Assignment 1 - The Design of a Battery for Hybrid/Electric Cars

Due - Sunday, May 26, 2024

This is a group assignment. Group members can be found in Assignment1Groups.docx.

Introduction

This assignment explores the business case and requirements for setting up a factory for the design and production of a new type of car battery. In doing so, many factors have to be taken into consideration, such as the effect on the environment and society, as well as the risks and opportunities involved. This assignment will also contain weekly problems that the students have to resolve.

Videos

Research Material

• Hybrid vs. Electric vs. Plug-In: What Are They & How Are They Different?
• Hybrid Batteries: Everything You Need to Know
• Battery Taxonomy: The Differences between Hybrid and EV Batteries
• Hybrid Vehicle Market
• Electric Vehicle Batteries: Materials, Cost, Lifespan
• Cost Projection of Lithium Ion Batteries

Background information

The Battery

You have patented a new technology which can be used with a car battery. The battery can be used inside a hybrid vehicle or a purely electric vehicle. The technology involves the use of solar panels to charge the battery while the vehicle is in operation.

You decide to attach your new technology to one of the existing types of car battery. Existing battery types are:

Lithium Ion Battery (Li-Ion)
• made from carbon and highly reactive lithium
• stores high amounts of energy
• more horsepower than a typical hybrid-battery
• weighs less (0.5kg)
• 150,000 miles/15 year battery Lifespan
• recyclable
• offers a 30 minute charge transmitted
• best choice for hybrid vehicles
• high cost (up to $5000), but will continue to decrease
• larger batteries may experience overheating
• need to produce large li-ion batteries necessary to power hybrid vehicles without reverting to the internal combustion engine

Nickel Metal Hybrid Battery (NiMH)
• made from hydrogen, nickel and another metal such as titanium
• on the market longer than Li-Ion batteries
• more affordable ($1500) than Li-Ion batteries
• offers 4-5 miles/kWhr
• weighs 1kg
• easily rechargeable but store less energy than lithium ion battery packs
• NiMH batteries are less expensive and more predictable in performance
• Both NiMH and Li-Ion batteries are both harmful to the environment when improperly disposed of

Lead Acid Battery
• made from lead, sulfuric acid, and water.
• most affordable battery ($500)
• the oldest auto battery
• least stored energy
• weighs 1kg
• recyclable
• attractive for environmentalists

Question: Which of the three above technologies do you think you should piggy-back your new technology? Why?

You can produce two types of batteries: an advanced enhanced battery, and a simple enhanced battery.

For the advanced enhanced battery, your new technology will double the price of each battery type but will also double the capacity of each battery type, depending on the availability of sunlight.

For the simple enhanced battery, your new technology will add 50% to the price of each battery type but will also add 50% to the capacity of each battery type, depending on the availability of sunlight.

Question: Which of these two battery types (advanced or simple) should you use to piggy-back your new technology? Why? In determining which battery to produce, you might wish to look at the Tesla models as a baseline for the advanced enhanced and the simple enhanced batteries. Tesla models can be seen at Tesla: Compare Models and Tesla Batteries: What Kind of Battery Does My Tesla Have?. For instance, the Tesla Model S uses lithium-ion battery cells in 16 modules and has a range of up to 600km.

Question: How much are you going to charge for your battery? For production, you will need to purchase roughly $250,000 worth of equipment to build either type of enhanced battery. Since your enhanced battery (simple or advanced) will provide the cash flow, you need to determine the price for each and the profitability for each. In doing so, you will have to research the cost and profitability of the lithium-ion battery, the nickel metal hybrid battery, and the lead acid battery.

Financing

You had received $200,000 as inheritance from relatives which have passed on. You have skillfully invested this in stocks which give you 5% annual dividend and 5% annual growth. Your funds now amount to $400,000.

Bank loans are available to you up to $5,000,000 at 5% interest rate if they consider you a low risk customer, or 10% if they consider you a medium risk customer. The bank will not give you a loan if they consider you a high risk customer.

Investors are interested in financing your operation. They are willing to give you $2,500,000 but they want 50% ownership of your product and warehouse. They are also willing to lend you $2,500,000 at 7.0% interest rate.

The rate of inflation is 5%.

Question: At this point, do you feel you should go ahead with your plans to mass-produce the enhanced battery or should you simply keep your money in stocks? Why?

The Warehouse

You have three options for a warehouse: one by a lake, one by train tracks, or build a new one near train tracks.

The warehouse by the lake:
• Can be leased for $2/square foot per year for five years, then the lease is negotiable.
• Contains 10,000 square feet of empty space
• Has access to shipping which can move produce at $0.10 per kilogram per kilometre.
• Is situated 40km from a large urban center.
• Is situated just 5km from a small town.

The warehouse by the train tracks:
• Can be leased for $1/square foot per year for five years, then the lease is negotiable.
• Contains 10,000 square feet of empty space
• Has access to rail transport which can move produce at $0.20 per kilogram per kilometre.
• Is situated in a small town.
• The town is known for high crime.
• Is situated 80km from a large urban center.

A new warehouse near train tracks:
• Can be built for $200/square foot.
• Can contain up to 20,000 square feet of empty space
• Is situated inside a forest with road service.
• Is situated just 5km from a small town.
• Has access to truck transport which can move produce at $0.40 per kilogram per kilometre.
• Has access to rail transport which is 10km away which can move produce at $0.20 per kilogram per kilometre.
• Is situated 80km from a large urban center.

Question: Which warehouse are you inclined to go with and why?

Specifications

In preparing the specifications for your hybrid battery warehouse and your battery, please consider the following:


See course notes from week 3 for details on each of these. Note that specifications are requirements that also specify to what degree the requirement must be met.

Please write specifications for your warehouse. The specifications for your warehouse should mostly be taken from the manufacture requirements, acceptance standards, and disposal.

Please write specifications for your battery. The specifications for your hybrid battery should mostly be taken from the performance requirements and operation requirements.

Conclusion - The Business Case

At this point, you have much more information than when you were looking at batteries, financing and warehouse locations.
Question: Which warehouse is the best in the short term (1-5 years), the medium term (5-15 years), and the long term (greater than 15 years)? You might wish to write a computer program to calculate your profits for each term.

Question: Considering your new battery, do you feel it is worthwhile going ahead with your new technology, or simply build batteries with a known and proven technology? Please justify your decision quantitatively (with numbers) and qualitatively (without numbers).

There is something called disruptive technology which is a technological advance that throws all planning into turmoil.

In the first case, disruption comes from environmentalists. This could completely derail your project.
Question: What are the environmental impacts of the mass production of batteries in general? Do this analysis in detail.

Question: Do you agree/disagree with the points made in Joe Rogan's podcast on EV's? You must fact check his podcast. See Joe Rogan: IMPOSSIBLE For ALL Electric Cars In 10 Years, Mines Must DOUBLE Output!.

In the second case, disruption might come from the emerging hydrogen powered vehicles. This technology is a direct competitor with electric/hybrid vehicles. For instance, instead of going full EV, Toyota will continue to offer a variety of powertrains, including hybrids, plug-ins, hydrogen fuel cells, and some battery-electric models. Watch the following video New Toyota CEO Shocks Everybody.
Question: Do you think hydrogen poses a threat to your plans to produce your new battery?

Please add any other comments on whether you want to go ahead with this production plan or not.

Weekly Problems

All weekly problems are to be done in class unless otherwise specified.

Week 1 - Introduction to Engineering Design (by email, due Sunday, May 12th)

1. Search ca.indeed.com for engineering positions. For job descriptions that fall outside the traditional forms of civil, electrical, mechanical, chemical and mining engineering, classify them as specialisations under the relevant traditional field.
2. Computers are listed as one of the 20th Century's most important achievements. The famous statement: "I think there is a world market for about five computers" has been attributed, rightly or wrongly, to Thomas J. Watson, who was Chairman of IBM in 1943 (Maney, 2003). Discuss what problems the Chairman might have anticipated computers could and could not solve.
3. What are some of the infrastructure problems in today's cities that artificial intelligence may be able to assist in solving?
4. Which disruptive technologies do you think will become important in the renewal of the existing engineering infrastructure?
5. Consider the problem of establishing a small scientific station based in Antarctica, to be permanently occupied by 20 people. The base is to have shipping access, and will receive supplies once a year in December. Make a list of the main components and items of each component which will be needed to run the base successfully.
6. Develop a list of five engineering achievements that you think may be on the list for the greatest in the 21st Century. Which branches of engineering will be responsible for these? Do these branches exist yet?

Week 2 - The Business Case

1. $2000 is invested at 5% annually for 20 years. What sum will be received at the end of the investment period?
2. What is the present value of $2,000 that will be received in 5 years if the inflation rate is 6% annually?
3. What is the present value of a series of annual payments of $10,000 over 10 years if the annual inflation rate is 8%?

Week 3 - Requirements Collection

1. A market opportunity exists for a can opener which is operated by disabled people with only one hand. The device is to open the can in such a manner that the contents are not spilt or contaminated, the contents can be easily removed and no dangerous or jagged edges are left exposed. Write a specification for the device.
2. With the increasing popularity of the game of snooker, most UK towns and cities now have many snooker and pool halls. There is a substantial market for a device which will make the cleaning of the tables easier and quicker. The present cleaning procedure for a snooker table is as follows:
   (a) Brush debris out from under the cushion into the middle of the table.
   (b) Use hand brush and dustpan to remove debris.
   (c) Iron the table.
   Write a specification for a combined vacuum cleaner and iron which would reduce the time taken in cleaning a snooker or pool table.

Marking Rubric

Assignment 1 is worth 15% of your final grade and as such is marked out of 15 as follows:

Submission

Please email any source code and documentation to: miguel.watler@senecapolytechnic.ca

Late Policy

You will be docked 10% if your assignment is submitted 1-2 days late.
You will be docked 20% if your assignment is submitted 3-4 days late.
You will be docked 30% if your assignment is submitted 5-6 days late.
You will be docked 40% if your assignment is submitted 7 days late.
You will be docked 50% if your assignment is submitted over 7 days late.