Dear battery enthusiast,
Welcome to Battery Associates’ December 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
Battery Insiders Podcast
B.A Updates & Events
Battery Industry Highlights
In this section, we have summarised relevant battery news from the past month.
On December 6, Executive Vice President Maroš Šefčovič announced a proposal to add an additional €3 billion (specific to batteries) to the EU Innovation Fund to the previously announced €4 billion funding (not specific to batteries), which intends to boost battery manufacturing in Europe. The proposal is currently under consideration, and it is anticipated that it will likely be adopted in Q1 of 2024.
B.A Commentary: Rising electricity costs and supply chain compliance have rendered Europe less attractive for investments. Additionally, the Inflation Reduction Act (IRA) of the USA, has successfully attracted significant investments through direct financial benefits (like funds and research grants, etc), loans, and tax subsidy schemes. To enhance Europe's competitiveness, the EU Commission is proposing a $3 billion direct financial benefit for battery manufacturers. The Batteries European Partnership Association (BEPA) notes that this extra €3 billion primarily targets midstream in the battery value chain (cell manufacturers), which aims to boost confidence among private investors to engage both upstream and downstream in the European market.
On November 29, the Ministry of Mines and Coal of India officially announced the e-tender for 20 blocks of critical minerals mining sites in India, with an estimated value of USD 37.4 billion (INR 45,000 Crores). Among these 20 mining blocks, 4 are designated as mining licenses (ML), which will allow winning companies to commence mineral extraction immediately upon successful bidding. The remaining 16 blocks fall under the category of Composite License (CL), which will grant winning companies the ability to conduct exploration activities. Once sufficient information about mineral deposits is obtained, companies can then apply to the respective provisional (State) government to convert their licence from CL to ML status, enabling them to initiate full-fledged mining operations.
B.A Commentary: This is the first-ever critical minerals mining tender announced by the government of India. Concurrently, the government established Khanij Bidesh India Ltd. (KABIL), a joint venture public company with equity contributions from three Central Public Sector Enterprises: National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd. The objective is to secure critical raw material assets globally.
March 10, 2023, KABIL signed an MoU with Australia for collaboration on critical minerals exploration. Subsequently, on August 26, 2023, India inked an MoU with Chile, fostering bilateral cooperation in mineral resources. For more insights into India's critical mineral supply chain planning roadmap, visit this [link].
In the third week of December, the US Department of Energy (DoE) extended invitations to submit the Part 2 application of The TITLE 17 Innovative Clean Energy Loan Guarantee program to various cleantech companies, including battery manufacturers such as FREYR (specialising in Lithium batteries) and EOS Energy (known for aqueous zinc batteries). The TITLE 17 Innovative Clean Energy program offers a substantial loan guarantee authority of USD 62 billion for new projects. This loan package is specifically aimed at expediting innovation across a spectrum of clean technologies, including clean hydrogen production, storage, renewables, advanced nuclear, and industrial decarbonization projects.
B.A Commentary: The Inflation Reduction Act (IRA) has augmented the existing Loan authority for Title 17, injecting an additional USD 40 billion into the program. Consequently, the Loan Program Office (LPO) now boasts a total of USD 62 billion in loan guarantee authority for new projects. Furthermore, the Bipartisan Infrastructure Law (BIL) has granted exemptions from Title 17 section 1703 innovation requirements for projects backed by state energy financing institutions. This encompasses state energy authorities, green banks, and others, broadening eligibility for LPO loan guarantees to projects incorporating commercially established technologies, such as virtual power plants (VPPs) and aggregation of smaller projects.
On December 4, AM Batteries, a startup specialising in dry coating battery technology, secured USD 30 million in Series B funding. The funding round was led by Toyota Ventures. To date, the startup has raised a total of USD 60 million for its research and development activities.
B.A Commentary: Currently, Li-ion batteries are produced using a wet chemical process, presenting a notable drawback due to their elevated energy consumption during electrode drying and solvent recovery. Innovative startups like AM Batteries are introducing an alternative with Dry Battery Electrode (DBE) technology. In this approach, electrodes are dry-coated without solvent usage. AM Batteries asserts that their proprietary DBE technology can slash energy consumption, CAPEX expenditure, and carbon footprint by 40% in Li-ion battery plants. Besides its advantages dry coating technology also faces challenges in large-scale manufacturing.
On December 12, LG Chem marked the groundbreaking of its Nickel Magnesium Cobalt (NMC) cathode active materials (CAM) production plant in Tennessee, U.S. In the first phase, LG Chem has invested USD 1.6 billion to construct a facility with an annual production capacity of 60,000 tons. This plant is anticipated to become the largest CAM production facility in the U.S., capable of producing CAM for approximately 600,000 high-performance pure electric vehicles with a range of 500 km annually.
B.A Commentary: LG Chem has inked substantial Cathode Active Materials (CAM) supplier contracts with two major North American automakers. On July 26, 2022, a 950,000-ton deal was signed with General Motors, spanning eight years (from 2023 to 2030). Additionally, on October 4, 2023, LG Chem secured a CAM supply contract valued at USD 2.5 billion with Toyota. This facility aligns with U.S. Inflation Reduction Act (IRA) compliance, ensuring a supply chain from Free Trade Agreement (FTA) nations for Electric Vehicle (EV) tax credit eligibility. The facility is set to operate entirely on renewable energy. LG Chem claims advancements in manufacturing technology, aiming to achieve the world's highest annual production capacity of 10,000 tons per line in this new facility.
On December 15, Slovakian battery manufacturer InoBat inaugurated its battery production line at the Voderady facility. The installed line's maximum capacity allows InoBat to produce an estimated 50,000 battery cells per year. Production is slated to commence by the end of Q1 2024.
B.A Commentary: InoBat has commenced generating revenue through sales of cells for Lilium's electric vertical take-off and landing (eVTOL) Jets. Specialising in research, development, design, manufacturing, supply, and recycling, InoBat is dedicated to creating custom-designed electric batteries tailored to meet specific requirements.
On December 19, Nidec revealed a significant investment of USD 20.12 million (15.8 million GBP) in the UK-based Gore Street Energy Storage Fund PLC, facilitated by its subsidiary, Nidec Motor Corporation. This strategic investment ensures Nidec's participation in the bidding process for Gore Street Energy Storage Fund's (GSF) upcoming battery energy storage systems. The pipeline for these projects encompasses 360 MW, as already announced by GSF for the next five years.
B.A Commentary: Nidec has made a significant impact on the European market with 2,725 MW of installed Battery Energy Storage Systems (BESS) as of the first half of fiscal year 2023. The company has formed a partnership with Freyr batteries, resulting in the establishment of the joint venture Nidec Energy AS (Nidec 66.7%, FREYR 33.3%), and has announced the development of a BESS facility in Norway. Beyond Europe, Nidec plans to expand its operations. Gore Street Energy Storage Fund, based in the UK, possesses 371.5 MW of BESS assets as of December 2023, distributed across the UK (40%), Republic of Ireland (40%), U.S. (10%), and Germany (10%).
B.A Exclusive summary
Unveiling the Landscape: Trends and Growth in India's Li-ion Battery Market
India, a rapidly growing economy with an annual GDP growth rate of 7.6% in 2023, holds the third position globally in automotive sales by 2023. Despite the dominance of Internal Combustion Engine (ICE) vehicles, the Indian automobile industry anticipates a substantial shift with over 40% Electric Vehicle (EV) adoption by 2030. Currently, EV penetration stands at 5%.
In the realm of renewable energy, India ranks fourth in production and third in consumption, currently, coal power plants supply 55% of the energy needs of the country. With a goal to install 500 GW of non-fossil fuel-based energy by 2030, the Front of the Meter (FTM) energy storage market is projected to grow at 119%, between 2020 to 2030 and is estimated to hit 20 GWh annual addition by 2030.
The convergence of EV and renewable energy growth in India has led to a surging demand for batteries. Presently, the Indian EV sector fulfills 100% of its Li-ion battery demand by importing Li-ion batteries, while the BESS industry predominantly relies on Lead-acid batteries. The projected Li-ion battery demand for India is expected to reach260 GWh by 2030.
To foster a sustainable and self-reliant battery ecosystem, the Indian government launched theProduction Linked Incentive (PLI) Scheme, offering USD 15 billion (INR ₹18,100 crores) in financial incentives for Advanced Cell Chemistry manufacturing (Li-ion battery manufacturers). Top automakers have secured funding, boosting production capacity from0 to 50 GWh (production capacity allotted under PLI scheme) before which is expected to reach mass production by 2025.
India's Battery Energy Storage Systems (BESS) market is in its infancy, withfew pilot installationsestablished. The government has set an ambitious target of4,000 MWh BESSinstallation by 2030, supported by Viability Gap Funding of approximately USD 7.8 billion (INR ₹9,400 crores) subsidising up to40% of the CAPEX cost.
In conclusion, India envisions robust growth in the Li-ion battery industry, driven by strategic government initiatives and market demand.
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.
Website: Link
Battery Insiders Podcast Summary
Battery Associates runs a monthly podcast called Battery Insiders. Battery Insiders 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 Mariam Awara. Battery Insiders is hosted by Bhavya Jha and Dr. Simon Engelke.
Talk on: Insights on Solid-State Batteries
Speaker: Richard Bouveret, CEO & Chairman of Blue Solutions and Sriram Claude Ramanoudjame, Director of Strategic Marketing at Blue Solutions
Session Summary: This episode provides a brief overview of solid-state batteries, particularly those developed by Blue Solutions. The speakers, Richard Bouveret and Sriram Claude Ramanoudjame highlight the advantages of solid-state batteries, emphasizing their use of solid electrolytes, making batteries smaller and with higher energy density. Blue Solutions emphasizes a holistic understanding of battery technology, incorporating smart systems, electronics, and connectivity for effective performance and recycling. Watch the full conversation here!
Battery Associates Updates & Events
BatteryMBA January Cohort- Apply by 15th December
BatteryMBA January Cohort - Apply by 15 December
BatteryMBA’s tenth cohort kicked off on January 8 running until March 30, 2024! BatteryMBA offers 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, University of Birmingham, European Parliament, and many others. Enroll here!
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.
In case you are not able to join the January cohort, the next cohort will run from May 6, 2024 - July 27, 2024.
Battery Day 2024
Registrations are now open for Battery Day 2024, which will take place on Thursday, September 26, 2024. Battery Day 2024 will feature 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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