Dear battery enthusiast,
Welcome to Battery Associates’ June 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.
Media reports claim that the Chinese government plans to invest around 6 billion yuan ($845 million) to develop next-generation all-solid-state batteries (ASSBs) for electric vehicles (EVs). This significant investment includes support for six companies, such as CATL, BYD, and Geely, to advance ASSB technology. ASSBs are considered safer and more powerful than traditional lithium-ion batteries but are currently expensive and difficult to mass-produce. Despite current geopolitical tensions with the US and Europe, China is pushing forward with its EV production to stimulate its economy and promote a low-carbon future.
B.A Commentary: In January of this year, China established the CASIP (China All Solid State Battery Innovation Platform) consortium, which brings together the government, academia, and industry to accelerate research and commercialisation of solid-state battery technology. According to reports, six of the world's top ten largest battery makers are participating in the alliance, including CATL, BYD subsidiary FinDreams Battery, CALB, EVE Energy, and Gotion High-tech. The consortium also includes several state-owned carmakers, as well as BYD and Nio. Following the establishment of CASIP, the Chinese government has announced plans to invest USD 845 million to further the consortium's efforts.
On June 14, The European Commission provisionally determined that China's battery electric vehicle (BEV) industry benefits from unfair subsidies, posing a threat to European BEV producers. The investigation also considered the potential impacts on importers, users, and consumers within the EU. In response, the Commission seeks a WTO-compatible resolution with the Chinese authorities. If discussions fail, provisional countervailing duties will be imposed from July 4 (in the form to be decided by customs in each Member State). These duties include 17.4% for BYD, 20% for Geely, and 38.1% for SAIC, with other cooperating producers facing a weighted average duty of 21%, and non-cooperating producers facing a 38.1% duty.
B.A Commentary: On October 4, 2023, the European Commission launched an anti-subsidy investigation into BEV imports from China. The investigation is expected to conclude within 13 months, with provisional countervailing duties potentially being imposed by July 4, 2024. Definitive measures are to be established within four months following the provisional duties. Tesla, a BEV producer in China, may receive an individually calculated duty rate at the definitive stage. Other companies can request an accelerated review of their specific situations within nine months after the definitive measures are imposed.
On June 12, BMW cancelled a €2 billion ($2.15 billion) order for battery cells from the Swedish company Northvolt due to delays in delivery on a long-term supply contract signed in 2020. "Northvolt and the BMW Group have jointly decided to focus Northvolt's activities on the goal of developing next-generation battery cells," said BMW.
B.A Commentary: BMW signed a long-term cell supply contract with Northvolt in 2020, but BMW has cancelled the supply order. According to media reports, the main reason for the cancellation is a delay in the supply of battery cells. Manager magazine said, “Northvolt is having trouble ramping up industrial series production – it’s two years behind schedule and producing too much waste.” Currently, this battery cell supply gap will be filled by BMW’s existing cell supplier Samsung SDI.
On June 19, Northvolt is reviewing plans for a proposed cathode active material (CAM) plant in Borlange, central Sweden, after a newspaper reported its BMW order cancellation. Northvolt confirmed it is conducting a strategic review and engaging with various stakeholders, including the municipality, but no final decision has been made. The company is currently expanding operations in Sweden, Germany, and Canada to meet customer and investor demand.
B.A Commentary: In February 2022, Northvolt announced plans for a Sweden-based gigafactory, intending to establish a 100 GWh cathode active material manufacturing facility to supply CAM material for all planned Northvolt cell manufacturing facilities. This announcement followed the cancellation of a $2 billion cell supply contract. The gigafactory is expected to begin its initial operations in late 2024. Despite the cancellation, Northvolt still holds significant supply orders worth more than $50 billion.
On June 4, ACC, a battery joint venture supported by Stellantis and Mercedes, has paused work on its factories in Germany and Italy due to a shift towards lower-cost batteries amidst declining demand for electric vehicles (EVs). The company is researching and developing affordable batteries for cheaper EVs and will finalise its construction timeline by late 2024 or early 2025. ACC's expansion includes a factory in northern France, while projects in Italy's Termoli and Germany's Kaiserslautern are on hold.
B.A Commentary: The slowdown of the European EV market, influenced by high interest rates, reduced subsidies, and competition from Chinese manufacturers using cost-effective lithium iron phosphate (LFP) batteries, makes it a challenging environment for European battery manufacturers. In an interview, Stellantis CEO Carlos Tavares stated, "We are going to adjust our investment plans on EVs to the pace at which market sales of EVs grow." The joint venture ACC is 45% owned by Stellantis, 30% by Mercedes, and 25% by Saft, a battery subsidiary of France's TotalEnergies. Notably, Stellantis also partnered with CATL in November 2023 to produce LFP batteries in Europe.
On June 25, Rivian Automotive and Volkswagen Group announced plans to form a joint venture (JV) with a strategic investment of USD 5 billion from Volkswagen Group to develop next-generation electrical architecture and advanced software technology. This partnership aims to accelerate software development and lower costs per vehicle. Rivian will contribute its zonal hardware design and integrated technology platform, serving as the foundation for future software-defined vehicle (SDV) development, and will license its existing intellectual property to the JV. The companies plan to launch vehicles utilising this technology in the latter half of the decade, with Volkswagen benefiting from Rivian's current electrical architecture and software platform in the short term. Each company will continue to operate their vehicle businesses independently.
B.A Commentary: Volkswagen Group will initially invest $1 billion in Rivian through an unsecured convertible note, which will convert into Rivian’s common stock upon regulatory approval, after December 1, 2024. An additional investment of up to $2 billion in Rivian’s common stock is planned, split into two $1 billion tranches in 2025 and 2026, with pricing based on Rivian’s stock value. The $2 billion JV investment will be divided between an initial payment and a loan available in 2026.
B.A Exclusive Summary
EV Sales Decline and Market Competition Reshape Europe's Battery Market
In June, several significant events unfolded in Europe's battery sector. On June 12, BMW cancelled a €2 billion battery cell supply order from Northvolt. Following this event, on June 19, Northvolt announced it is reviewing plans for a new plant in Borlänge, central Sweden. Earlier, on June 4, ACC, a battery joint venture supported by Stellantis and Mercedes, paused work on its factories in Germany and Italy.
ACC shared that it paused work on factories in Germany and Italy as the company switches to lower-cost batteries amid slowing demand for electric vehicles. Since 2020, there have been numerous battery gigafactory projects. Notably, PowerCo, the battery arm of Volkswagen, announced six gigafactory facilities but later indefinitely halted four projects in Europe. Currently, a 40 GWh plant in Salzgitter, Germany, and another 40 GWh capacity plant in Valencia, Spain, have received the green light to proceed. Several Asian battery cell manufacturers, including Farasis Energy and SVOLT, have also cancelled plans in Europe.
Industry leaders have cited various factors for these cancellations or delays of battery gigafactories in Europe. The primary reason is the decline in EV sales. According to the European Commission, a total of 226,000 plug-in vehicles were registered across Europe, marking a 10% decline compared to the same period last year. This decline is more pronounced than the overall vehicle market's 3% decrease year-over-year (YoY).
In addition to the slowdown in EV sales, Chinese EV makers are putting a lot of pressure on European manufacturers in the European market. To support European car makers, the EU launched an investigation last year. On June 14, 2024, the European Commission provisionally determined that China's battery electric vehicle (BEV) industry benefits from unfair subsidies, posing a threat to EU BEV producers.
Several factors, such as the decline in EV sales, the growth trend of low-cost chemistry like LFP in the battery market, and competition from Chinese EV makers, have made Europe a very challenging market. It will be interesting to see how both battery and auto makers navigate these complex factors and create a sustainable EU battery industry.
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: Insights on Sodium-Ion batteries
Speaker: Andy Leach, Energy storage associate at BloombergNEF
Session Summary: Our guest speaker, Andy Leach from BloombergNEF, provided an outlook into the sodium-ion battery market in 2023. He discussed the latest trends and developments, including benchmarking cost estimates for sodium-ion batteries compared to other battery technologies. Additionally, he highlighted key milestones and advancements in the sodium battery industry, shedding light on its potential impact on the energy storage landscape. Click on the video below to listen to the full conversation.
Talk on: Strategies for a sustainable supply chain in Battery Manufacturing
Speaker: Sarah Montgomery, Co-Founder and CEO of Infyos, and Rob Johnson, former Global Purchasing Director of JLR
Session Summary: Our guest speakers, Sarah Montgomery and Rob Johnson shared their thoughts and action plans for EV and battery manufacturers on how to navigate the electrification transition in the EV industry. Sarah, in particular, shared her insights on where to start and how to manage the complex supply chain to ensure it becomes sustainable. Click on the video below to listen to the full conversation.
Talk on: Learning from Chinese Industrial Zones
Speaker: Kathleen Wagner, Interim Manager from Protafo Interim Performance
Session Summary: Our guest speaker, Kathleen Wagner shared her experiences working with Chinese industrial zones and how China develops and provides infrastructure for foreign companies to accelerate their arrival and expansion in the Chinese market. Kathleen also provided various insights on how European companies can learn and adopt constructive practices from China to accelerate industrial growth in Europe. Click on the video below to listen to the full conversation.
Talk on: Insights on Deep Sea Mining
Speaker: Kristin Hengstebeck, Director of Business Development and Market Research at The Metals Company (TMC)
Session Summary: Our podcast speaker, Kristin Hengstebeck discusses the positioning of deep-sea polymetallic nodules as a source of critical raw materials for the transition away from fossil fuels, and to support global development. The company has piloted both collection and processing of polymetallic nodules rich in nickel, cobalt, copper, and manganese located atop the Pacific Ocean seafloor at depths of over 4kms. In addition to eliminating the need to dig or drill to obtain the ore, TMC and its partners have proven conversion of nodules to battery grade nickel and cobalt sulfate utilizing commercial facilities in North America. TMC is preparing to apply for a commercial exploitation contract to collect nodules later this year, adhering to high standards for responsible nodule collection per International Seabed Authority regulations. This includes an extensive Environmental and Social Impact Assessment for its NORI-D project conducted over the past 12 years, in collaboration with leading marine research institutions and expert industry contractors. Click on the video below to listen to the full conversation.
Battery Associates Updates & Events
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.
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
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