Innovations in Battery Technology, the Silent Powerhouse of eMobility

Figures from the International Energy Agency (IEA) show that EV battery demand hit over 750 GWh in 2023, a 40% increase from 2022 levels. In the Middle East, the battery market was valued at $8.03 billion in 2022. It is expected to hit $26.47 billion by 2030.

As the demand for electric vehicles (EVs) increases, so does the demand for batteries. Batteries serve as EVs’ energy storage and are considered the silent powerhouse of the eMobility sector.  
This underscores how important they are in the overall energy transition picture.

Figures from the International Energy Agency (IEA) show that EV battery demand hit over 750 GWh in 2023, a 40% increase from 2022 levels. In the Middle East, the battery market was valued at $8.03 billion in 2022. It is expected to hit $26.47 billion by 2030.

Battery concerns

Batteries are limited by nature. And it presents a huge concern for consumers. 

According to the World Economic Forum, range anxiety — which revolves around how far an EV can travel on a single charge—is one big barrier to EV adoption. Charging limitations compound this anxiety. 

A recent EY report noted that global demand for EVs slowed, with 27% of prospective buyers citing a lack of charging infrastructure as their main concern. Another 26% of potential buyers also mentioned the high cost of battery replacement.

To overcome these challenges, ongoing innovations in battery technology are crucial. 

Over the past decade, the average range of EVs has more than doubled, from 138 km (86 miles) in 2011 to 349 km (217 miles) in 2021. However, this still pales in comparison to the 665 km (413 miles) achievable by an average fossil-fueled car.

Innovations in battery technology

Most EVs use lithium-ion batteries, which consist of cells with positive (cathode) and negative (anode) electrodes separated by a liquid electrolyte. 

Solid-state batteries are another type of battery used in EVs. Instead of having a liquid electrolyte, they use solid electrolytes. They offer higher energy density, improved safety, and faster charging. However, they are currently expensive to produce.

Sodium-ion batteries, which use sodium instead of lithium, are a more affordable alternative to lithium-ion batteries. Although they have a lower energy density, sodium-ion batteries are more abundant and cost-effective.

Emerging battery technologies show promise. 

Carbon nanotube electrodes, for example, offer high electrical conductivity, mechanical strength, and large surface area. These characteristics help enhance battery performance, boost storage capacity, speed up charging rates, and extend battery lifespan compared to traditional electrodes.

Meanwhile, cobalt-free batteries aim to reduce or eliminate cobalt use while maintaining or enhancing performance. By exploring alternative cathode materials like nickel-rich chemistries, these batteries can achieve higher energy density and lower costs.

Hybrid capacitor batteries are also on the rise. They combine the features of traditional lithium-ion batteries and capacitors, providing high power density and the ability to charge and discharge rapidly. 

Aiming for a circular battery value chain

Indeed, battery technology is crucial in decarbonising the transport sector and supporting the broader energy transition. According to a WEF report, in transport alone, batteries are expected to avoid 0.4 gigatons (Gt) of CO2 emissions by 2030.

To advance this transformation, the WEF has formed the Global Battery Alliance, which brings together 42 manufacturers, raw materials producers, and other stakeholders. This alliance aims to create a sustainable battery supply chain by 2030, which could significantly reduce greenhouse gas emissions from batteries. 

The Global Battery Alliance has since proposed several actions.

These include implementing systems for extending battery life and end-of-life treatment, such as repair, refurbishment, and recycling. They also recommended rolling out a “battery passport” that could help track batteries' life cycles.

Another key strategy involves expanding vehicle-to-grid (V2G) and vehicle-to-load (V1G) technologies, which allow EV batteries to supply energy back to the grid.

Saudi Arabia’s efforts

In Saudi Arabia, the government is keen to position the country as a key player in the EV battery supply chain. In fact, its Public Investment Fund (PIF) has already allocated $182 million to boost mineral production and reduce risks in new mining projects. 

Recent estimates show that the country’s mineral resources amount to about $2.5 trillion, nearly double the previous valuation. To leverage these resources, Saudi Arabia has developed new mining sites and granted over 30 exploration licenses to foreign investors for 2024. 

Additionally, the kingdom is expanding its mid- and downstream capabilities. Notable initiatives include a lithium processing agreement with EV Metals Group and a graphite anode materials facility in partnership with Novonix to support EV and energy storage systems in the Middle East and North Africa.