Dear battery enthusiast,
Welcome to Battery Associates’ January newsletter. We have summarised some of the month’s most relevant news, highlighting recent developments and updates in the battery space.
B.A's Battery Newsletter:
Battery Industry Highlights
B.A Editorial
Battery Insiders Podcast
Battery Associates’ Events & Updates
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Battery Industry Highlights
In this section, we summarise relevant battery news from the past month.
On January 24, 2025, LG Energy Solution (LGES) reported its first quarterly loss in three years, citing slowing electric vehicle (EV) demand due to changing environmental policies. LGES announced plans to cut capital expenditure by up to 30% in 2025, anticipating EV market recovery only after 2026, according to CEO Kim Dong-myung. The company also warned that U.S. policy changes under Donald Trump, including a potential repeal of the $7,500 federal EV tax credit, could further dampen EV demand in the near term.
B.A Commentary: LGES, the South Korean battery maker, which supplies Tesla, General Motors, and Hyundai, posted an operating loss of 226 billion won ($158 million) for Q4 2024, compared to a 338 billion won profit in the same period the previous year. LGES’s 19% year-on-year revenue decline in Q4 2024 and its first quarterly loss in three years highlight the mounting challenges facing the EV battery sector. Slowing EV demand, driven by changing environmental policies and policy uncertainty in the U.S., has weakened battery sales, particularly as Donald Trump’s potential repeal of the $7,500 EV tax credit threatens consumer incentives. LGES’s growth has been further challenged by the intensifying competition from Chinese battery makers and cost-cutting efforts by automakers.
On January 15, Aramco announced that it had identified areas with high lithium concentrations (up to 400 ppm) in Saudi Arabia and plans to utilize its existing infrastructure, advanced drilling operations, and geological data to support efficient mineral extraction. Aramco and Ma’aden have signed a non-binding Heads of Terms to establish a minerals exploration and mining joint venture (JV) in Saudi Arabia, focusing on energy transition minerals like lithium extraction. The JV aims to develop direct lithium extraction (DLE) technologies, with commercial lithium production potentially starting by 2027.
B.A Commentary: Saudi Arabia’s move into lithium extraction and battery minerals marks a shift in its economic strategy, and is driven by Vision 2030’s diversification goals and the global demand for energy transition materials. The Aramco-Ma’aden JV signals the Kingdom’s ambition to reduce its dependence on oil and position itself as a key supplier in the global EV and battery supply chain.
On January 15, 2025, Vianode announced its multi-billion-dollar supply agreement to supply synthetic graphite anode to General Motors (GM). Extending through 2033, this partnership aims to strengthen North America's battery and EV supply chain by supporting the development of large-scale sustainable anode graphite production.
B.A Commentary: Graphite anode is a critical component of lithium-ion batteries and securing domestic production aligns with U.S. policies incentivizing local sourcing of raw materials. Production is set to begin in 2027 and the material will be supplied to Ultium Cells LLC, GM’s battery cell manufacturing joint venture with LGES Energy Solution, for next-generation EV batteries and drive units.The agreement includes a minimum off-take commitment, demonstrating that Vianode’s graphite produced at its Norwegian pilot plant meets GM’s rigorous performance and validation standards.
On January 2, 2025, China’s Ministry of Commerce issued a notice outlining potential export restrictions on battery and lithium processing technologies. The public consultation period for feedback is open until February 1, 2025. The proposed restrictions target key battery material preparation technologies, including lithium iron phosphate (LFP) and lithium manganese iron phosphate (LMFP) cathode materials, with specific technical thresholds. Phosphate-based cathode precursors, such as iron phosphate and battery-grade lithium phosphate dihydrogen.
B.A Commentary: China’s proposed export restrictions on battery and lithium processing technologies reflect a strategic move to maintain its dominance in the global battery industry, secure domestic supply chains, and counter Western trade policies. As the world’s leading producer and processor of lithium-ion battery materials, China aims to protect its technological edge, ensuring that foreign competitors remain reliant on Chinese suppliers for critical battery components like LFP and LMFP cathode materials. These restrictions come in response to U.S. and European efforts to build independent EV supply chains, especially through tariffs, trade policies, and incentives under initiatives like the Inflation Reduction Act (IRA).
On January 27, 2025, CATL and DHL Group announced a strategic partnership to advance sustainable logistics globally. This framework agreement builds upon and strengthens a memorandum of understanding (MOU) signed last year, which outlined global collaboration on carbon-neutral facilities and the electrification of DHL's pick-up and delivery fleet.
B.A Commentary: Besides DHL’s electrification goal, a major focus is on integrating CATL into DHL’s logistics network. In the press release, CATL also mentioned its plans to explore the future of electric vehicles, battery recycling, and end-of-life management, along with pursuing innovations in the auto-mobility sector, supported by DHL's global network of EV Centers of Excellence.
Exclusive Summary
Driving Cost Reduction in European Battery Manufacturing Through Gigafactory Automation
The European battery industry is experiencing a transformative shift, driven by gigafactory automation, AI-driven production enhancements, and sustainable energy optimization. As gigafactory networks expand, manufacturers are leveraging modular production systems to scale capacity efficiently, reducing capital expenditure while improving operational flexibility. Companies like Volkswagen are integrating supply chain operations within close proximity of production sites, significantly cutting logistics costs. Additionally, precision robotics and automated electrode manufacturing are enhancing material utilization, ensuring high-quality battery production while minimizing waste.
Advanced digital integration and Industry 4.0 technologies are redefining process control in battery manufacturing. AI-powered machine learning models optimize real-time production parameters, reducing defects and increasing throughput. The implementation of digital twins and automated quality assurance systems ensures continuous monitoring and predictive maintenance, minimizing downtime and improving efficiency. Smart energy management strategies, such as waste heat recovery and smart grid integration, are further lowering production costs by optimizing electricity consumption and repurposing thermal energy for secondary processes.
Digitalization in battery cell manufacturing offers significant advantages by optimizing production processes, enabling data-driven decision-making, improving resilience, enhancing traceability, and ensuring product quality. Smart manufacturing solutions integrate digital technologies, such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), predictive analytics, and robotics, to address production inefficiencies and cost drivers. The financial benefits of digitalization in battery manufacturing are significant. Automation can reduce production costs by up to 0.8%, translating into annual savings of approximately $30 million in a 40 GWh gigafactory. Software-based solutions, such as digital production planning and energy management, offer quick returns on investment, with a payback period of less than two years. Hardware-intensive solutions, like predictive maintenance and traceability, require higher initial investments but provide long-term cost advantages.
BatteryMBA May 2025 Cohort
BatteryMBA’s next cohort starts on 5th May 2025, which will offer a combination of in-depth technical and business knowledge on a range of battery topics aligned with the sector's dynamic growth.
BatteryMBA alumni have affiliations with Tesla, Farasis Energy, JLR, Airbus, Hitachi High-Tech Europe, Schlumberger, Bertrandt Group, AMTE Power, the University of Birmingham, the European Parliament, and many others.
The course consists of an exciting battery case study track (with case studies from leading business schools). If you have any queries, reach out to us via email at info@battery.mba. Need-based scholarships and group discounts are available.
BatteryMBA May 2025 Cohort BatteryMBA’s next cohort starts on 5th May 2025, which will offer a combination of in-depth technical and business knowledge on a range of battery topics aligned with the sector's dynamic growth. BatteryMBA alumni have affiliations with Tesla, Farasis Energy, JLR, Airbus, Hitachi High-Tech Europe, Schlumberger, Bertrandt Group, AMTE Power, the University of Birmingham, the European Parliament, and many others. The course consists of an exciting battery case study track (with case studies from leading business schools). If you have any queries, reach out to us via email at info@battery.mba. Need-based scholarships and group discounts are available. |
Battery Insiders PodcastBattery Associates runs a podcast called Battery Insiders, which covers the role of batteries for sustainable development and battery-relevant topics featuring a range of battery experts and enthusiasts.
Talk on: Exploring Hytzer solid-state batteries
Speaker: Dr Xi Dou, Co-Founder & CEO of Hytzer Energy
Session Summary: In this episode, Dr. Xi Dou, co-founder and CEO of Hytzer Energy, discusses the current state and future potential of solid-state batteries (SSBs). He highlights their advantages, including higher energy density, much higher power density and intrinsically improved safety compared to traditional lithium-ion and other solid-state batteries, and explains the scientific and manufacturing challenges that hinder solid-state battery's commercialization in general. The conversation touches on the root causes of thermal run-away mechanism in conventional lithium-ion batteries and highlights why solid-state batteries address this safety issue; cost reduction potential, with polymer-based SSBs being more compatible with existing production lines. Dr. Dou also outlines key market applications with stringent safety requirements and demanding performance, such as flying taxis and premium electric vehicles. He further describes ongoing innovations, including advanced designs of lithium-metal anodes and anode-free batteries. He concludes with insights into future advancements, including batteries with energy densities exceeding 500 Wh/kg, and the readiness of large-format SSBs for commercial applications. Click on the image below to listen to the full conversation.
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About Battery Associates
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