In 2015, the world’s leading lithium battery nations got together and signed the Paris Agreement, which signified that these nations would strive to reach net-zero carbon emissions by 2050. These nations include all of the biggest lithium superpowers such as the U.S., China, Australia, Chile, India, and all 27 countries in the EU. Since then, the world has been working together to leave a better environmental impact on the world.
But how has that affected the lithium battery industry? In this article, we’ll break down the impact of global climate agreements on the global lithium battery industry and global battery innovation.
Standardization and Collaboration
Global climate agreements bring unity, which enables faster growth. Nations with the same goal share their research findings, knowledge, and best practices to move collectively toward their mutual end-goal. For example, the Global Battery Alliance includes governments and businesses from around the world and all work together towards the common goal of making battery industries more environmentally sustainable.
For custom battery pack manufacturers, this collaboration is essential for advancing the environmental sustainability of their products. It allows for the standardization of more efficient production processes and the development of better battery chemistries that align with global climate goals. As a result, manufacturers can implement these shared innovations into their products, driving forward environmentally friendly designs that meet global standards.
Increased Funding for Research and Development
Pushing toward the unified goal of reducing carbon emissions leads to an increase in both private and public sector funding for lithium batteries regarding sustainability. Public and private sector organizations team up to come up with innovations in the lithium battery industry, such as safer electrolyte chemistries and faster-charging batteries. This global commitment also encourages governments to give grants to make clean energy more efficient and affordable. This influx of funding provides opportunities to innovate on a broader scale. Companies can leverage these funds to explore new materials or battery designs that reduce carbon footprints while enhancing battery performance. Moreover, the increased research in energy storage and charging technologies directly benefit industries that rely on battery-powered solutions, including electric vehicles (EVs), renewable energy storage, and specialized custom battery packs.
Breakthroughs in Battery Chemistry
Battery chemistry developments are happening constantly. We recently published part 1, part 2, part 3, and part 4 of a full series on all of the new battery chemistries currently in development, which you can read for further elaboration. One of the biggest battery chemistry developments is the solid-state electrolyte, which is safer and requires fewer materials to create—resulting in a smaller carbon footprint. The adoption of solid-state electrolyte technologies offers a promising path toward creating more sustainable, efficient, and safer battery packs. These innovations can be particularly beneficial for industries requiring specialized battery solutions, such as medical devices, outdoor equipment, and electric vehicles, where safety and performance are paramount.
Better Battery Recycling Protocols
Communal green initiatives lead to an improvement in battery recycling protocols, namely the implementation of more closed-cycle battery recycling centers. This means that instead of the battery materials being recycled to make other products, such as the plastic being used to make plastic water bottles, the materials are used entirely to make more lithium batteries. This way the valuable raw battery materials can be reused for new batteries, reducing the amount of minerals that will need to be harvested in the future. These global initiatives also call for a higher quantity of battery recycling centers, so they can be accessible to both urban and rural communities around the globe.
For custom battery pack manufacturers, implementing closed-loop recycling is a key step toward achieving sustainable production practices. By sourcing materials from recycled batteries, manufacturers can reduce their reliance on newly mined minerals and create a more sustainable product lifecycle. This process is essential for industries aiming to meet sustainability goals, especially in electric vehicles and renewable energy systems, where battery packs have a significant environmental footprint.
Government Incentives
Subsidies, tax incentives, and research funding can be offered to companies that meet the criteria of a greener battery future. This can be a big difference maker in pushing for change, as there is a tangible short-term benefit to be gained for each green company. The U.S. Inflation Reduction Act (IRA) and China’s New Energy Vehicle (NEV) are good examples of this. These incentives offer financial relief that makes the transition to greener battery technologies more affordable. By taking advantage of these programs, companies can invest in cleaner, more efficient manufacturing processes, which ultimately lead to products with a lower environmental impact. Additionally, these incentives often include support for the development of new battery chemistries, improving both the sustainability and competitiveness of custom battery solutions.
As global climate agreements continue to shape the future of the lithium battery industry, custom battery manufacturers must embrace the innovations that these agreements promote. By collaborating internationally, investing in R&D, adopting new battery chemistries, and leveraging government incentives, manufacturers can drive the next wave of sustainable battery technology. These efforts are essential for creating a greener future while continuing to meet the growing global demand for energy storage and battery-powered solutions.
Together, the world’s leading lithium battery nations are working towards a greener future. Policies like the Paris Agreement and the Glasgow Climate Pact (2021) are changing the lithium battery industry as we know it and sending us in the right direction. For more information about battery policy and our products, check out our blog.
