Dear battery enthusiast,
Welcome to Battery Associates’ October 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 Editorial
BatteryMBA January 2025 Cohort (apply by 18 December 2024!)
Battery Insiders Podcast
Battery Associates’ Events & Updates
Battery Associates Company Membership: offers a unique opportunity to join Battery Associates’ global network dedicated to advancing innovation and sustainability across the entire battery value chain. Company members receive regular industry briefings, discounts on our training offerings, and visibility through events and the newsletter.
Interested in becoming a Company Member? Contact us for more information!
Battery Industry Highlights
In this section, we summarise relevant battery news from the past month.
On October 15, LG Energy Solution announced a major battery supply deal with Ford Motor Company to power Ford's electric commercial vans in Europe. From 2026, LG will supply Ford with 109 GWh of batteries over four to six years. Additionally, LG will shift battery production for the Ford Mustang Mach-E from Poland to its Michigan facility by 2025. This strategy aimed to benefit from U.S. tax credits and improve operational efficiency. According to LG’s CEO, David Kim, these agreements highlight LG's expertise in battery tech for demanding applications and its commitment to leadership in the European market.
B.A Commentary: The Inflation Reduction Act (IRA), implemented by the Biden administration in 2022, has attracted many battery manufacturers from Europe to the U.S., including LG Energy Solution. In Sep 2024, IRA announced over $3 billion for the battery manufacturing sector to create over 12,000 jobs. However, while LG plans to relocate some of its manufacturing capacity back to the U.S., we will need to wait and see how the new Republican administration implements the IRA.
On October 9, Rio Tinto announced its acquisition of Arcadium Lithium. Arcadium currently produces 75,000 tonnes of lithium carbonate equivalent annually, including lithium hydroxide and lithium carbonate, with plans to more than double capacity by 2028. Arcadium’s global operations, with around 2,400 employees, include facilities and projects in Argentina, Australia, Canada, China, Japan, the United Kingdom, and the United States.
B.A Commentary: Rio Tinto’s portfolio aims to establish a global leader in energy transition commodities—ranging from aluminium and copper to high-grade iron ore and lithium. The current acquisition will add Arcadium’s lithium business to Rio Tinto. Currently, Arcadium has an installed capacity of 75 kilotons per annum (ktpa) of lithium carbonate equivalent, with plans to expand to 295 ktpa by 2028. Arcadium's customer base already includes cell manufacturers and automakers like Panasonic Energy, General Motors, Ford, and Tesla.
On October 30, China’s CNGR Advanced Material Co. reported plans to invest USD 10 billion to build a large-scale battery material facility in Indonesia. The project, expected to span 10–15 years, aims to produce battery precursor products, an essential component for EV batteries. Recognised as a “national strategic project” by Indonesia, the facility will benefit from incentives like land procurement assistance, requiring around 3,000 to 5,000 hectares of land.
B.A Commentary: By January 2020, Indonesia had banned the export of nickel ore, which attracted significant investments from Chinese nickel processing companies. CNGR, already operating in Indonesia, plans to invite partners to develop additional processing plants at the facility, creating a fully integrated production site. In 2022, CNGR launched its battery-grade nickel production in Indonesia, installing eight production lines with a capacity of 80 ktpa within just 8.5 months of the announcement.
On October 21, Mercedes-Benz opened a mechanical-hydrometallurgical battery recycling plant. The plant is expected to recover over 96% of critical raw materials like lithium, nickel, and cobalt. Primobius, the technology partner, is collaborating on the development of this facility.
B.A Commentary: In March 2022, Mercedes-Benz announced the creation of LICULAR GmbH, a fully owned subsidiary responsible for overseeing recycling operations with a double-digit million-euro investment. The recycling pilot plant operation was set to begin in 2023. In March 2023, Mercedes-Benz held the groundbreaking ceremony to begin construction for the facility and planned to start the mechanical dismantling by the end of the year. By October 2024, they launched a mechanical-hydrometallurgical integrated plant to close the loop on battery material recycling.
On October 24, FREYR Battery was awarded a €122 million grant from the European Union Innovation Fund (EUIF) for its proposed Cathode Active Material (CAM) manufacturing project in Vaasa, Finland. The project aims to build an industrial-scale LFP (Lithium Iron Phosphate) CAM facility with an initial capacity of 30,000 tons per year. FREYR’s CEO, Tom Einar Jensen, expressed gratitude for the EU’s support, highlighting the importance of the grant in advancing sustainable battery solutions. The grant is expected to be finalised in the first quarter of 2025, after meeting certain criteria.
B.A Commentary: Following the Inflation Reduction Act by the Biden administration, FREYR Batteries has focused most of its efforts on accelerating development in the U.S. market. In November 2022, FREYR announced a 34 GWh battery manufacturing facility in Georgia, USA, with an estimated investment of USD 1.7 billion. While its European operations have been scaled down, the company’s LFP CAM facility has been selected for EU Innovation Fund support, which could kick-start its projects in Europe. Recently, FREYR acquired solar module manufacturing assets from Trina Solar.
B.A Editorial
Battery Manufacturing in Europe: Navigating the High Stakes of Scale and Finance
The Battery Associates team attended the Future Battery Forum in Berlin, held in the first week of November. A key topic among European battery manufacturers was scaling production and securing financing. While battery manufacturing can be profitable, it requires achieving economies of scale. Until then, it consumes significant capital during commissioning and ramp-up. As many European manufacturers are new to the industry, they need access to capital to navigate these challenges.
The current slowdown in EV demand, combined with the unsustainable battery pricing by Chinese companies in the global market and the U.S. Inflation Reduction Act in the US, has created a challenging environment for European battery manufacturers to secure funding.
Our Battery Associates team visited China earlier this year and toured many battery manufacturing facilities. When discussing pricing issues, some battery manufacturers agreed that the current pricing is unsustainable. According to Intercalation Station, the net profit margin of the majority of cell manufacturers is in the 2-3% range. Pure-play gigafactories like CATL, EVE, and Samsung SDI have higher margins, in the 8-10% range.
The major factors affecting the European ecosystem, as mentioned by industry leaders, are high labour and energy costs, low availability of skilled labour, regulatory complexity, lack of a fully integrated battery supply chain, and finally, the lack of availability of funding and tax credits. European legislators will need toy focus oissues to create a competitive marketplace that fosters industrial growth. Mario Draghi's report on Europe's competitiveness reflects many of these concerns. Decisive action will be necessary for the near and distant future of the European EV industry.
BatteryMBA January 2025 Cohort (Apply by 18th December 2024!)
BatteryMBA’s next cohort starts on 13th January 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 Podcast
Battery Associates runs a weekly 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: Insights on Greenvolt Power’s BESS Operation Management Strategies
Speaker: Antonio Montoto Rojo, Head of Storage at Greenvolt Power
Session Summary: In this episode, our guest speaker Antonio Montoto Rojo from Greenvolt Power joins us to discuss the future of energy storage and green energy projects across Europe and beyond. Learn about the company's innovative projects in countries like Poland, Hungary, and the UK, and gain insight into procurement strategies, capital management, and key revenue models in the energy sector. Don't miss this deep dive into the evolving world of renewable energy! Be sure to like, subscribe, and hit the notification bell for more insightful content. Click on the image below to listen to the full conversation.
Talk on: Unified Battery Cells, EV Market Challenges, and Innovation
Speaker: Sebastian Wolf, COO of PowerCo SE
Session Summary: In this episode, our guest speaker Sebastian Wolf, COO of PowerCo SE, discusses the company's role as a Volkswagen subsidiary focused on producing standardised battery cells, known as unified cells, for electric vehicles. He discusses the challenges and opportunities in the European battery market, including sustainability requirements, high labour and energy costs, and competition from Asian manufacturers. Wolf also touches on PowerCo's innovation efforts in battery chemistry and production processes, and the growing adoption of EVs in Europe. Click on the image below to listen to the full conversation.
Talk on: Insights on the Indian BESS market by Debmalya Sen
Speaker: Debmalya Sen, India Lead - Advanced Energy Solutions at World Economic Forum
Session Summary: In this episode, our guest speaker Debmalya Sen, discusses the rapid development of India’s battery storage sector, despite starting late. India currently has a small installed capacity of 2 GWh but is targeting 200 GWh by 2030 to support its renewable energy goals. The government has introduced policies and incentives, such as energy storage obligations and waivers, to support the industry. While India has made significant strides in electric mobility, particularly with two- and three-wheelers, challenges remain in areas like charging infrastructure and maximising revenue from battery applications. India’s efficient tendering process can serve as a model for other regions, but further investment in research and talent development is needed. Click on the image below to listen to the full conversation.
Talk on: Insights into the Indian Electric Mobility Market by Uday Narang
Speaker: Uday Narang, Founder of Omega Seiki Mobility
Session Summary: In this episode, our guest speaker, Uday Narang, Founder of Omega Seiki Mobility, discusses the rapid growth of the electric vehicle (EV) market, especially in emerging economies like India, where affordability and local customisation are driving adoption. He emphasises the importance of building a strong EV ecosystem, including infrastructure and strategic global partnerships, to support this transition. While large-scale battery manufacturing may come later, Narang believes that the long-term potential for EVs is significant, predicting they will surpass internal combustion engines within the next few years. Success, he notes, requires a long-term vision and collaboration across industries. Click on the image below to listen to the full conversation.
Talk on: Exploring the second life Li-ion battery ecosystem of India by Dr. Rashi Gupta
Speaker: Dr. Rashi Gupta, CEO of Vision Mechatronics
Session Summary: In this episode, our guest speaker, Dr. Rashi Gupta, CEO of Vision Mechatronics, discussed her journey in lithium battery manufacturing during the Battery Insiders Podcast, highlighting her early start in 2015 and overcoming scepticism about the industry's viability. She emphasised the significance of second-life batteries in India's price-sensitive market, bridging the gap between traditional lead-acid systems and modern lithium technology. Gupta also stressed the importance of safety and the need for better implementation of battery standards. Additionally, she highlighted her company's success in indigenising battery systems while advocating for women's empowerment in the energy sector through targeted training and inclusive product design. Click on the image below to listen to the full conversation.
Battery Associates’ Events & Updates
Battery Innovation Days (4th edition)
26 - 27 November 2024
Online & In-Person | Barcelona
Join us at the Battery Innovation Days (BID) 2024, returning for its fourth edition in a hybrid format in Barcelona, in-person and online. Co-organized by Europe’s leading battery R&I initiatives (Batteries Europe, Battery 2030+, BEPA, and IPCEIs), and hosted by ACCIÓ, this event fosters collaboration among researchers, policymakers, industry leaders, and end-users to shape Europe’s battery innovation priorities. Attendees can explore cutting-edge advancements in battery materials, cell design, manufacturing, and recycling, while enjoying networking opportunities, a Young Research Award ceremony, exhibitor booths, and an exclusive site visit. Discover more at www.batteryinnovationdays.eu
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!
Did you enjoy our newsletter?
Please share your feedback here. You may also suggest content for future newsletters by submitting content here.
For Battery innovation - join us!
Comments