Toyota's Hydrogen Fuel Cell Technology and the Challenges of Supply Chain Management
As the automotive industry continues to evolve, Toyota has emerged as a leading proponent of hydrogen fuel cell technology. This article explores Toyota's use of fuel cell technology, the challenges in securing raw materials, and the role that supply chain management plays in this transition. Additionally, it discusses the potential for platinum recycling to support the growth of hydrogen fuel cell vehicles (FCEVs).
Introduction to Toyota's Hydrogen Fuel Cell Technology
Starting in the early 1990s, Toyota began investigating fuel cell technology as a potential replacement for the internal combustion engine. Initially, this effort was driven by the untapped potential of fuel cells, which appeared to offer a cleaner and potentially more efficient alternative to traditional battery electric vehicles (BEVs).
Proprietary Technology and In-House Development
Toyota has consistently pushed forward with hydrogen fuel cell technology, developing it in-house and establishing a robust supply chain to source the necessary materials. This approach has allowed the company to maintain control over its fuel cell technology, ensuring that it aligns with their broader vision for sustainable transportation. As of now, Toyota is further along in FCEV development than in BEVs.
Platinum as a Key Material in PEM Fuel Cells
One of the most critical components of PEM fuel cells is platinum, which serves as the catalyst in the cell's proton exchange membrane. While platinum is a rare and expensive material, the automotive industry has established a market for recycled catalytic converters, which are a rich source of this precious metal.
Recycling Catalytic Converters for Platinum
The market for recycled catalytic converters has grown significantly, with around 100 recycling plants in the vehicle market alone. In fact, the value of catalytic converters in scrap cars often exceeds the value of the rest of the vehicle. For instance, two catalytic converters from a 20-year-old Volvo can sell for as much as ￡150 each to recyclers.
Current Market Conditions and Future Prospects
While the current production of FCEVs, such as the Toyota Mirai, is relatively low (approximately 2000 units per year), there is potential for growth. However, the cost of platinum and the production of hydrogen are major barriers to this growth. The market for platinum might face a decline as combustion cars give way to battery electric vehicles (BEVs).
The Challenges of Hydrogen Production and Distribution
The widespread adoption of FCEVs requires a seamless production, transmission, and distribution network for hydrogen. Unfortunately, no nation or company has yet established such a network, despite significant investments in the generation, transmission, and distribution of electricity. This constraint makes BEVs a more practical solution for the time being.
Comparison of Hydrogen and Electricity Infrastructure
Unlike the well-established infrastructure for electricity, the infrastructure for hydrogen is still in its infancy. While the cost of lithium-based batteries continues to decline, hydrogen remains a costly option. The ratio of FCEVs to BEVs (approximately 2000:1) suggests that there may be sufficient recycled platinum to meet current and near-future demand.
Conclusion
Toyota's commitment to hydrogen fuel cell technology is evident through its in-house development and proprietary supply chain. While the challenges of raw material sourcing and infrastructure development remain significant, the company continues to push forward. As the industry evolves, the role of recycled materials, such as platinum from catalytic converters, will play a crucial role in shaping the future of FCEVs.