(4 years, 7 months ago)
Commons ChamberThe hon. Gentleman might well have read my speech, because those are exactly the points that I hope to make.
Returning now to innovation, when I studied electrical engineering at Imperial some decades ago, batteries were big, boring and messy. Now they are at the cutting edge of many exciting developments. We are getting down to the fundamentals of physics in the storage of energy and its applications everywhere from our smartphones to our national grid. Batteries are getting smaller, safer, more sustainable and more manageable, but we must also acknowledge that we are entering an era of battery reuse, recycling and transportation the like of which we have never before seen.
I am sure that the hon. Lady knows that in the United States, Senator Angus King has just introduced a Bill this month calling for investment worth $150 million in lithium battery recycling and research over the next five years. Wales is home to key strategic industrial sites such as Vale Nickel in Clydach and Envirowales in Ebbw Vale. They could play a part in recycling the batteries of the future. Will the hon. Lady join me in pressing the Minister to explain how the Government will support Wales to ensure that our existing industrial base is able to make the transition to recycle future battery technologies, and whether the UK is investing enough in this area to remain internationally competitive?
I am sure that the right hon. Lady will understand if I say that I shall be pressing the Minister to address how the investment will be coming to Newcastle and the north-east.
Through this debate, I hope we can gain a greater understanding of the significant opportunity for our recycling sector across the country, but particularly the contribution that the north-east can make.
The most common battery types in modern electric cars are lithium-ion. They hold a high-energy density, with up to 700 watt-hours per litre, which is seven times the density of traditional LED batteries. That means that lithium batteries are more suited for use in electric vehicles as they can hold charge for longer-distance journeys. The expanding electric vehicle market will mean many more lithium batteries, and the typical warranty period for these batteries is eight years or 100,000 miles. Legislation requires that manufacturers take back the batteries, but it does not say what they should do with them. It says:
“Producers of automotive batteries must collect waste automotive batteries for free from their final holders, such as garages and scrapyards.”
There is no mention of lithium batteries in the Batteries and Accumulators (Placing on the Market) Regulations 2008, nor in the amendments in 2015. The European directive 2013/56/EU and the Capacity Labelling of Portable Secondary (Rechargeable) and Automotive Batteries and Accumulators Regulations all admit the legal framework for recycling. I hope the Minister will address that. In the not-too-distant future, we are likely to be facing a large lithium-ion battery mountain with nowhere for it to go unless we put the processes in place now.
Lithium batteries are not considered suitable for electric vehicle applications when their cell capacity falls below 80% of its original value. Their reuse at this point is known as second-life application, and there is interest in, for example, securing supplies to recondition for energy grid value balancing, or for using again in electric vehicles, or other applications.
Indeed, I should say that I underwent a revelation when I realised that the increasing demand for electric storage caused by the unpredictable or cyclical nature of many renewable energy sources, such as wind and tide, could be balanced quite literally by the fact that every car owner in the future will have a significant battery storage capacity sitting on their drive. That is true during the lifetime of the battery, but it is also a factor afterwards.
For example, in China selling a reused end-of-life battery can raise up to 10 times more for the owner than recycling. However, second-life applications delay, rather than eliminate, the challenge of recycling. Research also suggests that safety issues increase with second-life applications, given the absence of a regulatory framework. Stockpiling is unsafe and environmentally undesirable, and it is illegal to send electric vehicle batteries to landfill, so if the direct reuse of a lithium battery is not possible, it must be recycled. There are further environmental considerations. Batteries are made with expensive and rare minerals, the mining of which raises environmental—and often human rights—concerns. Recycling helps to minimise the need for new mineral extraction and provides the UK with resilience in the light of supply chain risks. I hope the Minister will agree that we should be encouraging a significant recycling programme.
There is also the safety risk. Without the capacity to recycle a large number of batteries appropriately and affordably, we could see overuse, fly-tipping and unregulated reselling. In the short time that electric vehicles have been about, not many battery packs have reached the end of their eight-year life, and there were only 1,262 electric cars registered in the UK eight years ago. That is going to change.
Petrol cars have significant safety risks too. Two cars in every 1,000 registered in the UK catch fire each year, but these are known to our fire services, who can extinguish petrol or diesel vehicle fires within one hour. By contrast, lithium-ion battery fires can take up to eight hours, and require different skills and tools to extinguish. Research from Newcastle University found that a damaged battery ignited twice within 24 hours and then again six days afterwards, with violent explosions being a potential feature of electric vehicle and lithium-ion battery fires. Furthermore, electric vehicles are not legally required to be marked with information on the batteries they contain for the information of arriving emergency services.
Ongoing work by the UK health and safety of energy storage governance group—chaired by the Institution of Engineering and Technology, of which I am a member—raised concerns that the Home Office system used by the fire brigade to report incidents does not actually have a category for energy storage systems. The group is working on a code of practice to support professionals, and I hope the Minister will discuss this with her colleagues.
There continue to be advances in battery technology, and I pay tribute to the work of the Faraday Institution’s SOLBAT project in seeking to bring solid-state batteries to the market. They lack the flammable liquid electrolyte found in lithium-ion batteries, and are therefore safer. However, we must assume that lithium-ion batteries will continue to dominate for some years to come.
There are no facilities in the UK to recycle electric car batteries, so the small volume currently being created are exported to Europe, where they are destroyed in high temperature furnaces. This enables the recovery of valuable critical elements such as cobalt and nickel, but at least 50% of the battery materials are not recovered. Currently, the number of electric vehicle batteries being sent for recycling in this way is so low that the Environment Agency does not even record the figures. When UK firms export their batteries to Europe, they have to pay a gate fee of thousands of pounds. This is not feasible in the long term, given the expected increase in numbers. I understand that ECOBAT Logistics, the largest UK recycler of non-lithium-ion batteries, is looking seriously at initiating a lithium-ion battery recycling industry in the UK. Is the Minister in talks with that company?
There is also a Brexit question. Without a recycling facility of our own, we will be in a vulnerable position when the EU transition period ends. The Government have yet to set out the UK’s equivalent of the waste batteries and accumulators directive 2006. We may face export restrictions or duties, and we would have to accept external prices since these materials cannot be landfilled. Given that, as the hon. Member for Strangford (Jim Shannon) said, it will take planning and investment to develop the processes and permits for a battery processing factory in the United Kingdom, it is essential to get started now. We have to remember that it is not safe to stockpile these end-of-life batteries and let them accumulate in the UK.
I have talked a little bit about the challenges, because I want to emphasise to the Minister the importance of taking the right decisions now, but there are also opportunities that can help to level up our nation. The Faraday Institution-funded ReLiB project is researching ways to facilitate a circular economy in lithium-ion batteries, and Newcastle University has benefited from some of its work packages. Newcastle University is also proposing a battery safety health and environment hub on Tyneside. That is a fantastic idea. This hub would upskill and train those working with lithium batteries to safely manage and dispose of them, helping to address worker safety issues and some of the concerns I have raised. Would the Minister support such a hub?