373

Million Dollars

in average revenue between 2018-2020

14686

Metric Tons

of battery-grade lithium mined in 2020

18.22%

CAGR

in revenue from lithium hydroxide between 2016 - 2020

View Our Analysis

The Path to Drawdown: Batteries for Electric Vehicles

The first electric vehicle (EV) prototype was built in the early 19th century, but internal combustion engines dominated the automotive landscape since the 1920s because of EVs’ inability to overcome the challenge of building a lightweight, durable battery with adequate range.

Today, that landscape is changing. Because of supportive government policies and declining costs, there are millions of EVs on the road. The difference in their carbon footprint is remarkable. Compared to internal combustion engine vehicles, emissions drop by 50% if an EV’s power comes from the conventional electrical grid. If powered by solar energy, emissions are cut by 95%. And once households purchase EVs, costs to operate and maintain those cars are often cheaper than gas-based cars.

What used to be an obstacle for EVs - the question of how far the car can go on a single charge - is now much less of a concern. The average range of EVs produced in 2020 is about 217.5 miles, up from 124 miles in 2015.

What’s making this increase in mileage possible is the development in battery technology and growth in battery production capacity. The cost of batteries is falling fast as a result. The cost of lithium-ion batteries in particular - the key technology for electrifying transport - has declined sharply in recent years.

But battery production needs to continue scaling massively to keep up with the electrification of the transport sector. According to the IEA:

  • <::marker> Global manufacturing operations produced 170 GWh of batteries in 2020
  • <::marker> ~3,000 GWh battery production capacity is needed by 2030 to achieve long-term sustainability goals
  • <::marker> That’s CAGR of 33.25%

What We Want to See Improve

Direct Greater Focus to Lithium Hydroxide

As Livent makes clear in its investor presentation (pp. 12-13), the continued EV market growth in the next decade will be increasingly driven by lithium hydroxide. Currently, 55% of Livent’s revenue comes from selling lithium hydroxide. We want Livent to direct even more effort to producing lithium hydroxide so that it can lead the EV market growth.

Switch to Renewable Energy

Livent’s Argentine operations rely (pp. 10-11) on natural gas and energy generated by natural gas and diesel. We urge these operations to switch completely to renewable sources of energy.

Report Scope 3 Emissions

We applaud Livent’s sustainability targets and comprehensive ESG reports. But it doesn’t yet track and public its scope 3 emissions. For a company that has mining and production operations across multiple countries, we need to know its indirect CO2e emissions and want to see these emissions reduced. As part of its effort to provide greater ESG transparency, we urge Livent to report their scope 3 emissions.

Related Battery Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

0.78%

QuantumScape Corporation (QS)

QuantumScape makes solid-state lithium-ion batteries for electric vehicles. Their battery is lighter and charges faster, key to making EVs more attractive

0.30%

Livent Corporation (LTHM)

Livent is one of the largest lithium producers in the world. Lithium is the key metal in making batteries for electric vehicles and energy storage.

0.19%

Stem, Inc. (STEM)

Stem makes energy storage solutions that optimize energy use through the use of AI. Energy storage is the key to integrating more renewables into the grid

0.03%

Eos Energy Enterprises, Inc. (EOSE)

Eos makes stationary batteries and energy storage systems that can make renewable power more reliable and attractive

0.03%

Romeo Power, Inc. (RMO)

Romeo Power makes lithium-ion battery modules and packs for commercial EVs. High-quality batteries are critical for electrifying transportation

0.02%

CBAK Energy Technology, Inc. (CBAT)

CBAK makes lithium-ion battery packs that can be used in many electric vehicles, tools and energy storage applications, a key to electrifying everything

0.02%

Flux Power Holdings, Inc (FLUX)

Flux Power makes batteries for industrial forklifts and other utility vehicles. Electrifying these vehicles is a key component of solving climate change.

0.02%

Kandi Technologies Group Inc. (KNDI)

Kandi Technologies mass produces entry-level EVs for Chinese consumers and quickly swaps EV batteries. Both are critical for making EVs attractive.

0.02%

KULR Technology Group, Inc. (KULR)

KULR sells thermal management technologies that are used in the lithium-ion batteries to ensure they stay within safe operating temperatures.

0.02%

Westwater Resources, Inc. (WWR)

Westwater Resources mines and purified graphite materials, which is a key component in battery construction. They’re helping expand energy storage

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