Dear battery enthusiast,
Welcome to Battery Associates’ May 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
Company Member News
Battery Insiders Podcast
B.A Updates & Events
Battery Industry Highlights
In this section, we have summarised relevant battery news from the past month.
On May 14, the U.S. government announced a tariff increase from 25% to 100% on Chinese-made EV imports. The government has also raised tariffs from 7.5% to 25% on other goods, including lithium-ion batteries. For critical minerals and other products, the tariff was raised from zero to 25%. This move is estimated to impact trade relations and affect Chinese goods worth $18 billion.
B.A Commentary: The current U.S. administration has introduced this tariff as a comprehensive strategy to protect domestic manufacturers from low-cost imports. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (IRA) to provide direct and indirect support to various industries, aiming to accelerate manufacturing within the country. Recently, the Biden administration increased import tariffs, fostering greater demand for U.S.-made components and products. This initiative is expected to bolster the competitiveness of American manufacturers against less expensive imports from China in the American market.
On May 18, China’s Ministry of Industry and Information Technology announced a proposal to curb unchecked expansion and promote sustainable, high-quality development in the lithium-ion battery manufacturing sector. The proposed regulations address several critical issues in China’s lithium-ion battery supply chain, including unbalanced regional development, mismatched supply and demand, inconsistent product quality, and insufficient innovation. The draft regulations encourage companies to focus on technological innovation to improve product quality and reduce costs rather than expanding production capacity.
B.A Commentary: This draft proposal is open to public opinion and encourages manufacturers to invest at least 3% of their primary business revenue in R&D rather than production capacity. The draft sets specific standards for energy density, cycle life, and other technical parameters for different types of lithium-ion batteries. The government also plans to address the supply-chain vulnerabilities and price fluctuations due to dependence on battery raw material imports.
On May 23, Tesla announced the construction of its first overseas Megafactory in Shanghai, China, following Tesla’s first Megafactory in California. The manufacturing facility is expected to begin producing energy storage packs by the first quarter of 2025, with an annual production capacity of up to 10,000 units, equivalent to 40 GWh of energy storage capacity.
B.A Commentary: According to the media, Tesla received its construction permit from the Chinese authorities around the third week of May 2024 and announced plans for the Megafactory. The Shanghai Lingang Economic Development Group has become Tesla’s first customer for its Megapacks, after both parties signed a contract for the initial order during a ceremony. The factory was initially scheduled to begin construction in the third quarter of 2023 and start production in the second quarter of 2024, but delays in the approval process have pushed back the planned timeline.
On May 16, Cylib announced the closing of its €55 million Series A investment round in equity financing. This investment is the largest ever raised by a European battery recycling company. Cylib plans to use these funds to initiate the commercialization of its proprietary technology by establishing a recycling plant at the brownfield industrial facility in Germany.
B.A Commentary: Founded in 2022, Cylib is a spin-out from RWTH Aachen University. On October 14, 2022, Cylib received 3.6 million euros in seed funding from Vsquared Ventures and Speedinvest to construct a pilot plant in Aachen by September 7, 2023. Following that, Cylib raised its Series A funding round from World Fund, Porsche Ventures, Bosch Ventures, DeepTech & Climate Fund, NRW.Venture, Vsquared Ventures, Speedinvest, 10x Founders, and established business angels. Notably, Cylib's funding round marks the first venture co-investment from industrial giants Porsche and Bosch in Germany.
On May 21, HELM AG (“HELM”) signed a Memorandum of Understanding (MoU) between its subsidiary company, LevertonHELM, and a Canada-based lithium refining company, Mangrove Lithium. Under this agreement, both parties are exploring opportunities to jointly establish a lithium refining facility to produce battery-grade lithium hydroxide monohydrate for EV batteries in Europe.
B.A Commentary: Mangrove Lithium was founded in 2012. To date, they have raised a cumulative USD 25 million from various investors, including BMW i Ventures, Breakthrough Energy Ventures, and BDC Capital. Between 2013 and 2015, Mangrove completed its first lab-scale demonstration and secured $500k from Round 1 ERA Grand Challenge winners. Between 2016 and 2018, Mangrove completed the first commercial-scale electrochemical cell testing and secured $3 million from Round 2 ERA Grand Challenge winners.
On May 23, Ultium Cells, the General Motors and LG Energy Solutions' battery manufacturing joint venture, announced a recycling partnership with Redwood Materials. According to the announcement, Redwood Materials will recycle production scrap from both Ultium Cells' facilities in Warren, Ohio, and Spring Hill, Tennessee. Each facility will span 2.8 million square feet and is expected to produce more than 80 GWh of battery cells annually. Redwood will receive the majority of the scrap from Ultium Cells' manufacturing process.
B.A Commentary: Initially, Ultium Cells partnered with Li-Cycle to manage its production scrap from its Ohio facility. According to the media announcement by Li-Cycle, the production scrap from Ultium’s Ohio plant is expected to be recycled at Li-Cycle's Rochester hub facility. However, since Li-Cycle temporarily halted the construction of its Rochester recycling plant in October 2023, Ultium Cells has partnered with Redwood Materials for its recycling needs. There is no update yet on the partnership status between Li-Cycle and Ultium Cells.
On 30 April, a new joint venture, Huaihai FinDreams Sodium Battery Technology, was incorporated, which is owned 51% by BYD's battery subsidiary FinDreams, with the remaining owned by Huaihai, with an investment of 10 billion yuan (approx. 1.4 billion USD). Upon completion, the facility is expected to produce 30 GWh of sodium-ion batteries annually. This joint venture is slated to become the world's largest supplier of sodium battery systems for microcars. They have announced plans to manufacture and sell batteries as well as recycle and utilise used batteries.
B.A Commentary: This collaboration marks BYD’s foray into manufacturing sodium-ion batteries. BYD plans to leverage Huaihai’s production experience in small vehicles and new energy automobiles, and its market resources in China and overseas (Pakistan, India, Chile, Peru, and Indonesia). Sodium-ion batteries have typically been projected for stationary energy storage systems rather than EVs due to their low energy density. With the surging demand for lower-cost EVs, the small-vehicle market has potential for sodium-ion batteries. However, due to the recent reduction in lithium costs, sodium-ion batteries have become less popular than previously anticipated. In China, Battery Associates was informed of a few sodium-ion battery projects that would currently be more expensive than lithium-ion (LFP) batteries. In the longer term, sodium-ion batteries could become cheaper than lithium-ion batteries.
B.A Exclusive Summary
Exploring the Consequences of U.S. Tariffs on Chinese EVs
The imposition of tariffs by the U.S. on Chinese EVs has ignited significant interest and concern across the global trade landscape. In 2022, the U.S. trade deficit with China soared to $382.9 billion, highlighting the deep economic interdependence between the two nations. Importing approximately $536.8 billion worth of goods and services from China, while exporting only around $153.8 billion underscores the trade relations' imbalance.
On May 14, the U.S. government announced a substantial tariff escalation on Chinese-made EVs, from 25% to 100%. Additionally, tariffs on other goods, like lithium-ion batteries, surged from 7.5% to 25%, while tariffs on critical minerals jumped from zero to 25%. These new tariffs are anticipated to impact Chinese trade worth $18 billion.
As a ripple effect, due to these sudden tariffs, China might seek alternative markets, such as Europe and Canada, to unload surplus goods. As the surplus influx floods these markets, the oversupply will reduce product costs and profitability of businesses in the recipient countries. Already, the EU has initiated investigations into EV imports from China as of October 2023.
European automakers caution against potential retaliation from China. On May 21, 2024, the CCCEU cited a Global Times interview with China’s chief automotive strategy expert, warning of the possibility of raising temporary tariff rates to a maximum of 25%, directly affecting European car manufacturers. Currently, the duty rate for vehicles imported into China stands at 15%.
The recent tariffs on Chinese EVs have spurred a surge in demand for American-made batteries and battery components. The complex trading dynamics between the world's two largest economies are expected to impact other economies significantly.
Company Member News
Our company member, FusionIRX has just signed a Master Service Agreement with AESC to mobilize their resources to support the projects in Bowling Green, KY, and Florence, SC, in the heart of the U.S. Battery Belt. They anticipate this partnership will evolve into one of their biggest clients as they leverage their industry knowledge to drive success.
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: Navigating EU Battery Regulations & the Future of BESS
Speaker: Lina Emilsson, Chief Operating Officer of Nidec Energy AS
Session Summary: In this podcast, Lina Emilsson discusses the implications of EU battery regulations on the BESS (Battery Energy Storage Systems) industry in Europe. She expresses her opinion on how these regulations can enhance the sustainability and quality standards of BESS within the EU market. Additionally, the discussion addresses the utilization of different cell chemistries such as NMC, LFP, and Na-ion, offering insights into which chemistry is likely to be adopted in BESS in the future. Furthermore, Lina explores the concept of second-life batteries in BESS applications and provides insights into operational expenditure (OPEX) within the BESS sector. Click on the image below to listen to the full conversation.
Talk on: Insights on Vehicle to Grid
Speaker: Claire Miller, Advisor and Mobility & Energy Expert
Session Summary: In this episode, Claire Miller delves into the concept of V2G, which involves utilizing electric vehicle batteries as a form of energy storage that can interact with the grid. She shares firsthand experience leading a project involving V2G technology deployment, highlighting challenges like technical glitches and trust issues. The conversation then explores regional variations in charging standards and regulatory policies, highlighting differences in standards across regions like the UK, California, and Australia. She also highlights the interaction between EVs and the grid, discussing how EVs can serve as grid resources, especially in regions with high renewable energy penetration. Click on the image below to listen to the full conversation.
Battery Associates Updates & Events
The Battery Show EU
18 - 20 June 2024
In-Person | Stuttgart
Get ready to meet 930+ industry leading suppliers at The Battery Show Europe and Electric & Hybrid Vehicle Technology Expo Europe, the largest European tradeshow and conference focused on the latest advanced battery and H/EV technology developments.
Join 19,000+ fellow engineers, executives, thought leaders, professionals and decision-makers at the Messe Stuttgart, Germany on 18-20th June, 2024 for three electrifying days, filled with opportunities to source the latest technologies, develop your industry knowledge of key topics and network with like-minded peers.
Register here and get an exclusive 20% discount using code FTR20!
2024 InterBattery Europe
19 - 21 June 2024
In-Person | Munich
InterBattery is Korea’s leading battery exhibition that offers the most effective business platform for entering the Asian battery market. It has been growing by 30% each year since its first exhibition in 2013 in line with the growth of world rechargeable battery industry. InterBattery, in which major global battery companies including Samsung SDI, LG Energy Solution, SK On and many others participate, is the largest battery exhibition in Korea with 300 exhibitors and over 85,000 visitors from around the world. InterBattery Europe is taking place within The Smarter E Europe to provide various programs for practical solutions and business development and as well as opportunities to gain the latest trends and insights for the entire value chain of battery industry in one place, at one time. Register here!
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
Battery Day 2024 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. If you are interested in being involved in the event, 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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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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