Dear battery enthusiast,
Welcome to Battery Associates’ July Newsletter. We have summarised some of the month’s most relevant battery news, highlighting technology and research development, and updates from Battery Associates.
Battery Newsletter structure:
Battery Industry Highlights
B.A Exclusive Summary
Battery Insiders Podcast
B.A Updates & Events
Battery Industry Highlights
In this section, we have summarised relevant battery news from the past month.
On July 10, according to the media, Chile secured a position among the few nations eligible for the U.S. electric vehicle (EV) tax credits. Products made from Chilean lithium will be treated similarly to those produced domestically in the United States. This decision, announced by the U.S. Treasury Department, marks a significant win for Chile, the world’s largest lithium producer. By qualifying, Chilean lithium products will gain a competitive edge in the U.S. market, enhancing their appeal to automakers and battery producers seeking to capitalise on these tax benefits.
B.A Commentary: In 2022, the Biden administration introduced tax credits under the Inflation Reduction Act to promote domestic battery component production and decrease reliance on China. However, Chilean lithium was initially excluded from these incentives due to the substantial share of Chinese companies in Chile’s lithium sector. In Chile’s rapidly evolving lithium industry, foreign influence is becoming increasingly prominent. Chinese firm Tianqi Lithium, holding a significant stake in the local company SQM, underscores China’s strategic push into the global lithium market. SQM is currently finalising a joint venture with Codelco, Chile’s state-run copper miner, as part of a government mandate aimed at enhancing state control over lithium resources. This move demonstrates Chile’s intent to capitalise on the strategic value of this "white metal". Meanwhile, U.S.-based Albemarle remains the only other active lithium producer in the country.
PowerCo, a battery subsidiary of the Volkswagen Group, has announced an agreement to commercialise QuantumScape’s solid-state battery technology. PowerCo has secured a non-exclusive license to produce up to 40 gigawatt-hours (GWh) of batteries annually using QuantumScape's technology, potentially expanding to 80 GWh. This capacity (40 GWh) is enough to equip around one million vehicles per year. The companies view this arrangement as the quickest route to large-scale solid-state battery production to meet the increasing global demand for improved electric vehicle batteries. This new agreement replaces a previous joint venture between Volkswagen Group and QuantumScape.
B.A Commentary: Volkswagen began investing in QuantumScape, a solid-state battery developer, in 2012. The two partners formed a joint venture with an initial investment of $100 million to enable industrial-level production of solid-state batteries. In June 2020, Volkswagen added another $200 million to its investment, bringing its total commitment to over $300 million by 2021. This substantial investment supports QuantumScape’s efforts to advance battery technology. In 2024, Volkswagen’s battery subsidiary secured a non-exclusive license, though details about the timing and location of solid-state battery production have not been disclosed.
On July 08, Sakuu Corporation and SK On announced a joint development agreement (JDA) to advance electric vehicle (EV) batteries using Sakuu’s proprietary dry manufacturing technology for electrodes. This partnership aims to combine Sakuu’s expertise in developing solid-state batteries with SK One's capabilities in mass manufacturing to bring next-generation batteries to market. The collaboration focuses on utilising Sakuu’s innovative techniques, such as multi-layer dry coating and 3D printing, to produce high-performance batteries with superior energy density, safety, and sustainability.
B.A Commentary: On June 10, 2021, Sakuu Corporation announced, a follow-on financing round, bringing its total funds raised to date to $62 million. Following this announcement, Sakuu opened its first pilot plant in Silicon Valley, USA, capable of producing up to 2.5 MWh per year of solid-state batteries. The plant will also serve as a customer learning centre for its advanced additive manufacturing platform. On March 22, 2024, Sakuu successfully passed the UN 38.3 certification and announced that its technology is available for immediate licensing. A recent partnership announcement with SK was followed by the release of lithium metal cell data on April 29, 2024; however, no investment from SK has been confirmed at this time. |
On July 1, Ferrari introduced two new extended warranty programs to provide enhanced protection for new and pre-owned vehicles. For new Ferraris, the first program extends the standard warranty by up to 15 years, while the second program offers up to 12 years of coverage for pre-owned models. Notably, Ferrari is the first to include scheduled high-voltage battery (HVB) replacements in their warranties, with replacements scheduled at the 8th and 16th years of the vehicle's life. These comprehensive programs are designed to ensure long-term reliability and peace of mind for Ferrari owners, making ownership even more rewarding.
B.A Commentary: The major focus of the warranties is to maintain the resale value of Ferrari's plug-in hybrid (PHEV) cars. The resale value of electric vehicles (EVs) is often lower than that of traditional vehicles due to several factors, such as rapid technological advancements that render older models outdated, battery degradation that affects range and performance, and higher initial purchase prices, which lead to steeper depreciation. Additionally, the used EV market is still developing, with fewer buyers familiar with EVs, and concerns about reliability and maintenance costs can further dampen demand.
On July 26, According to media reports. Umicore, a Belgian metals and materials firm, has cancelled its $1.5 billion battery cathode active materials (CAM) facility project in Loyalist Township, Ontario, citing economic uncertainties and the need for fiscal restraint as part of a broader cost-cutting strategy. The facility was initially announced in July 2022 to produce CAM for batteries, a critical component for EV batteries. The plant was expected to create 1,000 jobs and begin production by the end of 2025. Despite the cancellation, Umicore stated its commitment to maintaining its presence in Canada and exploring other opportunities to contribute to the country’s EV ecosystem.
B.A Commentary: Umicore has launched a strategic review to reassess its growth projections for the Battery Materials business beyond 2024. The company is implementing strict capital allocation discipline, with planned capital expenditures for 2024 set to remain below €650 million. Umicore aims to maximise the capacity utilisation of its existing assets before considering any new expansions, including a potential delay in constructing its battery materials plant in Loyalist, Canada, while it reviews its footprint in Asia, Europe, and North America. The company will optimise its battery materials setup to align with customer growth trajectories, ensuring that investments are made only after confirming customer demand. Umicore also plans to diversify its customer base, explore partnerships throughout its Battery Materials value chain, and focus on enhancing technology and operational efficiency.
B.A Exclusive Summary
Breakthrough: Majority of EVs Now Cheaper Than ICE Vehicles in China
Chinese automakers are already developing electric vehicles (EVs) at an affordable price for the domestic market, with almost two-thirds of the market offering EVs that are cheaper than petrol cars. In 2024, the price of battery cells fell to around USD 50 per kWh or less for the LFP (lithium iron phosphate) chemistry, potentially bringing the system-level cost to around USD 75 to 80 per kWh.The Battery Associates team visited China this year and spoke to various battery cell manufacturers who claim that the cost reduction is due to several factors, including Chinese government subsidies, vertical integration of Chinese companies, and overcapacity in the market.
The global slowdown of EVs and geopolitical factors, such as U.S. tariffs on Chinese batteries, has created a surplus of battery cells in the Chinese domestic market. As a result, many battery cell manufacturing companies report selling the cells at very low margins, or even at cost, without any profit margin.
The battery surplus has led to a drastic drop in battery prices, which could benefit EV buyers and energy storage system (ESS) companies, as they are using this opportunity to increase their energy storage capacity. With these very low battery system costs, competing with Chinese automakers has become almost impossible for automakers in Europe, America, and other regions.
Consequently, the U.S. and Europe are imposing a range of tariffs on Chinese automakers. While these lower prices are good for consumers and might even accelerate EV adoption in China and other regions, the current pricing practices are not sustainable for long-term business operations.
EU Battery Regulation Services
Visit our updated EU Battery Regulation Briefings website (batteryregulation.eu).You are able to request an expert call and also access our AI-powered tool to understand the passed EU Battery Regulation. For any additional questions, please do not hesitate to reach out via info@batteryregulation.eu.
Battery Insiders Podcast
Battery Associates runs a monthly 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. Our podcast also includes the recordings of the Battery Revolution Clubhouse sessions co-hosted live by Simon Engelke and Mariam Awara. Battery Insiders is hosted by Bhavya Jha and Dr. Simon Engelke.
Talk on: A Conversation with BEPA: Advancing Europe's Battery Value Chain
Speaker: Fabrice Stassin, Secretary General of BEPA - Batteries European Partnership Association
Session Summary: In this episode, Fabrice Stassin discusses BEPA's role in advancing Europe's battery industry. Since its inception by the European Commission, BEPA has been channelling substantial funding to build a robust battery value chain, from raw materials to recycling. The conversation covers BEPA's strategic vision, the allocation of €925 million from the Horizon Europe program, and the publication of their updated Strategic Research Innovation Agenda. They also address the importance of collaboration within Europe and internationally, as well as the need for sustained investment in research and development to maintain global competitiveness. Tune in for insights into BEPA's initiatives and their impact on the European battery ecosystem. Click on the image below to listen to the full conversation.
Talk on: Insights into ESS codes and standards
Speaker: Kevin Fok, Director of Compliance at LG Energy Solution Vertech, Inc.
Session Summary: Our podcast speaker discusses energy storage systems (ESS) and provides an overview of ESS codes and standards, highlighting the importance of standards like UL 1973, UL 9540, and NFPA 855 in ensuring safety and compliance in ESS design and installation. He discusses how ESS codes and standards vary across different jurisdictions, with local amendments often creating challenges for standardisation, though common frameworks like the International Fire Code help maintain some consistency.
The conversation also covers how emerging technologies, such as new battery chemistries, are integrated into existing codes and standards, with task groups and committees playing a crucial role in adapting standards to accommodate new advancements. Emphasis is placed on the importance of collaboration among various stakeholders, including manufacturers, system integrators, local authorities, and insurance companies, to ensure the successful implementation and operation of ESS projects. Click on the image below to listen to the full conversation.
Talk on: Insights into Battery Materials Processing by American Battery Technology Company (ABTC)
Speaker: Ryan Melsert, CEO, CTO, and Director of American Battery Technology Company (ABTC)
Session Summary: Our podcast speaker shares his insights on battery recycling technology and explains ABTC’s proprietary claystone lithium extraction process. He also discusses how ABTC’s business model can help OEMs and battery manufacturers create a sustainable battery life cycle. Click on the image below to listen to the full conversation.
Talk on: Exploring the Chinese Battery Industry with Wolfgang Bernhart
Speaker: Wolfgang Bernhart, Senior Partner at Roland Berger
Session Summary: In this episode, our guest Wolfgang Bernhart discusses the current dynamics of the Chinese market and its global impact on the battery industry. Wolfgang provides an overview of China’s significant investments in upstream sectors like nickel and lithium, as well as the challenges of overcapacity in graphite and cell manufacturing, leading to price drops and new regulations. He explains the barriers created by US policies, such as the Inflation Reduction Act and tariffs, which are restricting Chinese companies' access to the American market.
Meanwhile, Europe emerges as a key opportunity for Chinese investments due to supportive regulations and the potential for local partnerships. Wolfgang also highlights the strategic focus of Chinese firms on forming joint ventures and technology transfers in response to these global market shifts. Tune in for a comprehensive analysis of China's evolving role in the global battery industry and its strategies for navigating international markets. Click on the image below to listen to the full conversation.
Battery Associates Updates & Events
Webinar: Building India's Battery Supply Chain
29 August 2024
Online
We are delighted to announce a webinar hosted by The Battery Show India exploring key aspects of the battery supply chain, focusing on both the Indian context and global trends. The webinar will take place on 29th August from 4 to 5 pm IST.
The webinar will feature global supply chain structures, critical raw materials, and the geopolitical factors shaping trade. Join us to learn strategic approaches for resilient supply chain management, supported by real-world case studies and success stories from industry leaders.
Register here!
Mining Summit 2024
26 - 27 September 2024
In-Person | London
The Financial Times’ Mining Summit has established itself as the pre-eminent gathering of C-suite miners, investors and policymakers. Over 300 decision-makers will discuss the emerging opportunities and risks in the industry to help you strategise for a volatile year ahead. Hear from 65+ expert speakers, including CEOs of Anglo American, Rio Tinto, Vale and Ma’aden, the Minister of Minerals of the United Republic of Tanzania, the CFO of BHP, plus many more. Learn how your business can remain competitive at a time of geopolitical tensions, pricing volatility and rising environmental concerns.
Register here with code BATTERY to save 20% off your in-person or digital pass!
The Battery Show India
26 - 27 September 2024
In-Person | Delhi
Don't miss out on this unparalleled opportunity to source the latest technology and expand your network. Stay ahead of the curve by tapping into the latest tech trends and expanding your network in the dynamic Indian battery sector. Network with over 250 exhibitors and more than 300 brands. Interact with more than 15,000 trade visitors and potential clients. The Battery Show India will take place on 03-05 October 2024 at the India Expo Centre in Greater Noida. Register now!
The Battery Show North America
7 - 10 October 2024
In-Person | Detroit
Join North America’s largest advanced battery event, The Battery Show and Electric & Hybrid Vehicle Technology Expo, on October 7-10, 2024 at Huntington Place in downtown Detroit. Explore the latest technology, products, and solutions from over 1,150 suppliers catering to automotive, stationary, medical, aerospace, commercial, and industrial applications.
Enhance your education during the show by attending the pre-show workshops, an industry leading conference and free-to-attend sessions in the Battery Tech Theatre and Open Tech Forum on the expo floor! Network with over 19,000 professionals in the advanced battery and hybrid/electric vehicle community. Get your pass today.
Li-Ion Battery Europe
8 - 10 October 2024
In-Person | Brussels
LiBE 2024, a leading global platform that unites the full Li-ion Battery value chain, gathering 800+ leading Battery enthusiasts, Investors, Project Developers, Financiers, Technology suppliers and other stakeholders in the field of Li-ion batteries to discuss the latest advancements, share insights, and exchange ideas on how to improve the performance, reliability, and safety of Li-ion batteries. LIBE 2024 operates at the forefront, integrating stakeholders across the entire battery value chain. Anchoring this event, we take pride in bridging the gaps between 1,500+ investors, manufacturers, raw material suppliers, component suppliers, project developers, EV and other stakeholders from across the globe. Registerhereusing code CSR24LiBEto get 10% off!
Future Battery Forum
5 - 6 November 2024
In-Person | Berlin
Battery Associates is excited to partner with Future Battery Forum on 05-06th November in Berlin, which aims to bring together decision-makers from the entire value system of battery technologies: users, battery system & cell manufacturers, and their suppliers.
We are delighted to connect with fellow industry leaders and enthusiasts and engage in stimulating discussions at our company booth. Furthermore, Dr. Simon Engelke, Founder & Chair of Battery Associates will participate as a moderator.
Future Battery Forum will also be hosting the 2nd Women in Battery meetup during the first day of the event, which promises to be an insightful and enjoyable gathering, where women in the battery space will come together to share their experiences, network, and support each other.
Register here with code ‘FBF24BATTERYASSOCIATES’ and get a 20% discount on your ticket!
BatteryMBA September Cohort
BatteryMBA’s next cohort starts on 9th September, 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 Day 2024
We are excited to announce ACCURE Battery Intelligence and Thermo Fisher Scientific as our first sponsors and Shanghai Metals Market as a Knowledge Partner for Battery Day 2024!
This free online event will take place on Thursday, September 26, 2024, featuring panels, deep dive sessions, keynotes, and networking breaks to facilitate up-to-date knowledge of different battery technologies, future chemistries, applications, and market insights from leading battery experts. Let us know if you are interested in sponsoring, speaking at our event, or if you want to be involved in other ways, please contact info@battery.associates.
Battery Associates services
Battery Associates offers consultancy, innovation, and education services on a wide range of topics. Please get in touch if you're interested in any of our services!
About Battery Associates
Battery Associates (B.A) is a community-driven company on a mission to accelerate sustainable battery innovation - join us!
B.A operates as a global network that unites battery experts (BatteryPRO), a platform for innovative projects (BatteryLAB), and a facilitator of training programmes for aspiring battery leaders (BatteryEDU). B.A's educational programmes notably includes BatteryMBA, a 12-week programme training aspiring battery leaders.
We are rapidly becoming a reference community for battery enthusiasts who want to tackle pressing environmental and energy-related challenges. Battery Associates currently unites battery experts working across the battery value supply chain, based in over 20 countries. We're growing, join us in our work!
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ustainable battery innovation - join us!
B.A operates as a global network that unites battery experts (BatteryPRO), a platform for innovative projects (BatteryLAB), and a facilitator of training programmes for aspiring battery leaders (BatteryEDU). B.A's educational programmes notably includes BatteryMBA, a 12-week programme training aspiring battery leaders.
We are rapidly becoming a reference community for battery enthusiasts who want to tackle pressing environmental and energy-related challenges. Battery Associates currently unites battery experts working across the battery value supply chain, based in over 20 countries. We're growing, join us in our work!
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