4th Generation Car Lithium Ion Battery Commerce Essay

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

CalBattery Limited are working with Argonne National Laboratory to rapidly develop, produce and commercialise around the world, we are using a low cost silicon graphene composite anode material for lithium-ion batteries which are used in portable electronic devices, grid energy storage system and electric vehicles. Our company's mission is to become the world's leading developers and manufactures of the advanced, high performance, reliable and safe lithium-ion battery. Our primary focus is to serve the consumer electronics, power and transportation market in Europe and Asia.

We plan to manufacture and develop the silicon graphene material and high energy lithium-ion batteries in the UK based warehouse and increase the global production of our products as demanded. We dream of a centre of activity models for manufacturing and distribution, material production and assembly will be closer to our customers worldwide in order to reduce the cost of transportation.

We aim to target consumer electronics and the electric vehicle market, the consumer electronics market is most demanding for lithium-ion batteries, this market will be driven by the ambition for clean energy goals and regulations that is enforcing consumers to buy electric vehicles and use more renewable source. Energy storage including lithium based energy storage is expected to grow annually in the next decade due to the development of large amounts of variable renewable energy which is fed into the grid allowing the need for frequency regulation service to rise.

By storing cheaper energy at night to sell back to the consumers the next day, the high cost and difficulty in building power plants to meet the rising energy demands. Also to ensure that the users will have continuous access to power without any disruption therefore creating an expanding market for cost effective and scalable distributed energy storage system.

Our other application for our battery is a highly efficient power storage component for electric vehicles and hybrid vehicles. Current batteries used in electric cars are very expensive and ranges between thousands of pound for a battery system per vehicle. Our silicon graphene material enables the new lithium battery generation 4 to perform four times specific capacity which will cost up to less than 70% compared to the conventional batteries used in current hybrid vehicles to supply instant and superior power. [1]

1.1 Existing Products in the Market

Within the current market there are products such as lithium-ion generation 2 and 3. Within the market an example will be Hitachi who uses generation 2 and 3 they produce Lithium-ion batteries. They feel that is it important to use this in their products for automobiles such as Hybrid-electrical vehicle, electrical vehicles and plug in hybrid electric vehicle, they feel that their products are the growth of the environment.

From year 2005 Hitachi uses generation 2 for their Hybrid Electric Vehicle such as buses, trains, cars and trucks. This product is being used globally and the feedback given from their customers have mentioned that it is high quality and it is reliable as their products are based on long time operations within the commercial market. From this it can be seen that Lithium-ion is a very successful products that customers are using and is satisfied with the service they have with the type of vehicle they are driving. From this Hitachi has developed a generation 3 battery in 2010 where the production had begun. This was a successful product as many companies such as general motors, Toyota and Nissan used this generation battery for their hybrid vehicles. [2]

"It could get 50 miles per gallon on a good day," says Ms. Gobeille, a nurse case manager from Woonsocket, R.I. "When the battery was dying, it dropped down to probably 35 [m.p.g.]. It's a great little car. I really enjoyed my Prius, but this battery system is just too expensive to replace on such an old car."[3]

For plug in hybrid electric vehicle they use Prismatic Lithium-ion Battery Cell this product was recently developed and is now available to Original Equipment Manufacture, this new product has been improved to offer high performance and reliability for the use of Plug in Electric hybrid cars this means it balances both high energy and high power output.

Overall it can be seen that even though hybrid cars are good for the environment, and it is good for fuel economy. It is successful because there is less demand on the combustion engine when driving which saves fuel costs, cheaper road tax compared to normal cars. However the downside is that when the battery fails it is very expensive to repair or replace. The cost of these batteries will start from £1500.

1.2 Parametric Analysis

While carrying out my research I have found out that the battery can last for a life time of the car. Toyota has a guarantee of 100 000 miles with Prius. Within the lab testing it shows that the battery pack lasts up to 180 000, this is more than a normal car a person owns. However Honda and Ford states 8 years or 80 000 miles.

Li-ion HEV power cells

 

2nd gen

3rd gen

4th gen

Status

Established 2005

Established 2010

To be developed 2013

Shape

Cylindrical

Cylindrical

Prismatic

Cathode material

Manganese Mn-based

Improved Mn-based

Newly developed Mn-based

Anode material

Amorphous carbon

Amorphous carbon

Amorphous carbon

Capacity (Ah)

5.5

4.4

6.0

Weight (kg)

0.30

0.26

0.20

Power density (W/kg)

2,600

3,000

4,500

The above table shows a comparison of the performance between existing generation 2 and 3 to the generation I will be creating generation 4. It can be seen that from generation 2 and 3 the weight had decreased by 0.4 kg and the power density increased by 400 W/kg.

The product that I will be creating will have more power is it 4500; the lighter it is the more power it gives. The shape for my creation has changed from cylindrical to prismatic by doing this the battery module will be able to hold more battery cells because they have flat sides with thin separator between each cells. I have chosen the prismatic shape because it will deliver efficient energy and a higher power density. [4]

While I was researching to find the cost for my 4th Generation Cell I have concluded, while having a lower estimate for a ten year life which totals to 3650, this is calculated by 365 days multiplied by the life cycles over ten years. If a car has driven a total of 146,000 miles in ten years then cost can be calculated, for example at £250 per kWh an 8 kWh battery would cost £2000 resulting in £2000/146000 miles or £0.013 per mile. I have also figured that in reality a larger pack can be used to avoid the stress of the battery to discharge. Adding 2 kWh in battery capacity adds £500 to the cost, resulting in £2500/146000 miles or £0.017 per mile.

1.3 How my proposal fits into the existing scenario

Gathering the information from generation 2 and 3 I have come to a conclusion where customers are happy with the product however they are not meeting the markets needs. This is because customers do not choose to go for a hybrid car due to the cost of maintenance such as how the battery is being used and how long for. This is because it has been tested by labs that the battery should last as long as the cars life time.

Therefore carrying out research I have decided to create a generation 4 hybrid battery to meet all customers' needs and to achieve the main objective of having a clean environment. The functions will be similar to 3rd generation however it will be compatible and the customers will only need to change one part of the battery which will work out cheaper than how much they will be currently spending.

2.0 Product

Lead is a very heavy metal used in car batteries; research has been carried out for several years to improve the current batteries that are lighter as well as improved density in power. The lithium-ion has now become the logical choice to replace the lead batteries as it is the lightest metal available in the world, lithium is not only light weight but also highly reactive therefore pure lithium is never found in this state. Lithium metal is made up of lithium slats which as extracted by mining, these types of batteries are one of the most energetic batteries.

Lithium-ion batteries are rechargeable batteries which are used worldwide for portable device, energy storage systems and in electric vehicles. Lithium-ion batteries generate an electric current by transferring lithium-ions between two electrodes which are cathode and an anode in an electrolyte liquid. The more efficiently the lithium-ions can enter the two electrodes during charging and discharging cycles, the better the battery's capacity is, the better the life cycle will be.

2.1 What my product specification includes

The fourth generation battery offers a density of 4,500 W/Kg; the cells are made up from manganese based material which is designed for optimum size gain using microstructure control methods. The electrodes in each cell has be reduced in size and made thinner by doing this reduces the charge transfer resistance. This new generation battery demonstrates 1.5 times the output power density compared to the third generation; it will have a better heat radiation performance. When the battery is operated continuously at 11 degree C under the natural convection flow, the temperature will rise to 23 degree C and the temperature variation within the cell approximately 2 degree C.

Items

Specifications

Dimensions (mm)

100Ã-90Ã-15

Weight (kg)

0.20

Nominal Voltage (V)

3.6

Rated Capacity (Ah)

6.0

Specific Power (W/kg)

4,500

Specific Energy (Wh/kg)

72

The 4th generation battery pack will each contain two 16 cell modules comprising two blocks of 8 cells therefore there will be 32 cells in a battery pack. The battery monitoring module will be on top of the pack, this battery pack will be air-cooled cell layout and cooling flow are optimised in order to reduce the temperature rise in each cell and to minimise the variation of temperature between cells. To ensure that the vehicle is safe if an abnormal situation occurs, the battery pack is designed so that the cooling draft and gas from the exhaust is dissipated separately. An application-specific integrated circuit will be built into the battery module which is an enhanced self diagnosis circuit to monitor the system, this circuit can monitor up to six cells. Another difference compared to previous generations is that you are able to change one cell rather than the whole battery; this will work out cheaper and efficient for customers.

2.2 COST - CASH FLOW

The fourth generation lithium-ion battery will be sold at a price of £60 per cell. For the first month the company will produce 5,000 cells as a start up.

When selling bulks of battery packs to car companies and service centres. This is where most of the sales for Car Company will occur when they make a new car such as new registration plate. I will be charging companies £1700 per battery module if they buy single purchase. £1700 is calculated by £60 per cell and each battery module includes 32 cells. Therefore 60*32 = £1700. For the first few months I will consider selling the battery module individually if the sales go up and more companies would like to buy in bulks I will consider a discounted price depending on the amount of sales done buy a company.

A new inventory I have decided for the fourth generation if they would like used battery modules, I will charge them £30 per cell therefore it will cost £960.

Cash flow Forecast for Year 1

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Sales Revenue

Revenue from Customers

3400

17000

6800

6800

6800

6800

6800

85000

10200

10200

10200

10200

Total Revenue

3400

17000

6800

6800

6800

6800

6800

85000

10200

10200

10200

10200

Investment

 

 

 

 

 

 

 

 

 

 

 

 

Training

-1256

Vehicle

-8999

Insurance

-831.81

Materials

-3564

-3564

Equipment

-2259

Operating Costs

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

-75

-75

-75

-75

-75

-75

-75

-75

-75

-75

-75

-75

Advertising

-290

-250

-250

-250

-250

-250

-250

-250

-250

-250

-250

-250

Phone Contract

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

Website

0

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

Total Expenses

-17290.13

-350.3

-350.3

-350.3

-350.3

-350.3

-3914.3

-350.3

-350.3

-350.3

-350.3

-350.3

Incremental Cash flow

-13890.13

16649.7

6449.7

6449.7

6449.7

6449.7

2885.7

84649.7

9849.7

9849.7

9849.7

9849.7

Cumulative Cash flow

-£13,890.13

£2,759.57

£9,209.27

£15,658.97

£22,108.67

£28,558.37

£31,444.07

£116,093.77

£125,943.47

£135,793.17

£145,642.87

£155,492.57

Payback Period:

We would earn our initial investment back by February .

Cash flow Forecast for Year 2

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Sales Revenue

Revenue from Customers

10000

17000

20400

20400

20640

20640

20400

37400

22000

20640

22000

30080

Total Revenue

10000

17000

20400

20400

20640

20640

20400

37400

22000

20640

22000

30080

Investment

 

 

 

 

 

 

 

 

 

 

 

 

Training

-500

Insurance

-831.81

Materials

-5689

-5689

Equipment

-2259

Operating Costs

 

 

 

 

 

 

 

 

 

 

 

 

Petrol

-100

-100

-100

-100

-100

-100

-100

-100

-100

-100

-100

-100

Advertising

-250

-250

-250

-250

-250

-250

-250

-250

-250

-250

-250

-250

Phone Contract

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

-15.32

Website

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

-9.98

Total Expenses

-9655.11

-375.3

-375.3

-375.3

-375.3

-375.3

-6064.3

-375.3

-375.3

-375.3

-375.3

-375.3

Incremental Cash flow

344.89

16624.7

20024.7

20024.7

20264.7

20264.7

14335.7

37024.7

21624.7

20264.7

21624.7

29704.7

Cumulative Cash flow

£344.89

£16,969.59

£36,994.29

£57,018.99

£77,283.69

£97,548.39

£111,884.09

£148,908.79

£170,533.49

£190,798.19

£212,422.89

£242,127.59

Payback Period:

We would earn our initial investment back by January

2.3 Explanation of Cash Flow

Above I have created a cash flow for the first year and the second year of my production. To calculate my payback period I have included all the cost that's been taken out to purchase material or for a van to deliver the products. I have also included advertising as small companies will need to be aware of the 4th generation lithium-ion battery.

I used the Vista Print website to create my business card and a website where companies can view the details of the 4th generation battery and can read the specification and also order the product online. Yellow pages will advertise my product so everyone can contact us for price quotes.

As mentioned before, the most sales will occur in February and August, the rest of the year will include small sales for repair centres or if small companies.

An example of sales revenues from customers will be, Year 1 January it was £3400, this was made from selling 2 battery modules x £1700. This was our initial sale as it was the beginning of the launch and for people to hear about the lithium-ion battery. Whereas in August our peak time we had made £85000 from selling 50 battery modules. For the next year we decided to also sell individual cells because it may be cheaper to replace a cell than a battery pack. This is different to previous generations. As you can see in Year 2 introducing a new sale technique our sales has increased as well as the total revenue.

2.4 Payback Period

It can be seen that my payback period for Year 1 will be in February, I feel that this is good, after one month I will have my initial investment repaid. This shows that the sales are increasing from the first month and companies are buying the product. Even though payback period does not take account of time value of money which is a disadvantage as it can lead to wrong decisions it stills shows the earlier payback period the less risky the project is.

In year two the payback period is in January, this shows that I have earned back the cash outflow and also have £344.89 profit.

In conclusion looking at both my payback period it can be seen that it will only take a few months to earn back my initial investment, this is good as 4th generation lithium-battery will be popular for new cars and existing cars.

2.5 Staff Proposal

CalBattery Limited requires employees to have good knowledge and experience in several section of the company such as maintenance, testing and inspections. The reason for this is because it is important to recruit the right member in order to make sure our business is done properly for customers to be satisfied and their products and services given in high quality. After applying for the job in the company we request them to come into the company where the manager of the department that requested to recruit for a particular job and a member from the Human resource management will sit down and interview the applicant in order to decide whether they are the right person for the job, meeting the requirements of the specification. The process will consist on job analysis this means that the candidate that applied for the job must match the job description and qualification in order to go through the process of interviewing. The reason why an interview is taken place is to make sure the candidate that is applying for the job suits the qualifications and the descriptions as well as skills through a set of questions. In addition to this when accepting candidates you would want to see who you are taking on whether they are motivated in doing their job or even if their polite.

Our aim is to ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs , neither overstaffed nor understaffed in total or in respect of any one discipline or work grade. Human resource management also decides on how much the employees get paid each month according to their skill and month.

CalBattery Limited has internal and external recruitment; internal recruitment is when the workers within the business or organisation fill the vacancy. Managers within the departments will allow current members to have an opportunity to apply for the job; they find this easy as it they will know the candidate better than any new applicant. Whereas external applicants can apply after two weeks from internal recruitment is done.

2.6 Future planning & Improvements

Most modern hybrid cars are built with a battery which is designed to last more than 100,000 miles before it needs to be replaced, with proper care and maintenance the life of the battery would be longer. The next step for the business is to develop the maintenance of the battery buy using the integrated circuit that diagnosis the battery module and displays a message in the cars dashboard to show the driver if there is any fault in the battery module or if a cell is needed to replace. Also the battery module will be developed and built so that the driver can replace any battery cell by them self safely at the comfort of their own home, and to see the high potential of the battery which will fully charge the battery equivalent to the time it takes to fill up a car tank fully. Even though hybrid cars are considered as a disadvantage due to the cost of maintenance and value of the car, as price of fuel is gradually increasing to overprice hybrid cars in the future, majority of the public will eventually change to hybrid or electric vehicles.

3.0 Reference:

[1] California Lithium Battery, about, available from http://www.clbattery.com/#!about (accessed 20th December)

[2] Hitachi, Product Specification, Available from http://www.hitachi-ve.co.jp/en/products/spec/index.html (accessed 21st December 12)

[3]Gaylord, Chris, Hybrid cars 101 March 2012 Available from: http://www.csmonitor.com/Innovation/2012/0306/Hybrid-cars-101-How-long-should-batteries-last (accessed 21st December 12)

[4] Green car Congress, Characteristics of Lithium power Cells, available from http://www.greencarcongress.com/2011/03/hitachi-20110311.html (accessed 3rd Jan 2013)

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.