Lithium-ion Batteries logistics optimisation through global networks

Governments and corporations worldwide are enhancing their efforts to achieve business sustainability for the next 15 years – with 145 nations committing to reach Net Zero.

Achieving carbon neutrality in logistics requires a fundamental transformation in the way we transport goods, manage supply chains, and optimise the movement of resources, including implementing routes and network optimisation, and maximising load capacity. Nowadays, lithium-ion batteries, primarily used for hybrid and electric vehicle manufacturing, is one critical tool in climate positive production.

However, lithium-ion battery logistics can be challenging, especially considering many of these batteries are produced in China, a major global manufacturing hub. The main challenge involves navigating the complex logistics network and regulatory landscape associated with transporting these materials internationally. An ideal logistics provider in this scenario would have a robust network that can effectively bridge the gap between production in China and global distribution needs. This provider would leverage a combination of local knowledge and international logistics expertise, utilizing a network of partners and forwarders to handle these specialised shipments efficiently and in compliance with all regulations. Such a strategic approach ensures the smooth movement of lithium-ion batteries from manufacturing hubs to global markets.

Importance of Lithium-ion Batteries in Modern Day

The lithium-ion battery is the primary power source for a wide range of products – smartphones, watches, tablets, laptops, power tools, and even car keys.

These batteries are among the most important materials in the modern world, as they play an essential role in our online, tech-enabled society. However, lithium-ion batteries may have an even more influential role in our future. 

Growing Demand for Lithium-ion Batteries

The demand for lithium-ion batteries will projected to grow close to sevenfold, from 2022 to 2030. Thanks to the emerging and ever-growing electric vehicle (EV) market, which has been in constant development and is set to be more mainstream. 

Furthermore, many countries have started creating incentives for people to start driving EVs. Incentives in most major countries come in the form of subsidies,  such as grants, rebates, or tax credits. For example:

• In the UK, buyers of EVs offered grants worth around £2,500.
• In the US, buyers could avail of tax credits of up to $7,500 from the federal government.
• Individual states in the US also provide incentives to make EVs more attractive.
• China has the biggest EV market in the world and offers subsidies worth up to $7,000 for EV buyers.

However, with the increased demand, there is the likelihood for possible supply chain issues. 

Complexities of Lithium-ion Battery Logistics

Lithium-ion batteries, considered hazardous materials requires regulations to transport. In case of improperly packaged batteries, they may cause short circuits during flights, or can cause thermal overload. These hazards occur when the batteries make contact with conductive materials or with each other, or when the packaging is loose, causing the batteries to shake from impact. If short-circuiting or thermal runaway occurs, they can cause fires or explosions.

Despite the hazards present, it’s imperative that lithium batteries continue to be transported globally through air cargo. However, shippers must take responsibility for packaging and transporting them safely. The International Air Traffic Association (IATA) outlines the official Dangerous Goods Regulations, with strict guidelines for lithium-ion batteries: 

• The batteries must correctly identified, packaged, and labelled by shippers. 
• Shippers must comply with the Shipper’s Declaration for Dangerous Goods. 

Image source: IATA 

Building /Supporting Lithium-ion Battery Supply Chains

Many businesses are unaware of the hazard of transporting lithium-ion batteries. Furthermore, the regulations may not be stringent enough. Logistics companies face the challenge of ensuring the safe transportation of batteries amidst rising demand.

Our extensive logistics network, especially in China, has been instrumental in the success of lithium-ion battery distribution. This complex field requires a robust distribution network due to its intricacies, and our expansive coverage meets these demands. Our ability to navigate logistical challenges and provide optimal routing and reliable logistics services has established us as a key player in the lithium-ion battery supply chain, ensuring timely and secure deliveries of these critical components worldwide.

 Our Time Critical experts strategically utilise our extensive network to optimise lithium-ion battery distribution. We collaborate with our partners and forwarders to efficiently manage high-volume shipments. This approach allows us to bypass the need for costlyfor a costly and specialised supply chains, making the process more cost-effective and agile. Our high-end logistics solutions are designed to meet the complex demands of lithium-ion battery distribution, ensuring timely and secure delivery whilst supporting the expansion of eco-friendly technologies globally.

Discuss with our experts?: handcarry@royaleinternational.com or info@royaleinternational.com.

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