Battery Inventory System – Track, Trace and Report on Lithium Ion Batteries

This Innovation Exchange challenge, delivered by Innovate UK KTN through the Global Alliance Africa project, is supporting Hinckley Group to identify innovative solutions for a tracking system for individual batteries, enabling circular usage. They will need to track, trace and report on batteries’ condition to be able to decide which are suitable for reuse in a second life, and for what possible use, and which batteries must be recycled/disposed.

Opportunity

Challenge opens

29/09/2022

Challenge closes

11/11/2022

Benefit

Successful applicants will be given the opportunity to pitch their solution to Hinckley Group. The winning applicant, as selected by Hinckley, will get the opportunity to collaborate with Hinckley on a trial project. Up to GBP 25,000 seed funding is available to the successful finalist for this collaboration.

Background

Hinckley Group, a Nigerian electronic waste recycling company, is responsible for processing a wide variety of waste streams, one of the most complex of which is lithium batteries.

With intense focus now on renewable energy, increasing battery storage capacity is required, resulting in more batteries being imported into Nigeria (currently 5-10 tonnes pa) with a steep future trajectory predicted. These batteries require careful recycling at the end of their first working lives. They are complex to ship and expensive to process and their storage creates a fire risk. Furthermore, many shipping lines are now refusing to export them. Hence local and sustainable solutions must be found to deal with them.

Hinckley receives thousands of batteries per month. Initial work with partners in terms of recovering, testing, and categorising these batteries has been promising in determining their suitability for second life applications. These recovered batteries often retain >60% of their original capacity, giving readings of 80 to 100 ohms. 

Currently, Hinckley may deal with the batteries as following.

  1. 40 % are shipped to Umicore and other authorised recyclers in Europe to be recycled as there are no local recyclers for end-of-life lithium batteries in Nigeria.
  2. recyclable batteries are separated into plastics, metals and chemicals to be used in the manufacturing of new battery cells.
  3. 60 % of the batteries, while no longer usable in their original application, still have capacity and can be entered into the second life market, where suitable applications can be found. 

Hinckley currently receives the following batteries:

- 18650 battery type (18mm x 65 mm) voltage of 3.6v and has between 2600 mAh and 3500 mAh (mili-amp-hots) = 3500 cells per month
- 26650 battery type (26.5 mm x 70mm0 of 3.6v and a battery capacity of 5200mAh = 2000 cells per month

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Challenge

Hinckley Group is actively looking for innovative solutions to be able to track, trace and report on the condition of Lithium Ion batteries (and other batteries)

Their initial work has shown promise in terms of processing and categorising these batteries for second life use. They require a tracking system that will code individual batteries for circular usage. They will need to track, trace and report on batteries’ condition to be able to decide which can be reused, and for what use, and which must be recycled or destroyed.

The IT lab has a Dekang 150 channel battery tester which the team uses to charge, test and collect data from collected cells. After their testing process, they categorise the cells by performance and battery type and enter them into inventory managment system. A Zebra barcode printer has been used for initial work in this area to tag the cells with a barcode for tracking purposes.

Hinckley Group is open to a wide range of solutions, from mechanical or electromagnetic solutions to Digital Ledger Technology such as blockchain or other beneficial technology. 

There is a pass or fail threshold for the amount of life in batteries. If they pass, lab techs will reset them for second-life usage, such as lighting or cooling usage. There could also be sale or leasing solutions developed (with short-term or long-term contracts)

About 60% of these cells will have a useful second life and the purpose of this challenge is the building of a robust inventory process to manage the lifecycle of these cells. A key requirement will be to identify which kinds of cells are best for which uses and what life expectancy is reliably expected. The remaining 40% of cells will not be useful and must be disposed/recycled elsewhere. 

We foresee two main areas to explore:

  • Providing a physical labelling solution using barcodes/QR codes
  • Providing a software solution for battery inventory management

Providing a physical labelling solution using barcodes/QR codes

It is envisaged that each cell will have an easily accessible code whose details can be automatically input into digital data fields. Possibly a flexible sticker with a QR code (just one idea). Automation is preferable to reduce the chances of human error. It is envisaged that the workshop team could cope with the application of 1,00 barcodes (ballpark) onto batteries per day. Or maybe there is a tracking solution that does not require any manual application (eg: lasers or tagging unit signatures).

Providing a software solution for battery inventory management
Currently there is a basic inventory web solution, but this is not suitable for the quality and quantity of data required. Hinckley Group needs a bespoke system for their particular needs. It should be something that the workshop teams can easily use for inputting data whilst tearing down systems. This should be something quite simple allowing for various levels of staff competency.

It is envisaged that any track, trace and reporting system will be scalable across other Hinckley Group waste streams. Initially it will be other types of batteries, but they would also like to look at using it for related electronic waste streams. Please suggest what these could be.

Solutions are invited but not limited from the following sectors:

  • Renewables, eg: solar
  • Electronics
  • Engineering
  • Power solutions
  • Mobile energy
  • Telecoms
  • Artificial intelligence
  • Data security

Related Challenge
This challenge will complement another challenge being run concurrently to find second life use for battery packs. Together they will help to solve the problem of valuable power resources being discarded, creating expense and pollution. They will also create opportunities for Hinckley Group to manage power solutions within the Circular Economy and support innovative businesses. The solution selected will ideally be scalable across other Hinckley Group waste streams.

Rewards & Benefits

Successful applicants will be given the opportunity to pitch their solution to Hinckley Group. The winning applicant, as selected by Hinckley, will get the opportunity to collaborate with Hinckley on a trial project 

The package may also include:

  • Up to 25k seed funding (subject to T&C). Note: seed funding is only available for up to 12 months, so longer term projects should be scheduled to reach milestones within this period.
  • Access to Hinkley Group facilities (workshop at Lekki Axis) and batteries
  • Technical support and mentorship from Hinckley Group team
  • Mentorship programme with Startup Discovery School (facilitated by KTN)
  • Industry sector expertise from KTN
  • Support in the development of a prototype or pilot
  • Invitation to attend or present at KTN events
  • Investor introductions (if investment is required)
  • Application support for any Innovate UK or similar competitions that are relevant.

Functional Requirements

The solution will be deployed in these places:

  • Hinckley Group battery workshop
  • Logistics partners systems
  • Customers premises
  • Resellers premises

We envisage the processing of 400+ individual cells per day initially (for first time/set up or returning/checking procedures). Each of these will have its data recorded and tracked including:

  • Processing date
  • Number of historic battery cycles
  • Capacity remaining
  • Other SON required test inline with ISO 17025 including test equipment calibration data 
  • Overall physical condition of cell to be recorded  
  • Number of previous users 
  • Expected lifespan
  • Info on what battery was used for previously

The focus of this challenge is to create a bespoke system of Hinckley’s particular needs. However, the possibility of integrating future global/industry initiatives such as the Battery Passport will be beneficial.

Technical Requirements

  • The physical element will be applied in the Hinckley Group workshop and must be a quick and simple process
  • The software must allow for a range of competencies within users.
  • The software must allow for usage across a range of devices including Windows and Apple laptops, Android tablets and Apple ipads, Android phones and iphones and scanners
  • The system must register readings on first pass each time with minimal downtime between passes (maximum 1 second)
  • Software must work offline and online hosted on Hinckley's cloud server
  • Barcodes (or other labels) must fit 18650 battery type and 26650 battery type

Operating Conditions

  • Any coding applied must be robust and remain associated with the battery throughout its life, and not be significantly damaged by wear and tear, heat or humidity.
  • The software must work under normal indoor and outdoor operating conditions. It should not be compromised by heat or humidity (within reason).

Deployment Timescale

29 Sep 2022: Competition Launch /Information Session/Q&A
11 Nov 2022: Deadline for applications
15 Dec 2022: Selection and notification of finalists
15 Jan 2022: Pitch day (provisional date)
20 Jan 2023: Selection of Winner (provisional date)
Jan 2023 – Feb 2023: Collaboration Discussions
Mar 2023: Pilot programme  started

Cost Requirement & Market Opportunity

  • Solution must be a stand-alone solution initially, but may in time be aligned with the international Battery Passport initiative (if beneficial). This may lead to additional opportunities.
  • Innovators will become collaborative partners with HG to service existing and new market opportunities
  • The opportunity involves the production, installation and ongoing monitoring of the battery inventory system, and possible upgrades and development over time.
  • There is also the possibility of ongoing involvement in any leasing solutions that are developed.
  • Costing for the barcode/label equipment should not exceed $500 USD

Out of Scope

  • Solutions with mostly manual data entry required
  • Solutions solely dependent on online functionality
  • Solutions requiring hardware purchase by partners using the system
  • Solutions only working on particular devices and OS

Eligibility & Assessment Criteria

Entrants to this competition must be:

  • Established businesses, startups, SMEs or individual entrepreneurs
  • Africa-based entrants are prioritised but solutions from the UK or RoW are invited to apply also.

Due Diligence requirements for seedfunding:

  • Applicants must ensure that receiving the £25k seed funding will not exceed the £315,000* state aid threshold under UK Minimal Financial Assistance regulations over the current and last 2 fiscal years [or *200,000 euros for applicants affected by EC de minimis regulations]
  • Further information will be required later relating to company policies, financial history and recent grand funding received.

Applications will be assessed on:

  • Relevance to the topic
  • Innovative nature of the subject
  • Coherence of the proposed business model
  • Feasibility/ economic viability
  • Development potential
  • Maturity of project/solution
  • Ability to launch project quickly/Ease of implementation
  • Price/quality ratio
  • Suitability for the Nigerian Market

IP & Potential Commercial Route

  • Existing background IP associated with a potential solution will remain with Solution Provider(s). Where any new IP generation is envisaged, it will be subject to the mutual IP agreement of the Solution Provider(s) and Innovation Challenger.
  • Any commercial deployment of a transferred solution or newly developed solution, through licensing, joint venture, partnership or direct investment, will be subject to the commercial agreement between the Solution Provider(s) and Innovation Challenger.
  • Where necessary, a non-disclosure agreement (NDA) may be signed to uphold confidentiality in the engagement between the Solution Provider(s) and Innovation Challenger. (This would be expected to be after company selection, it is suggested that details of IP be not disclosed, Focus on the outcomes of the technology proposed).
  • KTN do not take any share of IP ownership or enter into commercial ventures through the iX programme.