The upstream and downstream value chain is more intertwined than ever, and investors and permitting bodies now must consider project and product environmental impacts alongside financial sensitivity to be commercially viable. This is important as novel chemistries and new production routes move towards operation.

The LCA and price models were constructed using Minviro and Exawatt internal methodologies, respectively, and represent the highest data quality available for generic LFP battery cells constructed into a pack of 70 kWh nominal capacity suitable for use in an electric car. The production year is assumed to be 2022, with prices reflective of this assumption, and 2022-2023 raw material life cycle impact data was used for the environmental impact quantification for different regions.

The decarbonisation and financial impacts of scenario changes relating to (i) the source of manufacturing energy mix, (ii) the source of lithium carbonate for use in the cathode and (iii) the source of the anode-grade graphite powder for use in the anode were calculated and modelled for a total of 27 potential LFP battery production pathways. Switching the energy grid mix between fossil-fuel-dominant (in China) to partially renewable (in the United States) to fully renewable (in Norway) results in a steady decrease in climate change potential impact. The lower impact production routes of graphite and lithium also had a significant impact.