The Sustainability Case for Lithium-Ion in the Data Centre

Many of the sustainability questions that arise often relate to the battery supply chain. This includes raw material extraction, the manufacturing process and the distribution and transportation of the batteries after they are manufactured. 

The raw materials needed in the manufacturing of new batteries can come either from mining the materials or extracting them from recycled materials. In the case of VRLA batteries, the recycling system is an almost closed ecological loop. The plastic parts of the battery are recycled into more battery plastic. The sulfuric acid is collected and resold as commodity acid. The lead is smelted and returned to batteries or applied to other uses of lead.

Li-ion battery minerals are largely obtained through mining since recycling practices are still developing. When contrasting the sustainability implications of VRLA to li-ion during raw material extraction, there are three main considerations: the toxicity of the processes, the safety and ethics of the mining practices and the mass of material needed.

During raw material extraction of VRLA batteries, including the recycling process, lead is released. There is no known safe level of lead exposure and the health impacts are significant. It’s been clear for many centuries that the toxicity of lead is hazardous to human wellbeing. Over the years, many public health movements have removed it from gasoline, paint, solder, water-system piping and so on, to avoid air and water contamination. The toxicity of lead is the reason VRLA battery manufacturing and recycling processes are so regulated in many parts of the world.

The raw materials within li-ion batteries don’t have the same toxicity concerns as batteries with lead, but mining practices have prompted angst regarding social and environmental impacts. Most of the questionable mining practices are based on li-ion battery chemistries that include the raw material cobalt, an ingredient often used in larger three-phase UPS batteries.

It’s important to look for UPS vendors that only source batteries from manufacturers/distributors who source their materials from mines and smelters that are part of the Responsible Minerals Initiative (and can prove it with documentation), to ensure ethical practices. Since supply chains evolve over time, it’s also important to know whether vendors are using providers that are annually certified.

Demand for li-ion batteries, driven largely by the rapidly growing electric vehicle (EV) market, is moving the industry towards more stringent requirements for miners to improve the sustainability of the EV supply chains. UPS applications will benefit from that momentum. And, as practices mature, there will be a move to a more circular economy with a larger percentage of the raw materials obtained from recycled sources.

For typical installations, when replacement batteries over the UPS lifetime are considered, the environmental impact of manufacturing for li-ion systems is less than VRLA systems.

Concerns often raised regarding li-ion batteries and transportation have to do with safety. Li-ion batteries are categorized as “dangerous goods” by international regulations and by many transport companies, and therefore, strict regulations and processes make transporting them more complex.

For instance, specialized transportation is required, with temperature and pressure-controlled spaces, which drives up the cost to ship li-ion per kg. It’s a learning curve for many companies and makes it necessary to align with vendors and suppliers that have expertise in handling them.

The higher energy density of li-ion results in a significantly lighter weight (typically 60 percent to 80 percent less) compared to VRLA, so although the cost/kg may be greater, it is offset by the lighter weight. Environmental impact from the transportation and distribution of batteries is driven largely by the size and weight of the batteries.

The bottom line here is that although the complexity of distribution and transportation is increased, the lighter weight of li-ion over VRLA results in a reduced environmental impact.

The differences in environmental impact that occur during installation and handling of VRLA vs li-ion, although relatively small, is mainly driven by battery weight differences. For instance, since li-ion is lighter, the solution can often be carried into place from the loading dock vs. driven with a forklift that uses fuel or electricity. The differences also result from the fact that over the lifecycle, with VRLA, there are replacement units that must be installed/handled, whereas li-ion batteries generally last the life of the UPS. The lighter weight and need for less or no li-ion battery replacements results in decreased environmental impact during installation handling compared to VRLA.

With a goal of achieving net-zero emissions being an objective for many businesses, the question is often asked about the impact li-ion technology has on reducing emissions. UPSs are use-driven products from a CO2 emissions standpoint. In fact, more than 90 percent of an UPS’ emissions occur in this phase of the lifecycle, because of its energy consumption.

Batteries represent a small portion of this energy consumption. When comparing the two types of batteries, li-ion consumes less energy than VRLA batteries during operation. This is because battery chemistry differences result in slower self-discharge rates. Batteries must be charged to offset their rate of self-discharge. Typical losses over the lifetime of a VRLA battery are 0.2 percent of the rated UPS capacity, whereas for li-ion it is roughly half of that energy, or 0.1 percent.

VRLA batteries are generally specified for a service life of between three to five years, whereas li-ion batteries are specified at 10+ years (actual timeframe depends largely on power quality and how frequently the battery gets discharged/charged). In the life expectancy of an UPS, this often means two VRLA battery replacements are required whereas none are needed for li-ion.

For every replacement VRLA battery solution, the impact on sustainability is multiplied in the form of more manufacturing waste impacts, more distribution/transportation impacts, more installation and handling impacts and so on.  The bottom line is li-ion’s longer lifespan results in a more environmentally friendly sustainable impact during operation. The more replacements of VRLA needed over the UPS lifetime makes li-ion a better-for-the-environment option.

VRLA batteries’ recycling practices are mature. Vendors like Schneider Electric have well-established collection, re-use and recycling processes for more than 98 percent of the VRLA UPS batteries they place in the market.

With li-ion, on the other hand, the industry is still maturing. Therefore, it is important to work with a vendor that is committed to providing customers with products that support the same type of circular economy as with VRLA batteries. A key part of this is ensuring that products are managed at their end of life. This begins with a safe takeback process for defective and end of life batteries.

It requires knowledge and partnerships in transportation logistics of battery systems subject to stringent safety requirements and a commitment to customers that the vendor will recover the batteries when it can no longer serve its primary function. There are two key elements to ensuring a sustainable end-of life for li-ion batteries once a vendor takes back the systems. The vendor must be committed to qualified secondary uses that delay end of life and a sustainable recycling process.

To ensure proper disposal of electronic waste, CDW’s IT Asset Disposition Services (ITAD) teams offer our customers proper device wiping, removal, evaluation and recycling services for devices that are no longer being used. Proper asset disposition involves environmentally responsible recycling and disposal of e-waste. 

Since the lithium-ion battery industry is still maturing and the economics of recycling are not particularly favourable, end of life options are not as sustainable and cost effective as they will be in the future. Given the longevity of li-ion batteries, however, by the time new batteries reach end of life, it is expected that a fully functioning recycling system for li-ion will exist for a sustainable end of life at minimal to no cost.

APC by Schneider Electric is committed to designing superior products that feature greater energy efficiency, fewer hazardous substances and eco-friendly, end-of-life options. Sustainability sits at the core of APC’s purpose, culture and business and the company is committed to a net-zero future.

Environmental impact transparency: Schneider Electric is committed to environmental performance with its Green Premium label, which offers compliance with the latest regulations, transparency into environmental impacts, circular and low CO2 products.

Power infrastructure assessments: CDW and Schneider Electric can help ensure your current UPS system is right-sized to maximize energy efficiency.

Circular economy best practices: Schneider Electric offers green disposal options to suit your needs, from local drop-off facility recommendations to full “Rip, Replace, Recycle” services.