

Benchmarking across performance, cost and disruption ease helps in identifying where
innovation is required in the industry.

Most technologies do not show a big improvement in safety over Lithium-ion Batteries.

42
Upcoming technologies push the boundaries on all of these fronts

Si-C Composite anodes, Nanophosphate

cathodes, Silicon anodes, Lithium-sulphur
batteries, Solid-state batteries push for an
improved energy density.

Sodium-ion batteries and Aluminium-air

batteries push for a better cost effectiveness.

Redox flow batteries aim at a superior cycle life.

Sodium-ion batteries and redox flow batteries

also focus on higher safety.

43
 Prominent research labs and innovation hubs for disruptive Li-ion
alternatives

Europe

Universities
Jurgen Janek Asia

Universities
Germany (KI), Dirk Minggao Ouyang
Uwe Sauer Germany (Tshing-Hua)
(RWTH) Yang-Kook Sun (Hanyang)
Rui Xiong (Beijing Institute

Labs
Battery Energy of Technology)
Storage Laboratory
North America
Industry
Advanced Batteries

Industry Labs
Universities

StorageX (Stanford) Research Group (Chinese

Batteries Europe
Yet-Ming Chiang (MIT) India Academy of Sciences)
Jeff Dahn (Dalhousie) HTEM (IITB)
Ceder Group (Berkeley)

Universities
ABRL (IITD) 21C Lab (CATL)
CBEEV (IITM)
Shirley Meng (Argonne)
Labs

Jun Liu (PNNL) Lohum R&D (IITK)

Solid-state Ionic Lab (IITI)
Polaris Battery Labs

Industry
Raytheon Technologies E-Vega Mobility Labs
Industry

Joint Center for Energy Ola Battery Inno. Centre

Storage Research (JCESR)
Battery500 Consortium

Jianmin Ma et al 2021 J. Phys. D: Appl. Phys. 54 183001 44

Battery publications are rising exponentially! 44
There’s space for a lot more companies and innovators
(Indian Battery Market Revenues to Reach USD 27.70 billion by 2028: Estimates)

IN THE
NEWS
How this Nikhil
Kamath-Backed Battery
Tech Startup Is ‘Making
A Dent’ In The EV Space

45
Technologies evolve, but,
quality of founder team is the most critical.

46
 Thank you
For queries: [email protected]

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