How Sweden can become a leading battery nation

As the transition to a fossil-free society continues, the need for batteries is growing. The transition is being driven by programmes such as the EU's Fit for 55, the US's Inflation Reduction Act and the EU's ban on the sale of new combustion engine cars in 2035, as well as rapid technology and market development in China. In a report from 2023, McKinsey predicts that demand for lithium-ion batteries will grow from 700 gigawatts in 2022 to 4.7 terrawatts in 2030.

Sweden is already well placed to take a leading position in the battery sector; we have access to renewable energy, well-developed infrastructure, industry and innovation systems.

"But for development to take off, other areas also need to be developed and strengthened," says Dina Dedic, researcher and programme manager for batteries at RISE. "We need to see developments in everything from securing critical raw materials and cell development to optimising performance, safety and battery recycling. And we need to ensure that we have the right skills across the value chain.

Securing access to sustainable battery raw materials

Today, Sweden - like the rest of the EU - is largely dependent on raw materials and technology from just a few countries. The EU's Critical Raw Materials Act, which was introduced last spring, is one way of securing the supply of critical raw materials in a sustainable way. But more use of recycled raw materials is also needed.

"We need incentives for circularity and recycling," says Dina Dedic. This is for environmental and sustainability reasons, but also because the supply of lithium, cobalt, manganese and rare earth elements is limited.

Today, only a few countries mine and refine key battery materials such as lithium, nickel, manganese and cobalt. Mining is often associated with environmental and social impacts, while supply is limited. Much of the focus is therefore on developing new technologies, such as sodium-based cell chemistries, and recycling critical metals and minerals, although it is unclear how recycling will take place as the material value is lower. Batteries also contain materials derived from fossil fuels. In order to reduce the CO2 footprint, more of these materials need to come from bio-based or renewable sources.

"Electric car batteries last longer than the cars themselves. Throwing away old batteries is a huge waste. They should be reused or recycled. The EU is also tightening requirements on the amount of recycled material used in the production of new batteries."

Inspired by the forestry industry

The battery industry in Sweden will also have to work hard on industrial optimisation, reviewing all parts of the business to reduce waste and cut costs.

"A few changes can go a long way. Look at the forestry industry, which has been working on optimisation for many years. They have managed to create value from by-products, both in terms of energy and materials.

Even the batteries themselves need to be optimised - for their intended use.

"There is a difference between storing energy in cars - which need to be charged quickly, weigh little and provide a lot of acceleration power - and storing energy from solar power. We can also expect completely new requirements for batteries to emerge in the future as new applications develop. To ensure performance and safety, batteries need to be tested to understand when and why problems may occur. There is a lot that can be done to optimise batteries, from cell manufacturing, packs and modules, battery management systems to their actual use," says Dina Dedic.

Investment in training needed

Another problem is the lack of adequate training in large parts of the value chain, making it difficult for industry across Europe to find the right skills.

"There needs to be a major shift from vocational training to research and innovation. This is a prerequisite for building the infrastructure needed for electrification, which includes everything from electricity supply and training to policies and permitting processes.

RISE - a common arena

A major challenge for the Swedish industry today is the lack of a common arena where the industry can share information and costs.

"Many technical challenges are generic and affect most people who produce batteries or use them in their products," says Dina Dedic. "There is a lot to gain for the industry by working together. It could lead to entirely new business areas as society becomes more electrified.

RISE works with the entire battery value chain, from raw materials to recycling or reuse, and participates in research and development projects to develop knowledge in areas such as battery testing, battery materials and battery manufacturing.

"We provide training, including in battery safety, and support for safety-critical battery and electrification testing. We have world-leading battery testing and demonstration environments in the form of our Safety Critical Testing Laboratory and SEEL (Swedish Electric Transport Lab)," says Dina Dedic.

As an independent research institute with technical expertise, test facilities and strong stakeholder networks, RISE can become the arena where the battery industry in Sweden and Europe can be developed and strengthened.

"Entrepreneurs will come if there is potential in the market, but with the support of a common arena they can succeed better and faster."

Develop competitive battery technologies

Dina Dedic's best advice to entrepreneurs in a burgeoning Swedish industry of the future is to identify and develop technologies in niche applications, as well as technologies that are simply better and more competitively priced than those that can be sourced from outside Europe. She also urges patience.

"Today, China is subsidising electric cars and batteries to give its domestic industry a competitive edge. This can't go on forever, and whoever can weather the storm will be the winner," she says.