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1、The Battery Report 2024 Volta Foundation)Revision:2025031001BATTERY REPORT 2024|1 INDUSTRY|Commercial milestones in battery development and manufacturing1 INDUSTRY|2 ACADEMIA|Academic breakthroughs in fundamental battery science3 TALENT|Supply,demand,and insights on talent working in the field4 POLI

2、CY|Government targets,incentives,regulations,and their implications5 PREDICTIONS|Trends we believe are likely to happen in the next 12 monthsThe Battery Report summarizes what we consider to be the most significant developments in the battery industry in 2024.This annual report seeks to provide a co

3、mprehensive and accessible overview of the current state of battery industry,research,talent,and policy.We hope to catalyze in-depth conversations on the state of batteries and its trajectory into the future.We Consider The Following Key Dimensions In Our Report:Disclaimer:The views expressed herein

4、 are solely those of the authors,and have not been reviewed or approved by any other organization,agency,employer or company.The primary purpose of this work is to educate and inform.The Content is for entertainment and informational purposes only and you should not construe any such information as

5、investment,financial,or other advice.Data and information is from publicly available sources and often self-reported by the companies.The authors declare no conflicts of interest in producing this report.INTRODUCTION“The battery is the technology of our time.-The EconomistP.2THE BATTERY REPORT IS A

6、PROGRAM BYSUPPORT THE BATTERY REPORT3INTRODUCTION1 INDUSTRY|BATTERY REPORT 2024|THANK YOU TO OUR MEMBERS AND SPONSORSP.4Volta Foundation is the worlds largest network of battery professionals.As a global not-for-profit association,Volta Foundation produces publications,networking opportunities,and i

7、ndustry resources to foster collaboration,innovation and advocacy within the battery industry.1 INDUSTRYP.5INDUSTRYBATTERY REPORT 2024|1 INDUSTRY|OVERVIEWP.62024 marked a year of continued growth and adaptation in the global battery industry.Global xEV sales climbed 25%to 17.7M units,with BEV demand

8、 up 14%while PHEV demand surged 50%.For the first time,BEVs in China have reached price parity with fossil vehicles.This milestone comes as China continues to lead the world in EV market penetration,with xEVs accounting for 45%of new car sales.Automakers globally are adapting their strategy,with Chi

9、nese automakers expanding into Europe and the Global South,while some traditional OEMs cut back on EV targets and investments.The BESS Decade continues to gain momentum with 55%year-on-year growth.Battery Energy Storage Systems BESS)now account for 15%of total battery deployments,up from 7%in 2020,h

10、ighlighting its rapid adoption.New BESS installations in 2024 alone contributed over 45%of the current cumulative global capacity of 150 GW/363 GWh,underscoring BESSs significance as one of the most promising and fast-growing sectors in the battery industry landscape.Battery prices at the pack level

11、 saw the largest drop since 2017,improving 20%from 2023 to a record low of$115/kWh.Global battery manufacturing capacity increased from 1.05 TWh to 1.45 TWh in 2024.Overcapacity across the battery supply chain drove cell prices to the unsustainably low level of$50/kWh for China-made LFP cells,result

12、ing in involutionary competition and investment pullback.New Chinese industrial policy aimed at phasing out low-quality capacity added further pressure.For battery producers navigating this challenging pricing environment,current strategic focus include cost reduction,technological innovation,vertic

13、al integration,and diversification into overseas markets in search of higher profit margins.China continues to dominate the supply chain,owning 80%of key cell components and cells.The battery investment landscape in 2024 slowed,with fewer VC/PE deals due to higher interest rates and geopolitical ten

14、sions.While growth was supported by significant debt raises and government fundingsuch as Northvolt ETT ABs 5 billion green offering and the US DOEs$9.6 billion loan to BlueOval SKthe bankruptcy of Northvolt highlighted risks in the sector,dampening investor confidence.Public market performance was

15、mixed,with established battery OEMs benefiting from new product launches,while shares in EV startups,charging infrastructure,and lithium companies underperformed.The US DOE supported the sector by investing over$3 billion into 25 projects to bolster domestic battery production and supply chains in t

16、he United States.Emerging technology trends in 2024 include the introduction of medium-nickel high-voltage NMC and high-compaction-density LFP cathodes.Significant strides were made in the commercialization of dry electrode processing,LxFP,engineered silicon,and pre-lithiated anodes,all aimed at imp

17、roving energy density,cost,and safety.Alternative cell chemistries,such as Na-ion,solid-state batteries SSB,sulfur,and Li-metal,also progressed toward commercialization.Notably,sodium-ion and semi-solid state products,primarily developed by Chinese manufacturers,are now being integrated into commerc

18、ial EVs and BESS systems.Novel use cases such as EVTOL,marine,and data centers are achieving higher levels of technical readiness.Notably,artificial intelligence AI)is quickly being deployed across the entire value chain from materials discovery to fleet data analytics to accelerate the advancement

19、of these technologies and is emerging as a new focus for commercial R&D and entrepreneurial energy in the space.Industry SummaryBATTERY REPORT 2024|1 INDUSTRY|1 INDUSTRYNotable EventsIndustry Value Chain Finance Costs Cell&Pack Manufacturing ApplicationsElectric Vehicles EVBattery Energy Storage Sys

20、tems BESSOtherSafety Legal Chemistry CathodeAnodeElectrolyte&SeparatorSolid StateLithium-SulphurNon-Lithium ChemistriesSupply Chain&Raw Materials Recycling&Reuse SoftwareOVERVIEWP.7BATTERY REPORT 2024|1 INDUSTRY|Rivian hires Jonas Reinke,ex-Porsche and Apple,to help launch R2 and R3 EV platforms.BYD

21、 breaks ground on$1.4B Na-ion battery plant in Xuzhou,China.Chile forms state-controlled entity with SQM to control domestic lithium production.NASA and Archer Aviation partner on advanced battery tech for eVTOLs.WEEK 1Northvolt raises$5B debt financing to enable expansion of first circular gigafact

22、ory in the western world.CALB announces plan to build a$2.2B Li-ion battery factory in Portugal.WEEK 3WEEK 4Norwegian parliament approves legislation that allows companies to apply for permits to prospect for minerals across 280,000 km2 of Norways continental shelf in the Arctic.WEEK 2NOTABLE EVENTS

23、|JANUARY Notable Events JanuarySource:Volta Foundations This Week in Batteries NewsletterP.8BATTERY REPORT 2024|1 INDUSTRY|LG Chem signs$19B cathode supply agreement with GM.UK EV registrations reach 1MM sold,sales for the month rose 21%.Cirba Solutions and EcoPro sign MOU to produce pCAM and CAM in

24、 North America.WEEK 1Volkswagen to invest$1.8B more in Brazil over the next five years.BYD launches$15,000 EV with 48 kWh pack,kicking off price war with fossil cars.WEEK 3WEEK 4China forms Solid State Battery consortium with 200+members including CATL,BYD,CALB,EVE Energy,Gotion,government agencies,

25、universities,research institutes,and capital partners to drive commercialization of SSBs by 2030.WEEK 2NOTABLE EVENTS|FEBRUARY Notable Events FebruaryACC secures financing for three European factories worth 4.4B.Source:Volta Foundations This Week in Batteries NewsletterP.9BATTERY REPORT 2024|1 INDUS

26、TRY|Nio and CATL partner to co-develop longer life batteries.BYD sales in India are up 314%,launches luxury EV in Indias market.Volvo Cars European EV sales grew 31%y/o/y.Renault to offer remanufactured drives and batteries in after-sales with plans for customers to be able to choose between new ori

27、ginal parts and remanufactured components.WEEK 1SK On announces plans to launch mass production of LFP batteries from 2026.BYD launched ultra low-cost$9.7k EV powered by 30 kWh of LFP Blade batteries.WEEK 3WEEK 4Rivian postpones$5B EV factory construction in Georgia.WEEK 2NOTABLE EVENTS|MARCH Notabl

28、e Events MarchSource:Volta Foundations This Week in Batteries NewsletterP.10BATTERY REPORT 2024|1 INDUSTRY|AM Batteries and Zeon partner to develop dry battery electrode with novel binders.LGES and General Motors joint venture begins production at 2nd US battery plant in Tennessee.CATL launches new

29、Tianxing battery with 1 million mile warranty and 15-year service life.CATL unveils Shengxing PLUS LFP battery at 205 Wh/kg,capable of charging at 4C with“1,000 km range.WEEK 1BYD announces plans to launch next-gen Blade battery this year,improving the specific energy density(SED)from 140 Wh/kg to 1

30、90 Wh/kg for LFP.LGES to license out battery patents to block tech infringement.WEEK 3WEEK 4CATL unveils a five-year zero degradation“TENER stationary storage battery with 430 Wh/L LFP cells and 6 MWh total capacity.WEEK 2NOTABLE EVENTS|APRIL Notable Events AprilSource:Volta Foundations This Week in

31、 Batteries NewsletterP.11BATTERY REPORT 2024|1 INDUSTRY|Lyten begins shipping lithium-sulfur A sample cells to automotive OEMs,including Stellantis and others.SES and Hyundai-Kia move forward to B Sample qualification phase.Factorial and LG Chem sign MOU to develop SSBs.GM invests$390MM in Kansas fo

32、r next-gen Chevy Bolt EV production.WEEK 1South Korea plans$7B push to pivot EV battery industry away from China.The Biden administration hikes tariffs on selected Chinese imports,including tariff on EV duties jumping to 102.5%from 27.5%.WEEK 3WEEK 4Ion Storage Systems commissions one of the largest

33、 SSB manufacturing facilities in the United States.WEEK 2NOTABLE EVENTS|MAY Notable Events MaySource:Volta Foundations This Week in Batteries NewsletterTulip Innovation launched a new licensing program aggregating patents related to lithium-ion battery technology from LG Energy Solution,Ltd.LG Energ

34、y Solution)and Panasonic Energy.P.12BATTERY REPORT 2024|1 INDUSTRY|EnerVenue set to raise$515MM for Ni-H batteries.China plans$845MM investment to develop SSBs in a government-led project.Geely presents improved“Short Blade LFP battery.Gotion and InoBat to build$1.29B Slovakia EV battery plant.WEEK

35、1Verkor secures more than$1.4B in green loans to complete its plant in northern France.EVE Energy launched cylindrical cells with 6C charge rate.WEEK 3WEEK 4BMW cancels$2B battery cells contract with Northvolt.WEEK 2NOTABLE EVENTS|JUNE Notable Events JuneSource:Volta Foundations This Week in Batteri

36、es NewsletterP.13BATTERY REPORT 2024|1 INDUSTRY|Addionics raises$39MM in its Series B round led by GM Ventures.Volkswagen announces plan to invest up to$5B in Rivian starting with an initial investment of$1B.Sila Nanotechnologies raises$375MM in a Series G round led by Sutter Hill Ventures.LGES anno

37、unces new 4680 line in South Korea,to begin mass production in Q3/Q4 with 8 GWh capacity.WEEK 1BYD to build$1B EV plant in Turkey,which will be able to produce 150,000 electric and hybrid vehicles annually.WEEK 3WEEK 4Peak Energy raises$55MM Series-A to scale up production of Na-ion batteries.WEEK 2

38、NOTABLE EVENTS|JULY Notable Events JulyTurkey announces$5B for the production of electric vehicles and$4.5B for battery production.Source:Volta Foundations This Week in Batteries NewsletterP.14BATTERY REPORT 2024|1 INDUSTRY|Northvolt closes its subsidiary Cuberg and pulls out of the United States.Ub

39、er partners with BYD,to offer 100,000 drivers lower prices and financing for EVs.BMW to set up five new assembly sites for high-voltage batteries.Mercedes-Benz Korea reveals issues with batteries supplied by Farasis following EV fire incident.WEEK 1Natron Energy announces$1.4B gigafactory in North C

40、arolina.Volkswagen scales back plans for battery cell plants in Europe,North America.WEEK 3WEEK 4CATL invests in EVTOL developer Autoflight.WEEK 2NOTABLE EVENTS|AUGUST Source:Volta Foundations This Week in Batteries NewsletterNotable Events AugustP.15BATTERY REPORT 2024|1 INDUSTRY|BMW and Redwood Ma

41、terials establish partnership to recycle Li-ion batteries in the U.S.A.24M raises$87MM Series E round at$1.3B valuation.Japan to fund up to$2.4B in new support for domestic EV battery production,bolstering EV plans of Toyota,Nissan,Mazda,and Subaru.GM announces NACS access for its EVs,gaining access

42、 to 17,800 Tesla Superchargers.WEEK 1Mercedes-Benz partners with Factorial to develop SSBs at 450Wh/kg.CATL shares that R&D spending reached$2.6B in 2023,employing 21,000 engineers.WEEK 3WEEK 4US DOE to award$3B to 25 projects for battery manufacturing sector including Group14,South32,Mitra Chem,and

43、 Form Energy.WEEK 2NOTABLE EVENTS|SEPTEMBER Source:Volta Foundations This Week in Batteries NewsletterNotable Events SeptemberP.16BATTERY REPORT 2024|1 INDUSTRY|Rio Tinto to acquire Arcadium Lithium in$6.7B deal.Tesla plans 4 new batteries in 2026,including batteries for its robotaxis.Enovix begins

44、shipping cell samples from its Malaysia fabs Agility Line.Lyten investing more than$1B to build the worlds first Li-S gigafactory in Nevada with up to 10 GWh/yr capacity.WEEK 1General Motors to retire“Ultium branding,expands NMC pouch cells to include LFP and prismatic formats.Indonesia forms a join

45、t venture with CATL to invest$1.2B in battery production.WEEK 3WEEK 4Form Energy raises$405M Series F round,bringing its total funding raised to more than$1.2B.WEEK 2NOTABLE EVENTS|OCTOBER Source:Volta Foundations This Week in Batteries NewsletterNotable Events OctoberP.17BATTERY REPORT 2024|1 INDUS

46、TRY|Lyten purchases the manufacturing assets from Cuberg/Northvolt.Volvo to take ownership of Northvolt battery JV.CATL announces 2nd-gen sodium-ion EV battery that works down to 40C.WEEK 1CATL adds 1000 new R&D staff to SSB program,begins trial production of 20Ah samples.Northvolt files for bankrup

47、tcy;Scania loans$100MM for bankruptcy process.WEEK 3WEEK 4BYD hits brakes on Canadian expansion plans amid 100%tariffs on Chinese EVs.WEEK 2NOTABLE EVENTS|NOVEMBER Source:Volta Foundations This Week in Batteries NewsletterHonda opens a demonstration plant for its proprietary solid state battery tech

48、nology.Notable Events NovemberP.18BYDs quarterly sales of BEVs overtake Teslas for the first time.BATTERY REPORT 2024|1 INDUSTRY|GM sells its stake in a battery plant in Lansing,Michigan to its JV partner LGES at the same they extend technology partnership.Stellantis CEO Carlos Tavares resigns earli

49、er than expected due to falling U.S.sales without naming a successor.BYD launches sodium-ion BESS battery based on the companys Long Blade Battery technology.The U.S.DOE announces a$7B conditional commitment to StarPlus Energy,a JV between FCA and Stellantis,to build a battery factory in Indiana.WEE

50、K 1Stellantis and CATL to invest$4.3B to build an LFP plant in Spain.Hyundai announces the production of solid state batteries by the end of 2025 and is planning mass production by 2030.WEEK 3WEEK 4Coreshell launched commercial scale 60 Ah battery cells;employs low-cost metallurgical silicon in comb

51、ination with lithium iron phosphate LFP)cathodes.WEEK 2NOTABLE EVENTS|DECEMBER Source:Volta Foundations This Week in Batteries NewsletterNotable Events DecemberP.19Sponsored ContentBATTERY REPORT 2024|SPONSORED CONTENT DRAGONFLY ENERGYP.20BATTERY REPORT 2024|1 INDUSTRY|1 INDUSTRYOVERVIEWP.21Notable

52、EventsIndustry Value Chain Finance Costs Cell&Pack Manufacturing Applications Electric Vehicles EVBattery Energy Storage Systems BESSOtherSafety Legal Chemistry CathodeAnodeElectrolyte&SeparatorSolid StateLithium-SulphurNon-Lithium ChemistriesSupply Chain&Raw Materials Recycling&Reuse Software1 INDU

53、STRY|BATTERY REPORT 2024|Cathode Active MaterialsMaterials ProcessingCell ComponentCell ManufacturingSystem AssemblyRecycling Raw MaterialsElectrolyte&SeparatorAnode Active MaterialsLithium ChemicalNatural Graphite MiningGraphite Synthesis&ProcessingNi,Co Chemical and pCAMNickel,Cobalt MiningLithium

54、 MiningCellVehicle OEMsEnergy StorageRecyclingINDUSTRY VALUE CHAIN|BATTERY MANUFACTURING|LARGE CAP COMPANIES*estimated as of December 2024 Incumbents And/Or Public Companies$1B Market Cap/Valuation)*P.221 INDUSTRY|BATTERY REPORT 2024|INDUSTRY VALUE CHAIN|BATTERY MANUFACTURING|STARTUPS AND SMALL CAP

55、COMPANIESLi-metal,Electrolyte,SeparatorAnode Active MaterialsMaterials ProcessingCell ComponentCell ManufacturingSystem AssemblyRecycling Raw MaterialsLithium MiningNickel,Cobalt MiningNatural Graphite MiningLithium ChemicalNi,Co ChemicalpCAM GraphiteOther Battery ChemicalsCathode Active MaterialsEl

56、ectrode Lithium-ion Sodium-ion Solid-state&Li-metal*estimated as of December 2024Startup And/Or Small Companies$30M Valuation)*P.231 INDUSTRY|BATTERY REPORT 2024|Materials ProcessingCell ComponentCell ManufacturingSystem Recycling INDUSTRY VALUE CHAIN|BATTERY MANUFACTURING|STARTUPS AND SMALL CAP COM

57、PANIESCathode Active MaterialsLithium ChemicalLi-ionSolid electrolytesGraphitepCAMOther componentsSolid-stateProcess TechnologyOther battery conceptsAnode Active MaterialsStartups And/Or University Spin OffsP.241 INDUSTRY|BATTERY REPORT 2024|INDUSTRY VALUE CHAIN|BATTERY BUSINESS DIRECTORYP.25KEY IND

58、USTRY PAIN POINTSFragmented Market:Difficulty identifying and evaluating potential partners,suppliers,or customers due to a fragmented and siloed global battery supply chain.Inefficient Sourcing:Significant time wasted manually sourcing and vetting battery companies via trade shows,personal networks

59、,or unreliable sources.Inconsistent Data Quality:Limited access to accurate,comprehensive,and regularly updated information on companies across the battery industry globally.Limited Visibility:Companies especially startups or specialized vendors face challenges gaining visibility and connecting with

60、 larger industry players and investors.A Comprehensive Database of Battery Companies:The Battery Business Directory2000 COMPANIES MAPPED to 13 SUPPLY CHAIN SEGMENTSSource:Battery Business DirectoryTHE BATTERY BUSINESS DIRECTORYThe Battery Business Directory is the largest open-access database for co

61、mpanies operating across the global battery industry.The directory maps over 2,000 organizations spanning 13 key supply-chain segments,providing comprehensive,reliable data that helps battery professionals discover potential partners,suppliers,and customers.1 INDUSTRY|BATTERY REPORT 2024|Source:Cont

62、ent&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.Demand includes exports.There is a time lag from material and cell production to installation into end-use demand.Figures are rounded to the nearest 50.December 2024 data is partially estimated.INDU

63、STRY VALUE CHAIN|OVERCAPACITY IN VALUE CHAINOVERCAPACITY POSES EXISTENTIAL CHALLENGEIn China,EV and industrial subsidies have been scaled back,and new industry standards are aimed at culling low-quality capacityThis has led to a crowded market and fierce competition in several stages of the supply c

64、hain,with price wars being common and some companies producing despite no ordersIn other industries-such as solar-this story eventually resulted in a wave of consolidationIn the rest of the world,capacity investments have overshot local demand and many are now being cancelled,cut down,or delayedCHIN

65、ESE MANUFACTURERS HAVE 3 STRATEGIC OPTIONS1.Embrace cost competition domestically&cut prices to retain market share 2.Focus on technical innovation and supply chain efficiencies to optimize the cost and value of products3.Expand overseas,where there is less competition,and an opportunity to maximize

66、 profits to offset shrinking margins back homeOvercapacity Across The Supply Chain Has Resulted In Intense Competition&Pullback Of Investments2024 DEMAND,PRODUCTION,AND CAPACITY ACROSS SELECTED SECTORS IN CHINAP.261 INDUSTRY|BATTERY REPORT 2024|Source:Content&analysis provided courtesy of CRU Group

67、Distinguished Partner),BloombergNEF Distinguished Partner);Top chart shows production by ownership;bottom charts show capacity by location.INDUSTRY VALUE CHAIN|WHO OWNS THE SUPPLY CHAINChina does not have significant geological deposits of battery raw materials,but companies have invested in oversea

68、s operations and in processing capacity at homeThis is manifested as dominance in the midstream for chemical intermediates and active materialsVertical integration is a strategic benefit as well as a cost advantageDespite US FEOC rules prompting some operations to reduce their Chinese ownership stak

69、e,many non-Chinese upstream and midstream projects have been curtailed in 2024,leaving the overall picture unchangedChinas supply chain dominance has led to intensely competitive conditions that are squeezing non-Chinese producersChinas Ownership Of The Supply Chain Extends Beyond Its BordersP.271 I

70、NDUSTRY|BATTERY REPORT 2024|Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.GPM=gross profit margin.Box plot displays where 50%of the data points fall.INDUSTRY VALUE CHAIN|STRATEGIC FOCUSChinese Manufacturers Are Chasing Profits Overse

71、as And Market Potential For LFPCURRENT STRATEGIC FOCUS OF MAJOR CHINESE BATTERY/P/CAM PRODUCERSOVERSEAS SALES ARE SIGNIFICANTLY MORE PROFITABLE FOR CHINESE PRODUCERSBATTERY MAKERS EARN HIGHER PROFITS FROM ESS,BUT P/CAM BEARS THE LOSSBattery producers Minimise scrutiny in US market via technology lic

72、ensing model Strengthen partnerships with OEMs in long-term tech.roadmap Develop products for energy storage,PHEV and commercial vehicle market Fast-charging technology Energy density improvement via chemistry and structural changes Financially support suppliers to secure high-tech materialsp/CAM pr

73、oducers Construct pilot lines overseas to attract OEM and battery customers Acquire existing projects and environmental permits from brownfield sites Traditional NMC producers diversifying into LxFP despite low margins Expand metal refining business to consume raw materials High compaction density L

74、FP CAM Mid-Ni high-voltage CAM for BEV and PHEV Ultra high-Ni p/CAM for solid-state batteries Continue LMFP developmentP.281 INDUSTRY|BATTERY REPORT 2024|Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.INDUSTRY VALUE CHAIN|STRATEGIC FO

75、CUSKorean and Japanese Companies Roles In The Battery Supply ChainLONG TERM:Korean focus is on vertical integration,expanding into LFP&ESS,balancing relationship with US&ChinaSHORT TERM:lowering growth expectations amid decline in profitability&market shareSK/JP COMPANIES HAVE BEEN RELYING ON US IRA

76、 TO PROP UP THEIR PROFITSSK/JPSUPPLIED BEVs LAGGING CHINESE COMPETITORSAccelerating vertical IntegrationBringing p/CAM production homeDiversifying technology portfolioBalancing US requirements&Chinese collaborationP.291 INDUSTRY|BATTERY REPORT 2024|Source:Content&analysis provided courtesy of CRU Gr

77、oup Distinguished Partner).For more information,visit https:/.INDUSTRY VALUE CHAIN|REGIONAL DIVERSIFICATIONAsian manufacturers are pivoting their strategies to capture overseas markets,where they can command higher marginsEurope and North America are working to nurture a domestic supply chain while

78、adopting policies to reduce reliance on ChinaThe higher costs and investment risks are deterring larger overseas investments Therefore,supply clusters are converging on what are seen as low-cost,low-risk countries like South Korea,Morocco,and Indonesia,to supply the major marketsWhere Integrated Sup

79、ply Chain Clusters Are FormingOPPORTUNITIESRISKSMAJOR EMERGING SUPPLY CHAIN CLUSTERS OUTSIDE CHINAP.301 INDUSTRY|BATTERY REPORT 2024|Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).Profit margin data from CRUs compilation of company reports.INDUSTRY VALUE CHAIN|PROFITAB

80、ILITYProfitability Has Been Redistributed Across The Value ChainUpstream miner and refiners margins show significant divergence in 2024 as prices hit the cost levels of marginal producers.Battery producers continue to reap the benefits of falling raw material prices.While vertically integrated midst

81、ream producers can leverage profits from mining and refining to reduce p/CAM prices,non-integrated producers are suffering from the slowdown in demand for NMC and export customers,and are losing market share.They are increasingly reduced to a tolling role,with margins set by battery makers.LFP produ

82、cers,especially non-integrated ones,are suffering higher losses due to the intense competition and strong bargaining power of battery producers.Chinese p/CAM and battery producers generally have higher margins than ex.China companies due to their cost competitiveness.NONINTEGRATED MIDSTREAM PRODUCER

83、S FACE PROFITABILITY CHALLENGESGross profit margin in 2024 Q2 and y/y change,%P.31BATTERY REPORT 2024|1 INDUSTRY|INDUSTRY VALUE CHAIN|ACQUISITIONS AND CONSOLIDATION2024 saw significant industry consolidation and acquisition,driven by companies exiting markets,seeking buyers during financial struggle

84、s,entering new sectors,expanding supply chains for critical materials,or boosting production capacities.Komatsu acquires American Battery Solutions.Rio Tinto acquires Arcadium Lithium for$6.7 billion to bring in lithium businessVolvo Cars to fully acquire Novo Energy by invoking redemption rights fr

85、om NorthvoltUltralife acquires Electrochem Solutions to strengthen medical/industrial solutions.Pure Lithium acquires Dimien assets focusing on vanadium cathode materials.EnerSys acquires Brentronics for military and industrial batteries.Arcadium Lithium acquires Li-Metals IP and physical assets for

86、$11 millionVolvo acquires Proterras battery unit for battery pack manufacturing/assembly capacity.Enerpoly acquires Nilar to boost zinc-ion battery production capabilities with Nilars line.LionVolt acquired AMTE Powers battery cell production line in ScotlandAcquisitions And ConsolidationP.321 INDUS

87、TRY|BATTERY REPORT 2024|Note:Non-exhaustive listINDUSTRY VALUE CHAIN|COMPANY BANKRUPTCIESIn 2024,the battery industry faced significant financial challenges,leading to several notable bankruptcies and restructurings.Several factors,lowering system prices and performance from China,including a growin

88、g difficulty to scale in the West and a challenging investment environment.Struggled with scalability and the costs of their Zn-Br flow battery technology and competitiveness of Li ion batteriesSupply chain issues,production delays and recalls of their Ocean vehicleProduction hurdles,lack of demand,

89、and struggles to compete with larger EV makers,rebranded as Nu Ride Financial strains in scaling operations led to shut down operations.High production costs,quality issues,access to specialist workforce,and competition in the battery market(see Deep Dive)Decreased demand for some of its battery pro

90、ducts and high debt levels=restructuringFiled for bankruptcy,blaming a challenging fundraising environment and thwarted plans to expand into manufacturing.Received creditor protection in Quebec and expected to file for bankruptcy protection in the US Filed for bankruptcy in 2023 and dissolved in 202

91、4 due to insufficient funding,poor strategic planning,and lack of experience.Converted to a data center.Failed due to financial instability,bureaucratic hurdles,lack of technical partnerships and planning.Company BankruptciesP.331 INDUSTRY|BATTERY REPORT 2024|INDUSTRY VALUE CHAIN|COMPANY BANKRUPTCIE

92、SUnpacking The Timeline Of Northvolts Bankruptcy Proceedings Sources:Bloomberg,company releases,DebtwireDebt structures estimates per Bloomberg 01/19/2024)and company notices1)non-recourse indicates that in the event of default at the entity level,the lender do not have the authority to pursue colla

93、teral from the parent company(Northvolt AB;2 Per of the 2023 annual report filing;3 Northvolts flagship battery gigafactory located in Skellefte,SwedenOn November 21st,Northvolt AB filed for chapter 11 bankruptcy protection.The company remains in operation as the stakeholders continue to work throug

94、h a resolution BMW canceled order for EUR2bn of batteries Announced strategic review of businessNorthvolts subsidiary ETT Expansion3 files for bankruptcy$300mm provide by undisclosed investors to Northvolt AB as rescue financing to give more time to stabilize the companyNorthvolt AB files for Chapte

95、r 11 bankruptcy.Liquidity situation becomes dire with just a few weeks of liquid assets Peter Carlsson steps down as CEO$100mm in debtor-in-possession financing securedGoldman Sachs Asset Management writes off$900mm investment in NorthvoltAppoints Markus Dangelmaier as CEO of Northvolt ETTMarketing

96、medium term financing to provide runway after restructuring.Northvolt owners vote to stay operating while seeking financial rescueNorsk Hydro to buy remaining shares in battery recycler from NorthvoltJUNE 2024NOVEMBERJULY OCTOBERJANUARY 2025DECEMBERNORTHVOLT AB$5bn non-recourse PF green loan1 Northv

97、olt ETT ABNorthvolt ETT Expansion AB 20 Other EntitiesNorthvolt DreiEUR900mm in subsidies from German governmentNon-recourse/Limited recourse subsCORPORATE STRUCTURE Entity Notable Financing OthersEquity Ownership2Debt Structure2P.341 INDUSTRY|BATTERY REPORT 2024|Source:Northvolt Sustainability Repo

98、rts 2022 and 2023,Northvolt Production NumbersINDUSTRY VALUE CHAIN|CASE STUDY NORTHVOLTNV LaunchedRecycling Program3 Factories In DevelopmentEtt ConstructionRevoltHydrovoltAuroraFirst CellNOVOFemDreiFirst Customer DeliveryNo revenue or cash flow figures reported after 2023 Battery SystemsCubergSixSo

99、dium-IonBMW 2B Order CancelledEtt Production DelayExplosion at Ett FactoryNorthvolts ambitious expansion strategy in a knowledge-constrained and capital-intensive industry revealed critical missteps:A lack of focus on core business segments led to overstretched resources and operational inefficienci

100、es.Each funding round was paired with a new program or product launch,further diluting focus and straining capacity.Severe labor shortages exacerbated challenges,with only 200 staff managing three factories under development.Loan structures with rising interest rates starting in 2024 demanded discip

101、lined execution,which was hindered by competing priorities and insufficient workforce support.Northvolt Financials And Production Execution IssuesP.351 INDUSTRY|BATTERY REPORT 2024|Sources:Northvolt sustainability reports 2022,and 2023,and PitchBook.Exchange rate on March 10,2021 1 SEK 0.11791 USDIN

102、DUSTRY VALUE CHAIN|CASE STUDY CUBERG ACQUISITIONThe impact of Northvolts Cuberg acquisition has been difficult to assess due to lack of purchase price disclosure until now:Purchase price(“Cash consideration paid)was USD$11.2 million cash,USD$14.8 million including debt assumption(“Forgiven notes)of

103、USD$3.6 million.Equity(“Shares issued,at fair value)and earn-out Earn-out payment)are non-cash considerations.Annualized burn rate of USD$6.9 million for 2021 with a headcount of 56.Total cash losses to Northvolt from the Cuberg acquisition estimated to be USD$78 million from 2021 to 2024 when it wa

104、s shut down months prior to the bankruptcy announcement.Cuberg failed to deliver a viable commercial product that could have been a category leader;Cuberg failed to deliver on the promise of drop-in li-metal production lines for existing facilities and equipment;Cuberg failed to deliver on its advan

105、ced R&D initiative to Northvolts broader operationsCuberg could have played a vital role in Northvolts operational success but was an early casualty leading up to bankruptcy.P.361 INDUSTRY|BATTERY REPORT 2024|INDUSTRY VALUE CHAIN|CASE STUDY BRITISHVOLT BRITISHVOLT FAILURE TO MEET MILESTONES LACK OF

106、INVESTMENTFounded in 2019,Britishvolts gigafactory plans were doused when the company underestimated CAPEX and investor appetite.The original plan was to build a 30GWh factory in Northumberland,UK and had$2.5 billion in funding promises in hand including a 100 million commitment from the U.K.governm

107、ent.Founders did not have electric vehicle experience and did not secure the 3.8 billion needed to complete the Northumberland plant when the company broke ground in 2021.Failure to meet milestones and excessive spending led to funding difficulties:Construction was halted in August 2022 and the U.K.

108、government declined to advance 30 million in funding in October 2022.Britishvolt went into administration in January 2023 and was acquired by Australia-based Recharge Industries the following month.202420222021In April 2024,plans to restart plant construction failed and the Northumberland site was s

109、old to the Blackstone group,a US private equity firm,for 110 million to be redeveloped into a data centre.2023Sources:Linked above to various news articlesP.371 INDUSTRY|BATTERY REPORT 2024|Sources:Linked above to various news articlesINDUSTRY VALUE CHAIN|CASE STUDY VARTAVARTA AG Approved A Financia

110、l Restructuring Plan,Secures Investment From PorscheThe 130-year-old German-based company became heavily indebted and began a financial reorganization under the German Corporation Stabilization Act StaRUG)in June 2024 Varta produces a wide variety of battery technologies that have seen declines in m

111、arket demand but the companys subsidiary,V4Drive,produces large format lithium-ion batteries used in some Porsche vehicles As a result of the reorganization,the companys shares were delisted from the Frankfurt stock exchange at zero value and its 485 million debt was reduced to 200 millionA longtime

112、 investor in the company and Porsche AG invested 60 million with the latter gaining a 50%stake in Varta AG and a 70%stake in the V4Drive subsidiaryP.38Sponsored ContentBATTERY REPORT 2024|SPONSORED CONTENT IONTRAP.39BATTERY REPORT 2024|1 INDUSTRY|1 INDUSTRYOVERVIEWP.40Notable EventsIndustry Value Ch

113、ain Finance Costs Cell&Pack Manufacturing Applications Electric Vehicles EVBattery Energy Storage Systems BESSOtherSafety Legal Chemistry CathodeAnodeElectrolyte&SeparatorSolid StateLithium-SulphurNon-Lithium ChemistriesSupply Chain&Raw Materials Recycling&Reuse SoftwareBATTERY REPORT 2024|1 INDUSTR

114、Y|Battery investments encompass a wide wide array of sub verticals,including chemistries,production equipment,software,battery facilities,and more.Throughout 2024,certain key trends emerged:SLOWER FUNDRAISING ENVIRONMENT 2024 saw a slower pace for VC/PE funding,driven by fewer megarounds,which were

115、a dominant feature from 2020 to 2023.PUBLIC AND PRIVATE FUNDING SOURCES FOR INFRASTRUCTURELarge debt and grant funding supported the growth of battery infrastructure.Notable debt raises in 2024 included,Northvolt ETT ABs 5bn green offering in Jan,Verkor 1.3bn offering in May,and ACC 4.4bn offering i

116、n Feb.Additionally,government loans and grant programs continue to provide attractive terms for capital intensive investments.Notable transactions include the DOEs$9.6bn loan to BlueOval SK,the 1.5bn EU grant to ProLogium,and the 900mm subsidy offered by the german government/EU to Northvolt Drei.MA

117、CROECONOMIC TRENDS AND RECENT DEVELOPMENTSAcross 2024,the battery investment landscape has been shaped by macroeconomic factors including the current interest rate environment,governmental support,and geopolitical tension.Company specific tensions emerged as management teams focus on balance sheet h

118、ealth given slower industry growth lead to weaker P&L.Investment Landscape Overview FINANCE|INVESTMENT TRENDS|INVESTMENT LANDSCAPESource:https:/dealroom.co/guides/fbc-uk-battery-study-20241 Annualised as of July 4th VC FUNDING AMOUNTNUMBER OF VC ROUNDS11P.41BATTERY REPORT 2024|1 INDUSTRY|The fundrai

119、sing surge in 2022 allocated a large amount of uninvested capital(aka dry powder)to climate focused investments.From 2022 through H1 2024,increasing dry powder indicated that investors were raising capital more quickly than they were deploying as climate-focused funds marketed newer vintages.In Q3 2

120、024,dry powder peaked at$93bn.The environment shifted in Q4 as investors start to deploy capital more quickly than it was being raised.Investors have slowed the pace of deployment,with the 2022 fund vintage deploying just 43%of its capital within two years,compared to 60%for 2020 vintages.Recent fun

121、ds benefit from lessons learned through previous investments,resulting in more rigorous due diligence processes and greater selectivity in investment choices.FINANCE|INVESTMENT TRENDS|CLIMATE TECH DRY POWDER Climate Investors Begin Deploying Dry Powder P.42$86Bn of Investible Dry Powder for ClimateD

122、ry powder and new Assets Under Management AUM)by quarter,20212024 YTD$bnContent&analysis provided courtesy of Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|Battery technology investments(excluding energy storage)shrank by 74%YoY,as battery-focused

123、 investments within the energy and transportation space were deprioritized in favor of sectors like nuclear and aviation.Macroeconomic and policy uncertainties further dampened investment sentiment,including delayed U.S.IRA fund rollouts,global political uncertainty,and a higher cost of capital.FINA

124、NCE|INVESTMENT TRENDS|BATTERY TRENDS2024 Battery Technology VC InvestmentsUnlike the precedent boom years,2024s funding environment prioritized capital efficiency and milestone-driven financing,with many late-stage rounds blending venture,grants,and debt.BATTERY TECHNOLOGY INVESTMENTS BY SECTORBATTE

125、RY TECHNOLOGY INVESTMENTS BY STAGEP.43Content&analysis provided courtesy of Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|FINANCE|INVESTMENT TRENDS|BATTERY CUMULATIVE INVESTMENTS With rising geopolitical tensions and trade restrictions on Chinas b

126、attery supply chain,investments are increasingly focused on localizing manufacturing and supply chains(e.g.U.S.and EU battery gigafactories,anode/cathode production),further expanding the largest sector in the battery value chain pictured on the left.Increased policy support,such as regulations in t

127、he EU Battery Regulation mandates and extended producer responsibility EPR frameworks,attracted additional capital to closed-loop battery recycling in addition to solely new cell manufacturing.5Year Cumulative VC Capital Deployment In Battery Technology By Sector)P.44Content&analysis provided courte

128、sy of Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|Energy storage investments rebounded strongly in 2024,up 184%YoY,This resurgence was driven by growing need for grid hardening and generous state capacity programs incentivizing installation.FINA

129、NCE|INVESTMENT TRENDS|ENERGY STORAGE TRENDS 2024 Energy Storage InvestmentsVenture capital funding in energy storage also saw a shift toward later-stage investments,with Series C and growth-stage deals increasing,while early-stage deal sizes remained relatively stable.Investors appear to be prioriti

130、zing companies with clear commercial pathways.ENERGY STORAGE INVESTMENTS BY SECTORENERGY STORAGE INVESTMENTS BY STAGEP.45Content&analysis provided courtesy of Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|FINANCE|INVESTMENT TRENDS|ENERGY STORAGE C

131、UMULATIVE INVESTMENTS 5Year Cumulative VC Capital Deployment In Energy Storage By Sector)Long duration energy storage LDES,particularly electrochemical storage,has been the primary focus of VC investments,amounting to over$2B in the period of 20202024$1.2bn to Form Energy alone).LDES and non-lithium

132、 chemistries(such as flow batteries and sodium-ion)have gained traction alongside investments in manufacturing and supply chain localization.Increased interest in LDES is largely a result of challenges faced by lithium cells in grid hardening applications where battery power may be required for 10 h

133、ours.P.46Content&analysis provided courtesy of Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|Categories Incumbent BatteryLithiumBattery StartupEV Startup2EV Charging1Key DriversSlow Demand from EV OEMs in 2024 with preference for Hybrid EVs.Optimi

134、sm from new battery product launches featuring higher energy density and lower costsLCE spot price is down 30%from the beginning of the year.Softening Li demand has led Miners to reduced CapEx plans to right size P&LHigh CapEx for battery factories and mixed customer offtake termsOperating below pro

135、fitability inflection point while battling lower EV demandLow utilization,unforeseen maintenance issues,and poor user experienceConstituentsPublic Market PerformanceConstrained demand for EVs continues to drag on public market performance of battery companiesSource:CapIQ1/1/2025 Indexes are market c

136、ap weighted.1 August 2024 Tritium acquired by Exicom;2 Fisker was delisted in March 2024FINANCE|PUBLIC MARKET|2024 PERFORMANCE%change from 1/1/2024INCUMBENT BATTERYBATTERY STARTUPEV CHARGINGEV STARTUPLITHIUMP.47BATTERY REPORT 2024|1 INDUSTRY|SPAC Performance Source:CapIQ1/01/20251 Jan 2023,announced

137、 that Shell would acquire Volta 2Nov 2023,Proterra sold to Volvo and Phoenix Motors 3 Dec 2024,Lion ELectric CCAA restructuring process in progress(1)(2)Slower growth for EV mobility,underperformance relative to management guidance,and sizable capital expenditures has weighed on battery SPAC perform

138、ance.All tracked battery stocks except one are trading at a discount to the$10 Par Value.Across the tracked SPAC,companies are down 33%FY2024 relative to the S&P which is up 23%20202021202220242023(3)(Performance relive to par price)FINANCE|PUBLIC MARKET|SPACP.48BATTERY REPORT 2024|1 INDUSTRY|FINANC

139、E|TRANSACTIONS|TOP TRANSACTIONS IN 2024DilutiveNon-DilutiveNote:Box sizes made by converting other currency to USD at 1/1/2025The list is not comprehensive of all transaction in 2024 1 As of September 2024$87m$82m|Sep5B|Jan$2.2B|Jan 1.3B May$950m Feb902mJan557mMay$430mDec$405mOct$375m Jun$225m|Jan$2

140、00m|Sep165m|Aug$162mFeb$145mFeb$136mJun$107mFeb100|Mar$100m|Aug$80m|Sep$78m$75m$318m|Oct$491mOct$1.1BMar$3B1DOE Federal Funds$9.6B|Dec4.4B|FebSelect Dilutive And Non-Dilutive Transactions In 2024$75m$73mP.49BATTERY REPORT 2024|1 INDUSTRY|Source:TechCrunch1 As of September 2024DOE Federal Funds In Ba

141、ttery TechnologyFINANCE|TRANSACTIONS|FEDERAL FUNDINGSELECT DOE LOANS IN THE BATTERY VALUE CHAIN1$50m$50m$55m$125m$150m$67m$200m$150m$100mSKI US Inc.$150m$145m$126m$50m$55m$225m$124m$100m$166m$100m$60m$200m$150mSWA Lithium$225m$166m$198mYTD September 2024,the DOE has allocated$3B to battery technolog

142、y in the form of grants/loans.The government grants and loans support the entire battery supply chain,from mineral extraction to recycling.The largest investment in 2024 by the DOE was issued to BlueOval SK in the amount of$9.6B in late December.2 As of January 2025,there are over 160 DOE applicants

143、,across all sectors,seeking over$200B in loan proceeds.RAW MATERIALSSEPARATION&PROCESSINGCOMPONENT MANUFACTURINGBATTERY MANUFACTURINGRECYCLINGP.50BATTERY REPORT 2024|1 INDUSTRY|Private Capital Market InvestorsFINANCE|PRIVATE CAPITAL MARKETS|INTRO$150bn of total private climate assets under managemen

144、t AUM)across 300 Early-stage VCs,Corporate VCs,Growth Equity,Infrastructure,and Private Equity funds since Jan 2021.1INVESTOR TYPEEARLY STAGE VCCORPORATE VCLATE STAGE VC/GROWTH EQUITYPRIVATE EQUITYINFRASTRUCTURESOVEREIGN WEALTH FUND/PENSIONInvestment CharacteristicEarly-Stage venture investments int

145、o pre-revenue/pre-product fit companies Seed Series AEarly-Stage investments.Likely synergies with VCs corporate parent.Corporate VC helps in validating new technologies Revenue generating companies pre-earnings with revenue backlogSeries B Series DControl investments into mature companies with defi

146、ned cash flow profile and clear customer relationshipsAsset heavy project based financing supported by long term offtake contractPatient long term investors with a national mandate to progress climate sustainability Investor Base climate-related investment fundClean Energy TransitionTechnology Ventu

147、resClimate Innovation FundVale VenturesP.51Syensqo Ventures1 Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|Funds Raised In The Last 4 Years-Financial VCs And Corporate VCs Content and analysis provided courtesy of Sightline Climate Distinguished P

148、artner).For more information,visit https:/ As of 7 november 2024FINANCE|PRIVATE CAPITAL MARKETS|VC AND CVC 2021202220232024120212022202320241From 2021 to 2024,the climate capital stack has matured,with increasing specialization and diversity across funding stages.Early-stage funds have consolidated,

149、while growth and infrastructure funds have expanded significantly and now dominate with$56B of deployable dry powder,focusing on low-risk,mature technologies,reflecting a shift toward disciplined and strategic capital allocation.This growing sophistication across all stages ensures a more robust cli

150、mate tech ecosystem capable of addressing a wider range of technological and scalability challenges.P.52BATTERY REPORT 2024|1 INDUSTRY|Funds Raised In The Last 4 Years-Growth Equity/PE And InfraFINANCE|PRIVATE CAPITAL MARKETS|GROWTH EQUITY/PE AND INFRAFrom 2021 to 2024,the climate capital stack has

151、matured,with increasing specialization and diversity across funding stages.Early-stage funds have consolidated,while growth and infrastructure funds have expanded significantly and now dominate with$56B of deployable dry powder,focusing on low-risk,mature technologies,reflecting a shift toward disci

152、plined and strategic capital allocation.This growing sophistication across all stages ensures a more robust climate tech ecosystem capable of addressing a wider range of technological and scalability challenges.2021202220232024120212022202320241P.53Content and analysis provided courtesy of Sightline

153、 Climate Distinguished Partner).For more information,visit https:/ As of 7 november 2024BATTERY REPORT 2024|1 INDUSTRY|FINANCE|PRIVATE CAPITAL MARKETS|FUNDS RAISED IN 2024New Funds Raised In 2024 Note USDEUR converted at 1/1/2025 More than$40bn of capital allocated towards climate and energy transit

154、ions announced in 2024,with 96 new funds,down 6%from 2023s record.1$1.2BNJANUARYInvests in Climate Infrastructure$335MMJANUARYEarly growth-stage climate$1.5BNFEBRUARYLow-carbon infrastructure$10.0BNFEBRUARYGlobal energy transition fund 1.1BNFEBRUARYFocuses on digitization and decarbonization$300MMFE

155、BRUARYClimate technologies$2.7BNAUGUSTInvest in power and energy infrastructure$240MMSEPTEMBERSustainable infrastructure$1.37BNNOVEMBERRenewable energy,grid,and data centers$500MMOCTOBERInfrastructure solutions across climate 700MMOCTOBERInvests in decarbonization solutions$300MMOCTOBERFocuses clima

156、te tech companies$4.9BNOCTOBERFocuses on climate tech verticals$5.0BNSEPTEMBEREmerging markets climate fund$1.4BNAPRILInvests in Climate debut fund$306MMAPRILInvest in deep tech and hardware startups$385MMAPRILClimate innovation 3.0BNMARCHInvests in climate and health$305MMMAYdecarbonization solutio

157、ns350MMJANUARYInvests in tech and climate startups 700MMJULYDecarbonization and sustainability solutionsP.541 Sightline Climate Distinguished Partner).For more information,visit https:/ REPORT 2024|1 INDUSTRY|Note:funding numbers are as of January 2024 FINANCE|PRIVATE CAPITAL MARKETS|FOCUS ON 2023 M

158、EGA FUNDS2023 Mega Fund Private Capital AnnouncementsClose/ReleaseSpring 2023Summer 2023Winter 2023Spring 2022Summer 2023Summer 2023Spring 20232023 Fund Size$4bnN/A$1bn$7.3bn$1.5bn$700mm$1bnMandateInvest into a diversified global portfolio of yield and hybrid investmentsFocused on decarbonization as

159、 an overarching theme rather than a specific asset classPositioned to address the significant gaps that exist in the capital markets for climate and transition financingInvestment scope includes scaling battery technologies,EV fleet electrification and EV Charging,decarbonizing agriculture and steel

160、The funds mandate is“climate which encompass decarbonization of sectors like transportation,food,and industryDeploy capital exclusively for emerging and developing marketsSupporting the four key pillars that underpin COP28s Action Agenda:Energy Transition,Industrial Decarbonization,Sustainable Livin

161、g and Climate TechnologiesInvests in energy transition,green mobility,sustainable fuels and sustainable molecules,and Carbon SolutionsGrowth-stage investments in innovative climate solutionsFunds performance fee dependent on ability to deliver on greenhouse gas abatement goals Focused on hard to aba

162、te sectors which include energy,mobility,industry and buildings in order to generate outsized emissions abatement in the next decadeProvide growth capital to companies that drive/enable the growth of renewable energy,the electrification of transport,the efficient use of energy and resources and the

163、management/reduction of carbon emissionsFocused on real assets within the energy transitionFocused on investments in growth-stage companies that will seek to collectively avoid or remove one gigaton of carbon dioxide-equivalent CO2e emissions from the Earths atmosphereGlobal ClimateEmerging Markets

164、TransitionClean Energy TransitionMega-funds$500M account for 19%of funds in 2023 by count,but constitute 70%of total AUM1GT climateP.55BATTERY REPORT 2024|1 INDUSTRY|AMOUNTRAISED1$4bn$3bnN/A$5.0bn2$1.5bn$700mm$750mm3FUND INVESTMENTSOne Year Later And The Largest Climate Funds Of 2023 Have Begun Caut

165、iously Deploying Capital2 Represents TPG Rise Climate Fund II3 Targeted$1bn,closed at$750mmFINANCE|PRIVATE CAPITAL MARKETS|FOCUS ON 2023 MEGA FUNDSGlobal ClimateEmerging Markets TransitionClean Energy Transition1GT climateRebranded as Catalytic Transition Fund.Targeting a$5bn raiseFund 2Battery Rela

166、ted Investment LEGEND Still Fundraising https:/www.bnnbloomberg.ca/investing/commodities/2024/12/19/blackrock-writes-down-flagship-renewable-fund-overhauls-leaders/Fund 12024 investmentsAll but one of the funds focused on climate investment have acquired an interest in a battery related investmentP.

167、56Sources:Press Releases,Sightline Climate Distinguished Partner);1 Some fund sizes adjusted from the previously announced amountBATTERY REPORT 2024|1 INDUSTRY|1 INDUSTRYOVERVIEWP.57Notable EventsIndustry Value Chain Finance Costs Cell&Pack Manufacturing Applications Electric Vehicles EVBattery Ener

168、gy Storage Systems BESSOtherSafety Legal Chemistry CathodeAnodeElectrolyte&SeparatorSolid StateLithium-SulphurNon-Lithium ChemistriesSupply Chain&Raw Materials Recycling&Reuse SoftwareBATTERY REPORT 2024|1 INDUSTRY|Section Summary-Cost Reduction Is Now Priority#1 Throughout The Battery Value ChainCO

169、STS|SUMMARY KEY TAKEAWAYSBattery manufacturers and automakers are prioritising cost reduction as the main survival mechanism in a market with tight margins and intense price competition.Battery prices in China are now low enough to drive profound demand,but only the lowest-cost producers will surviv

170、e.New manufacturers in Europe and North America face several barriers in basic manufacturing efficiency and quality.Given this,the Western battery industry continues to consist of the Asian incumbents.The situation for battery manufacturing costs can currently be characterised by three challenges th

171、at producers are facing along the value chain:OVERCAPACITY across the entire supply chain,resulting in pullback of investments.COST REDUCTION efforts because of shrinking margins and intensifying competition.DIVERSIFICATION into new markets,driven by rising protectionism and domestic competition.P.5

172、8Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.BATTERY REPORT 2024|1 INDUSTRY|Battery Manufacturing Costs Continue To Fall In 2024COSTS|2024 CELL COSTSAverage cell production costs have fallen steeply since 2022,driven by plummeting

173、material prices,especially that of lithium carbonate,CAM,and AAM.Low material prices have been driven by overcapacity and oversupply.Initially cost reductions were driven by incremental improvements in manufacturing efficiency and cell design,but processes are now so well-optimised that,for example,

174、LFP costs closely follow the price of lithium carbonate.P.59Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.LCE Lithium Carbonate Equivalent.BATTERY REPORT 2024|1 INDUSTRY|Battery Industry Overcapacity Has Led To Low Selling Prices And

175、 Shrinking Profit MarginsCOSTS|OVERCAPACITY IN BATTERY INDUSTRYAlongside falling production costs,average selling prices have fallen in 2024 for Chinese made batteriesThe driving factor behind this is the large overcapacity that has emerged,with more cells being produced than can be consumedThis lea

176、ds to manufacturers selling at or below production costs to maintain competitiveness and market share,pushing prices to new lowsOVERCAPACITY WAS ONE OF THE BIGGEST DRIVERS BEHIND BATTERY PRICE DECLINES IN 2024BATTERY MARGINS ARE BEING SQUEEZEDP.60Source:Main content provided by BloombergNEF Distingu

177、ished Partner),ICCSino LFP cell spot price).Cell cost and price is based on a prismatic cell and excludes taxes.BATTERY REPORT 2024|1 INDUSTRY|Battery Pack Prices See Largest Drop Since 2017COSTS|BATTERY PACK PRICESAverage Li-ion battery pack prices dropped 20%from 2023 to a record low of$115/kWh in

178、 2024.Factors driving the decline include:Cell manufacturing overcapacityEconomies of scale and reductions in underlying costs from incremental manufacturing improvements such as yield/qualityLow raw material and component pricesAdoption of lower-cost LFP batteriesSlowdown in EV sales growthNote:Pri

179、ces vary widely across different countries and application areas.VOLUMEWEIGHTED AVERAGE LIION BATTERY PACK AND CELL PRICE SPLITP.61Source:Content&analysis provided courtesy of BloombergNEF Distinguished Partner).Note:historical prices have been updated to reflect real 2024 dollars.Weighted average s

180、urvey value includes 343 data points from passenger cars,buses,commercial vehicles,and energy storage.BATTERY REPORT 2024|1 INDUSTRY|How Are Chinese Manufacturers Achieving Super-Low Production Costs?COSTS|SUPERLOW PRODUCTION COSTSIn recent times,battery costs are mitigated in three main areas:1.Man

181、ufacturing excellence2.Supply chain efficiencies3.Technical innovation#1 is the foundation for all companies.#2 and 3 give top manufacturers an additional edge over rest of the industry.TOP MANUFACTURERS ARE IN A LEAGUE OF THEIR OWNSUPPLY CHAIN EFFICIENCIES GO HANDINHAND WITH MANUFACTURING EXCELLENC

182、EP.62Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.Model is showing an EV(power)cell,prismatic,synthetic graphite anodeBATTERY REPORT 2024|1 INDUSTRY|Costs Are Higher Outside China,Partly Due To Inherent DisadvantagesCOSTS|HIGHER COS

183、TS OUTSIDE CHINAHigher cost of production outside China is influenced by:Initially lower yields and factory automationDifferences in energy and labour costsHigher margins commanded by suppliersImport tariffs and local premiums on raw materialsall of which can be mitigated!YIELDS AND AUTOMATION ARE I

184、NITIALLY LOWER FOR NEW GIGAFACTORIESEVEN IF A STATEOFTHEART CHINESE FACTORY WAS TRANSPLANTED INTO EU/US,ENERGY AND LABOR COSTS WILL IMPACT ECONOMICSModel parameters:Same yields,factory automation,material margins No import tariffs or local premiums on materials Region-average energy prices CAM and A

185、AM made locallyP.63Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.BATTERY REPORT 2024|1 INDUSTRY|Automation And Yields Critical For USA Cost-CompetitivenessMODELED LFP BATTERY CELL MANUFACTURING COSTS IN USA,2024$/kWhP.64COSTS|PATHWAY

186、S TO COSTEFFECTIVENESSSource:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.BATTERY REPORT 2024|1 INDUSTRY|Electricity Price And Automation Key For Factories In Europe COSTS|PATHWAYS TO COSTEFFECTIVENESSMODELED LFP BATTERY CELL MANUFACTURING

187、 COSTS IN EUROPE,2024$/kWhP.65Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.BATTERY REPORT 2024|1 INDUSTRY|The Battery Conundrum-Joint Venture Or Go It Alone?Battery manufacturing is very difficult,with low scrap rates and high throu

188、ghputs are needed to be profitable.So far,new manufacturers who chose to go it alone have seldom survived.Joint ventures with an experienced producer have been the most successful strategy.This is critical to rapidly decrease the time to ramp-up and increase customer confidence in the quality and re

189、liability of supply.Although Chinese-origin companies are now increasingly willing to work with local partners,they along with the Chinese government are making a concerted effort to avoid the leakage of critical technical know-how.COSTS|IMPORTANCE OF JOINT VENTURESJOINT VENTURES CAN DECREASE TIME T

190、O PROFITABILITYP.66Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.Modeling an EV(power)cell with synthetic graphite anode.BATTERY REPORT 2024|1 INDUSTRY|LFP Production Costs Have Further Room To FallCOSTS|LFP COSTS HAVE FURTHER ROOM T

191、O FALLCHEAPER RAW MATERIALS,OPTIMISING ELECTROCHEMICAL PERFORMANCE,&INCREMENTAL IMPROVEMENTS TO MANUFACTURING PROCESSESLFP BATTERY CELL MANUFACTURING COSTS IN CHINA,2024$/kWhP.67Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.Modeling

192、an EV(power)cell with synthetic graphite anode.BATTERY REPORT 2024|1 INDUSTRY|LxFP Retains Cost Advantage Over Nickel-Rich BatteriesNMC 811 remains the most expensive chemistry compared to LxFP and emerging NMC based chemistries,despite falling nickel and cobalt prices.Medium-nickel high-voltage NMC

193、 has emerged as a lower-cost alternative to high-nickel NMC while offering comparable energy density.The LxFP family,due to the absence of expensive raw materials and more efficient lithium utilisation,are leading the way for low production costs.High-compaction-density LFP cathode material may enab

194、le cell cost reductions of up to 3%,continuing the trend of incremental improvements to incumbent chemistries.COSTS|CHEMISTRIESAVERAGE BATTERY CELL PRODUCTION COSTS,CHINA,2024$/KWHP.68Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.BAT

195、TERY REPORT 2024|1 INDUSTRY|1 INDUSTRYOVERVIEWP.69Notable EventsIndustry Value Chain Finance Costs Cell&Pack Manufacturing Applications Electric Vehicles EVBattery Energy Storage Systems BESSOtherSafety Legal Chemistry CathodeAnodeElectrolyte&SeparatorSolid StateLithium-SulphurNon-Lithium Chemistrie

196、sSupply Chain&Raw Materials Recycling&Reuse SoftwareBATTERY REPORT 2024|1 INDUSTRY|CELL&PACK MANUFACTURING|PRODUCTION OUTPUT There is still significant overcapacity and in the case of China overproduction compared to demand This is the reason for LFPs share being higher than in end-use demand Much o

197、f the battery requirements are imported from Asia as most gigafactories in the pipeline outside China are still ramping up The industry remains an oligopoly with the top 3 manufacturers making up 2/3 of outputBattery Manufacturing Grows Further Into The Terawatt-Hour-Per-Year Era IN 2024,GLOBAL LITH

198、IUMION BATTERY CELL PRODUCTION REACHED ALMOST 1.5 TWh59%4/5were LFP batterieswere EVbatterieswere madein China4/5P.70Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visit https:/.Battery production data from CRUs primary data collection,national ind

199、ustry associations,and manufacturer reports.December 2024 data is partially estimated.BATTERY REPORT 2024|1 INDUSTRY|CELL&PACK MANUFACTURING|PRODUCTION LOCALIZATIONMuch of Europe and North Americas battery supply are currently imported from Asia.But trade flows of batteries between regions are dampe

200、ning over time.There will be increasing localisation of battery production to where they are used,due to:Trade policy tariffs are increasing over timeSupply security automotive industry aiming to avoid a repeat of supply disruptionsCost and ESG transporting bulky batteries across regions is expensiv

201、e and emissions-intensiveAlthough other regions are ramping up their production bases,China will remain the largest battery producer.China Is The Battery Export Hub But Production Is LocalizingP.71Source:Content&analysis provided courtesy of CRU Group Distinguished Partner).For more information,visi

202、t https:/.Trade flows less than 1 GWh are not shown.Demand Destination refers to where the battery is installed.Total GWh represents end-use demand and does not show overproduction of battery cells.1 INDUSTRY|BATTERY REPORT 2024|P.722418111122415232182652522620191671413310USA1 ABF,Tucson,AZ,15 GWh)2

203、 Amprius Tech,Brighton,CO,5 GWh3 Electrovaya,Jamestown,NY,1 GWh4 AESC,Smyrna,TN,3 GWh5 AESC/BMW,KY,30 GWh)6 AESC/Mercedes,Florence County,SC,30 GWh)7 Ford/CATL,Marshall,MI,20 GWh)*9 Nanotech Energy,tbd,NV,6 GWh8 FREYR,Newnan,GA,34 GWh)10 IM3NY,Endicott,NY,1 GWh,37 GWh)*11 KORE Power,Buckeye,AZ,12 GW

204、h)12 LGES,Queen Creek,AZ,53 GWh)13 LGES,Holland,MI,5 GWh,20 GWh)14 Ultium Cells,LGES/GM,Lansing,MI,50 GWh)15 Ultium Cells,LGES/GM,Spring Hill,TN,35 GWh16 LGES/Honda,Jeffersonville,OH,40 GWh)17 Panasonic,DeSoto,Kansas,30 GWh)18 Panasonic/Tesla,NV,37 GWh,73 GWh)19 Samsung SDI/GM,New Carlisle,IN,2736 G

205、Wh)20 2 plants)StarPlus Energy Samsung SDI/Stellantis),Kokomo,IN,33 GWh&34 GWh)41424344452728293031323321 SK,Commerce,GA,22 GWh22 BlueOval SK/Ford),Stanton,TN,45 GWh)23 SK/Hyundai,Bartow County,GA,35 GWh)24 Tesla,Fremont,CA,10 GWh25 Toyota,Greensboro,NC,30 GWh)26 LGES/Hyundai,USA,30 GWh)27 Ultium Ce

206、lls,LGES/GM,Warren,OH,41 GWh29 Forge Battery,Raleigh,NC,13 GWh)30 SAFT,Jacksonville,FL,5 GWh31 Tesla,Austin,TX,6 GWh(94 GWh)32 ONE,Belleville,MI,10 MWh 20 GWh)33 Gotion,Manteno,IL,40 GWh)34 Lyten,San Jose,CA,0.2 GWh)35 Lyten,Reno,NV,10 GWh)36 2 plants)BlueOval SK/Ford),Glendale,KY,40 GWh&40 GWh)37 P

207、omega,Waterboro,SC,6 GWh38 Amplify Cell Tech,Marshall county,MS,21 GWh)39 Statevolt,near Salton Sea,CA,54 GWh)*40 Lyten,San Leandro,CA,610 GWh)CANADA41 LGES/Stellantis,Windsor,ON,49.5 GWh)42 PowerCo,St.Thomas,ON,90 GWh)43 Lion Electric,Joliet,QC,5 GWh*44 StromVolt,tbd,QC,10 GWh)45 Northvolt Six,Mont

208、real,QC,60 GWh)46 BlueSolutions,Montreal,QC,0.5 GWh47 Molicel,Maple Ridge,BC,2.8 GWh)*Gigafactory Tracker-1,372*GWh Of CapacityCELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|NORTH AMERICA3435363839946North America has experienced significant growth in the last 23 years due to IRA incentivesYet several p

209、rojects are struggling or remain elusive due to financial and political issues,including uncertainty around the future of the IRA471737How to read this mapBASIC FORMAT=Current Capacity GWh,(+Additional Future Capacity GWh)CONSTRUCTION AT RISK=(+Additional Future Capacity GWh)*CONSTRUCTION HALTED/BAN

210、KRUPTCY=(+Additional Future Capacity GWh)*total includes future¤t capacities;excludes plants with halted construction;takes the highest of future capacity ranges(if range exists)*note:sodium-ion excluded401 INDUSTRY|BATTERY REPORT 2024|P.73Source:All uncited factories are from Batteriezellprod

211、uktion:Europa gert ins HintertreffenCELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|EUROPEGigafactory Tracker-1,504*GWh Of CapacityFRANCE1 ACC,13 GWh,27 GWh)2 AESC,30 GWh)3 Verkor/Renault,50 GWh)4 Prologium,48 GWh)5 Tiamat,5 GWhGERMANY6 ACC,40 GWh)*7 CATL,14 GWh,10 GWh)8 Leclanche,4.5 GWh9 Northvolt Drei

212、,60 GWh)10 SVOLT,24 GWh)*11 SVOLT,16 GWh)*12 Tesla,50 GWh,50 GWh)13 PowerCo,20 GWh)14 Cellforce Group,20 GWh)15 Customcells,(+unknown GWh)16 EAS,0.5 GWhITALY17 ACC,40 GWh)*18 ITALVOLT,45 GWh)*19 FAAM,0.35 GWh,8 GWhPORTUGAL20 CALB,45 GWh)NETHERLANDS21 Eurocell,1 GWh SWEDEN22 Northvolt,16 GWh,44 GWh)*

213、23 NOVO Volvo,50 GWh)*HUNGARY24 CATL,100 GWh25 EVE Energy,28 GWh)26 Samsung SDI,40 GWh,10 GWh)27 SK,18 GWh,29.3 GWh)28 Sunwoda,(+unknown GWh)NORWAY29 Elinor,40 GWh)30 FREYR,29 GWh)*31 Morrow,unknown GWh 42 GWh)32 Beyonder,10 GWh)FINLAND33 Finnish Minerals,60 GWh)SPAIN34 AESC,50 GWh)35 PowerCo,60 GWh

214、)36 Basquevolt,unknown GWh 10 GWh)37 CATL/Stellantis,50 GWh)U.K.38 AESC,2 GWh,33 GWh)2930223181371293839143322034351761052726342454418323621234039 Agratas/Tata,40 GWh)40 Nanotech Energy,(+unknown GWh)41 Eve Energy,60 GWh)SLOVAKIA42 Gotion Inobat,20 GWh,20 GWh)43 ElevenEs,48 GWh)POLAND44 LGES,90 GWh,

215、25 GWh)CZECH REPUBLIC45 MES,1.2 GWh)TURKEY46 Siro,20 GWh)47 Maxxen,10 GWh)48 Pomega,2 GWh 4 GWh49 Reap Battery,5 GWh50 Ottomotive,5 GWh51 Ampherr,2 GWh52 Vestel,2 GWh53 Inovat,1 GWh54 Aspilsan,0.2 GWh 0.8 GWh)46475According to the Battery Atlas,current planned capacity shrunk by 473 GWh Several giga

216、factories have been halted due to weakened market demand,energy costs,or organizational issues.Germany,Sweden and Italy have especially been affected 242511374143484951191415162850525354How to read this mapBASIC FORMAT=Current Capacity GWh,(+Additional Future Capacity GWh)CONSTRUCTION AT RISK=(+Addi

217、tional Future Capacity GWh)*CONSTRUCTION HALTED/BANKRUPTCY=(+Additional Future Capacity GWh)*total includes future¤t capacities;excludes plants with halted construction;takes the highest of future capacity ranges(if range exists)*note:sodium-ion excluded1 INDUSTRY|BATTERY REPORT 2024|INDIA1 Re

218、liance,Gujarat,50 GWh)2 Amara Raja,Telangana,16 GWh)3 Exide,Karnataka,12 GWh)4 Godi,Hyderabad,12 GWh)5 OLA,Tamil Nadu,100 GWh)6 TATA,Gujarat,10 GWh)7 Lucas TVS/24M,Thervoy Kandigai,10 GWh)8 Cyngi,Telangana,1.2 GWh)9 JSW/LGES,India,10 GWh)10 Mahanagar/IBC Inc.,Bengaluru,(+unknown GWh)VIETNAM11 Gotion

219、,Vung Ang,5 GWhTHAILAND12 GPSC,Map Ta Phut,10 GWh)13 Amita Technology/Eve,Bang Pakong,4 GWh14 NV Gotion,Rayong,8 GWh15 24M/Novo+,Rayong,0.1 GWh)INDONESIA16 CATL,Karawang,15 GWh)17 Hyundai/LGES,Karawang,10 GWh 10 GWh)MALAYSIA18 EVE Energy,Kedah,(+unknown GWh)19 Samsung SDI,Seremban,unknown GWh,16 GWh

220、)20 Enovix,Seremban,(+unknown GWh)21 Zhuhai CosMX Battery,Seremban,(+unknown GWh)P.74Source:All uncited factories are from Batterieproduktion,India 1,India 2,ThailandGigafactory Tracker-437*GWh 5,796 from China)of CapacityCELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|GREATER ASIA1SOUTH KOREA22 Samsung

221、SDI,Cheonan,unknown GWh,12 GWh)23 LGES,Ochang,21 GWh 12 GWh)24 SK,Seosan,5 GWh25 Kumyang,Gijang,(+unknown GWh)JAPAN26 Prime Planet,Himeji,Japan,unknown GWh,(30 GWh)27 AESC,Kanagawa,2.6 GWh28 AESC,Ibaraki,18 GWh)29 Panasonic,Osaka,4 GWh30 Panasonic,Uchida,10 GWh31 Panasonic,Asonaka,(+unknown GWh)32 P

222、anasonic,Gunma,16 GWh)33 Electrovaya Tech,Japan,(+unknown GWh)34 Nissan,Japan,5 GWhTAIWAN35 ProLogium,Taoyuan,2 GWhCHINASee“Chinese Gigafactory Plants on the following page.23456111216182223242728293130813141517212019253310Greater Asia is experiencing growth from:An emerging Indian market Chinese ma

223、nufacturers localizing in low-risk ASEAN countries to circumvent trade barriers Japan and South Korea bolstering capacity to keep up with domestic demand35How to read this mapBASIC FORMAT=Current Capacity GWh,(+Additional Future Capacity GWh)*total includes future¤t capacities*note:sodium-ion

224、excluded792634321 INDUSTRY|BATTERY REPORT 2024|P.75Gigafactory Tracker-5,796*GWh Of Capacity|Part 1 Of 3CELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|CHINA ICATL1 Ningde,253 GWh,27 GWh)2 Yibin,126 GWh,144 GWh)3 Jining,180 GWh)4 Luoyang,30 GWh,90 GWh)5 Changzhou,118 GWh6 Xiamen,60 GWh)7 Guiyang,30 GWh,3

225、0 GWh)8 Yichun,50 GWh9 Zhaoqing,25 GWh10 Guangzhou,12 GWh,6 GWh11 Beijing,15 GWh)12 Xining,11 GWhCALB13 Xiamen,20 GWh,40 GWh)14 Changzhou,32 GWh,25 GWh)15 Hefei,20 GWh,30 GWh)16 Wuhan,20 GWh,30 GWh)17 Chengdu,20 GWh,30 GWh)18 Jiangmen,35 GWh,15 GWh)19 Meishan,20 GWhLGES20 Nanjing,139 GWh,6 GWhBYD/FI

226、NDREAMS21 Nanning,70 GWh22 Xuzhou,15 GWh,45 GWh)23 Yantai,50 GWh)24 Chongqing,35 GWh,10 GWh)25 Changchun,15 GWh,30 GWh)26 Wuhu,40 GWh27 Guiyang,25 GWh,15 GWh)28 Zhengzhou,40 GWh)29 Xian,32 GWh30 Yancheng,30 GWh31 Jinan,30 GWh32 Shaoxing,15 GWh,15 GWh)33 Wuhan,12 GWh,18 GWh)34 Xiangyang,10 GWh,20 GWh

227、)35 Xining,24 GWh36 Taizhou,22 GWh37 Changsha,10 GWh,10 GWh)38 Bengbu,10 GWh,10 GWh)39 Chuzhou,5 GWh,15 GWh)40 Fuzhou,15 GWh41 Shenzhen,14 GWh42 Huizhou,2 GWhSource:New Energy Terminal217292772124351219378403316341316363214530253122112334202838152642104191839How to read this mapBASIC FORMAT=Current

228、Capacity GWh,(+Additional Future Capacity GWh)*total includes future¤t capacities*note:sodium-ion excludedChina still dominates the battery industry,but new projects have slowed due to overcapacity.Companies like Gotion and Ganfeng mitigate this by securing the upstream supply chain,while othe

229、rs pivot to energy storage to offset the weaker EV battery market.1 INDUSTRY|BATTERY REPORT 2024|P.76Gigafactory Tracker-5,796*GWh Of Capacity|Part 2 Of 3CELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|CHINA IIGOTION HIGH TECH43 Hefei,14 GWh,44 GWh)44 Anqing,30 GWh,10 GWh)45 Liuzhou,15 GWh,15 GWh)46 Yich

230、un,10 GWh,20 GWh)47 Nanjing,28 GWh48 Luan,15 GWh,10 GWh)49 Tangshan,10 GWh,10 GWh)50 Chuzhou,10 GWh,10 GWh)51 Qingdao,3 GWhSVOLT52 Changzhou,18 GWh,47 GWh)53 Chengdu,31.5 GWh,28.5 GWh)54 Huzhou,15 GWh,15 GWh)55 Dazhou,30 GWh)56 Suining,20 GWh,9 GWh57 Maanshan,28 GWh58 Shangrao,24 GWh59 Yancheng,22 G

231、Wh60 Nanjing,15 GWhSUNWODA61 Jinhua,50 GWh62 Nanchang,36 GWh,14 GWh)63 Zaozhuang,24 GWh,26 GWh)64 Yichang,20 GWh,10 GWh)65 Nanjing,18 GWh,12 GWh)66 Deyang,20 GWhEVE ENERGY,SK ON67 Jingmen,146 GWh,43 GWh)68 Chengdu,20 GWh,50 GWh)69 Yancheng,10 GWh,30 GWh)70 Shenyang,40 GWh)71 Huizhou,24 GWh72 Qujing,

232、23 GWh73 Nantong,10 GWh74 Yuxi,10 GWh)75 Changzhou,7.5 GWhREPT76 Jiaxing,12 GWh,61 GWh)77 Wenzhou,26 GWh,24 GWh)78 Foshan,15 GWh,17 GWh)79 Chongqing,30 GWh)80 Liuzhou,10 GWh,10 GWh)HITHIUM81 Chongqing,28 GWh,33 GWh)82 Xiamen,45 GWh83 Heze,30 GWh)AESC84 Shiyan,20 GWh,20 GWh)85 Ordos,10.5 GWh,20 GWh)8

233、6 Cangzhou,10 GWh,20 GWh)87 Wuxi,5 GWh,15 GWh)CORNEX88 Xiaogan,60 GWh,90 GWh)89 Yichang,40 GWh,110 GWh)90 Wuhan,10 GWh,40 GWh)GREAT POWER91 Quzhou,11 GWh,36 GWh)92 Qingdao,36 GWh)93 Ulanqab,11 GWh)94 Liuzhou,10.5 GWh95 Xuancheng,10 GWh)96 Changzhou,3 GWh,4 GWh97 Zhuhai,unknown GWh98 Zhumadian,unknow

234、n GWhGANFENG99 Chongqing,44 GWh)100 Hohhot,20 GWh)101 Xiangyang,20 GWh)102 Xinyu,13 GWh,6 GWh103 Dongguan,10 GWh)104 Nanchang,10 GWh)FARASIS105 Ganzhou,37 GWh,12 GWh)106 Guangzhou,15 GWh,15 GWh)107 Zhenjiang,24 GWh108 Kunming,24 GWh)1128380101541005679997163497285737410867905984518682667755696489878

235、868538110610378484446707510750105479652601119445929165436157957693104102PYLON109 Yangzhou,8 GWh110 Hefei,5 GWh,5 GWhSAMSUNG SDI111 Xian,unknown GWhPANASONIC/PPES112 Dalian,15 GWh6258Source:New Energy TerminalHow to read this mapBASIC FORMAT=Current Capacity GWh,(+Additional Future Capacity GWh)11010

236、99897*total includes future¤t capacities*note:sodium-ion excludedChina still dominates the battery industry,but new projects have slowed due to overcapacity.Companies like Gotion and Ganfeng mitigate this by securing the upstream supply chain,while others pivot to energy storage to offset the

237、weaker EV battery market.1 INDUSTRY|BATTERY REPORT 2024|P.77Gigafactory Tracker-5,796*GWh Of Capacity|Part 3 Of 3CELL&PACK MANUFACTURING|GIGAFACTORY PLANTS|CHINA IIIDFD113 Nanning,5 GWh,20 GWh)114 Jiaozuo,11.5 GWhGEELY,YAONING115 Ganzhou,12 GWh,30 GWh)116 Quzhou,24 GWh117 Tangshan,24 GWh)118 Yingtan

238、,5 GWh,15 GWh)119 Xuancheng,15 GWh120 Yancheng,6 GWh,6 GWh121 Yueyang,12 GWh)122 Hangzhou,12 GWh)123 Chongqing,12 GWh)124 Zhenjiang,3 GWh,6 GWh125 Shangrao,3 GWh,3 GWhCHERY126 Wuhu,6.25 GWh,20.75 GWh)GAC/YINPAI127 Guangzhou,12 GWh,24 GWh)LISHEN128 Chuzhou,22 GWh,20 GWh)129 Tianjin,4 GWh,26 GWh)130 W

239、uxi,24 GWh)131 Qingdao,4 GWh,10 GWh)DESAY132 Changsha,6 GWh,14 GWh)TIANNENG133 Huzhou,9 GWh,17 GWh)134 Maanshan,3 GWh,17 GWh)SHUANGDENG135 Xiangyang,2.8 GWh,7.2 GWh)136 Taizhou,2 GWh,4 GWhETC BATTERY137 Wuhu,4 GWh,11 GWh)COSPOWERS138 Chuzhou,20 GWh)139 Nantong,12 GWh)140 Changde,4.5 GWh,5.5 GWh)141

240、Dongying,2 GWh,4 GWh142 Dali,3 GWh,3 GWhHIGHSTAR143 Changsha,30 GWh)144 Nantong,5.7 GWh,4 GWh145 Zhuhai,6 GWhGENLEAD146 Yancheng,5 GWh,10 GWh)SACRED SUN147 Taian,2 GWh,2 GWhEVPS148 Chuzhou,4 GWh,6 GWhPHYLION149 Chuzhou,5.6 GWh,4 GWh150 Suzhou,2.2 GWhCBAK151 Nanjing,2 GWh,18 GWh)152 Dalian,1 GWh,1 GW

241、h153 Shangqiu,0.5 GWhBAK154 Zhengzhou,4.5 GWh,30 GWh)155 Fuzhou,2 GWh,11.5 GWh)156 Shenzhen,3.5 GWhCOSMX157 Deyang,25 GWh)158 Chongqing,15 GWh)159 Jiaxing,2.5 GWh,10 GWh)EXENCELL160 Mianyang,6 GWh,12 GWh)161 Yancheng,18 GWh)162 Zhuhai,18 GWh)163 Dali,18 GWh)RISESUN MGL164 Nanjing,30 GWh)165 Tianjin,

242、6.3 GWh,9.2 GWh)166 Beijing,0.5 GWhWELION167 Huzhou,2 GWh,20 GWh)168 Zibo,6 GWh,14 GWh)169 Beijing,8 GWh170 Shenzhen,0.6 GWh)171 Changzhou,0.2 GWhChina still dominates the battery industry,but new projects have slowed due to overcapacity.Companies like Gotion and Ganfeng mitigate this by securing th

243、e upstream supply chain,while others pivot to energy storage to offset the weaker EV battery market.Source:New Energy Terminal128129130131133134132166165180169168161136144176173167175137148179135174156145178160172143171146147157158159138139142140141113114QINGTAO172 Chengdu,15 GWh)173 Suzhou,0.7 GWh,

244、10 GWh)174 Yichun,1 GWh175 Taizhou,0.5 GWh)176 Shanghai,0.5 GWh)TALENT NEW ENERGY177 Huainan,10 GWh)178 Chongqing,0.2 GWh,2 GWhENPOWER179 Chuzhou,10 GWh)180 Beijing,0.2 GWh,2.8 GWh)How to read this mapBASIC FORMAT=Current Capacity GWh,(+Additional Future Capacity GWh)16312716217011511612212511815512

245、1152154153149117123177150151164126119124120*total includes future¤t capacities*note:sodium-ion excludedBATTERY REPORT 2024|1 INDUSTRY|Material Suppliers-Market Share Breakdown2024 DataSource:Fraunhofer ISI-Tim Wicke,ResearcherCELL&PACK MANUFACTURING|SUPPLIERS|ACTIVE MATERIALSAnodeAnodeCathodeB

246、TR New EnergyKaijinZichenShanshan GroupXFHShinzoomPoscoResonacMitsubishi ChemicalSinuoOtherHunan Yuneng LFPDynanonic NCMHubei WanrunECOPRORonbayLOPALXiamen TungstenRonbayBYDTianjin B&MOtherElectrolyteTinciShenzhen CapchemGuotai-HuarongBYD CellMU Ionic SolutionsEnchemCentral GlassDongguan ShanshanSou

247、lbrainDongwha EtecOtherSeparatorSEMCorp/JGPShenzhen SeniorChinaly New MaterialSKIETAsahiMingzhuTorayWScopeCelgardUbe MaxellOtherACTIVE MATERIALS MARKET SHAREChina continues to dominate in the active materials market.The cathode industry is more populated than others,with many small players.P.78BATTE

248、RY REPORT 2024|1 INDUSTRY|RossDelta ModTechOwensDURRWirtzBWDigatronCoesiaComauMpacConvergixGROBMhlbauerPECSources:Ross,Wirtz Manufacturing,DURR,barryWehmiller,Delta ModTech,Owens Design,Convergix,Comau,Mpac,GROB,Coesia,PEC Corp,Digatron Systems-Non exhaustive listMajor Equipment Manufacturers-USACEL

249、L&PACK MANUFACTURING|SUPPLIERS|EQUIPMENT MANUFACTURERSUS Subsidiary-Manufacturing Within USA*PROCESS AREAMixingCoatingCalendaringSlittingStackWindPackagingFillingFormationDegassingAgingTest/Grade PROCESS AREAP.79BATTERY REPORT 2024|1 INDUSTRY|TSICISKGAPNTmPlusETSCowin/TopHanwhaHanaWonikDA TechMOTSNF

250、Sources:TSI,CIS,KGA,PNT,mPlus,ETS,Cowin Tech Top Material,Hanwha Momentum,Hana Technology,WonikPNE,DA Technology,MOT,SNF-Non exhaustive listCELL&PACK MANUFACTURING|SUPPLIERS|EQUIPMENT MANUFACTURERSMajor Equipment Manufacturers-South KoreaPROCESS AREAMixingCoatingCalendaringSlittingStackWindPackaging

251、FillingFormationDegassingAgingTest/Grade PROCESS AREAP.80BATTERY REPORT 2024|1 INDUSTRY|AutoRichONGOALMESNACGMKShangshuiYingheLyricLEADKATOPHymsonBozhonHangkeHYNNSources:AutoRich,Ongoal Technology,Mesnac,GMK,Shangshui,Yinghe Technology,Lyric,LEAD,KATOP,Hymson,Bozhon,Hangke Tech,HYNN-Non exhaustive l

252、istCELL&PACK MANUFACTURING|SUPPLIERS|EQUIPMENT MANUFACTURERSMajor Equipment Manufacturers-ChinaPROCESS AREAMixingCoatingCalendaringSlittingStackWindPackagingFillingFormationDegassingAgingTest/Grade PROCESS AREAP.81BATTERY REPORT 2024|1 INDUSTRY|Source:GHG Institute(Scope 13,Scope 4)CELL&PACK MANUFAC

253、TURING|LCAThe Entire Battery Value Chain Must Now Be Knowledgeable Of Their Carbon Footprint GWPEven small,private companies will have to know their GWP to be able to respond to a customer request for informationSCOPE 13 FORMAL,ISO 14040SCOPE 4 AVOIDED EMISSIONS INFORMALP.82BATTERY REPORT 2024|1 IND

254、USTRY|Source:City of Holland,Michigan,USAEvolution Of The Manufacturing FootprintLGES in Holland,Michigan Case StudyMODULAR DESIGN SIMPLIFIED MATERIAL FLOWCommissioned:202420 GWhAD HOC DESIGN ANGULAR MATERIAL FLOWCommissioned:20115 GWhCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPS|FOOTPRINT EVOL

255、UTIONWith early gigafactories,an angular factory design was often used to save space,but in the current production environment a linear design is used to improve efficiency and scalabilitySTART 10 GWh)SCALE 10 GWh)P.83BATTERY REPORT 2024|1 INDUSTRY|Manufacturing Process Groups-Leading Edge 20 GWh Po

256、uch LineFormationDegasAgeAgeCalendar&SlitFillPackageCoat/DryMixCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPS|PROCESS GROUPSMany models and manufacturing metrics currently in use are based on early GWh-scale factories using outdated estimatesCurrent generation(leading edge)facility metrics are n

257、ow available based on LGES facilityCoat/DryMixStack/WindCalendar&SlitSoakShipTestP.84Source:City of Holland,Michigan,USABATTERY REPORT 2024|1 INDUSTRY|MixingCoatingCalendaringSlittingStack/WindPackagingFillingFormationDegassingAgingTest/Grade/ShipArea Sq FtArea/GWh Sq FtArea%TemperatureDew PointClea

258、n Room Class96334481710%22+/-2C/ISO 8134867674314%22+/-2CSemi-dry 5 to 5CISO 74816724085%22+/-2CSemi-dry 5 to 5CISO 7 ISO 84816724085%22+/-2CSemi-dry 5 to 5CISO 7 ISO 8115601578012%22+/-2CDry 40 to 50CMinimum ISO 7115601578012%22+/-2CDry 40 to 50CMinimum ISO 796334481710%22+/-2CExtra dry 50 to 70CMi

259、nimum ISO 73853419274%22+/-3C/4816724085%22+/-3C/125234626213%22+/-3 HT 3050C/96334481710%22+/-3C/Source:VDMA,City of Holland LGESCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPS|FACILITY METRICSFacility Metrics-20 GWh Pouch,USA 1,919 X 502=963,338 Square Feet PROCESS AREAP.85BATTERY REPORT 2024|1

260、 INDUSTRY|Sources:LG Energy;VDMA;Faraday Institution;Mastering Ramp-up of Battery Production,FraunhoferCAPEX$55127 million/GWhCELL CAPACITYPrismatic:1200 AhPouch:1100 Ah2170 36 Ah4680 1525 AhHUMANS/GWH175 jobs created per GWhSCRAP RAMP UP1530%Scrap remains one of the key issues,primarily due to elec

261、trode production&lack of trainingFor solutions to improve yield and reduce scarp,see software solutions and QA/QC hardware solutions Manufacturing Process Map-OverviewCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPSGraphics courtesy of LG Energy Solution.Reproduced with permission.P.86BATTERY REPO

262、RT 2024|1 INDUSTRY|MIXINGSlurries are madeby mixing active material,binder,and solventThe different combinations between those three highly affect coating&dryingCALENDARINGElectrodes are densified to a target valueCOATING&DRYINGElectrode slurries are coated onto the current collector 54%cost of elec

263、trode productionAll other process steps depend on the quality of this step.SLITTING&NOTCHINGElectrodes are cut into singulated segmentsUncoated areas are cut out leaving the parts where tabs will be groundedHere its important to determine electrode quality and densityCHALLENGESslurry quality(uneven

264、dispersion)VACUUM DRYINGRemoves leftover solventCHALLENGESelectrode waste;physical damage to materialCHALLENGESprocessing time;utilization loss;difficult to measure quality&get quality metricsCHALLENGESedge quality(burr defects often occur-dangerous),difficult to inspect at speed;tool wear;lowest OE

265、E of any process because its difficult to automateCHALLENGESprocessing time;footprint;takes 1224 hoursof total manufacturing costpouch film speedcylindrical film speedscrap rate39%5080m/min2030m/min5%Sources:LG Energy;BCGManufacturing Process Map-1.Electrode ProductionCELL&PACK MANUFACTURING|MANUFAC

266、TURING PROCESS MAPSGraphics courtesy of LG Energy Solution.Reproduced with permission.P.87BATTERY REPORT 2024|1 INDUSTRY|Dry Electrode Technologies-Timeline of Manufacturing Deployments&PartnershipsSources:Dragonfly Energy,Korea Herald,Autoevolution,Samsung SDI,Anaphite,AM BatteriesCELL&PACK MANUFAC

267、TURING|MANUFACTURING PROCESS MAPS|NEW PROCESSESAUGUST 2024Tesla produced a Cybertruck with in-house dry cathode and dry anode 4680 cells making it an all dry electrode vehicle.SEPTEMBER 2024Samsung SDI completed the“Dry EV Line,a pilot line for dry electrode technology at the Cheonan plant,and start

268、ed pilot production.In 2024,momentum behind dry electrode technology surged,as both established industry giants and ambitious newcomers pushed the boundaries of next-generation battery innovations.From large-scale pilot lines to bold investments,new partnerships,and breakthrough product launches,the

269、 year was anything but quietsetting the stage for a fiercely competitive race to redefine the future of lithium-ion production.JULY 2024LG Energy Solution plans to complete a pilot line for its dry electrode process at the Ochang plant by the end of this year and to achieve series production by 2028

270、.OCTOBER 2024Anaphite raised$13.7M in Series A to commercialize their dry battery electrode material preparation process.DECEMBER 2024 AM Batteries Inc.receives investment from Shibaura Machine Co.,Ltd.(fka Toshiba Machine)to scale up dry spray process for electrode production.Note:non-exhaustiveP.8

271、8APRIL 2024Dragonfly Energy announced its dry electrode process was validated through a third-party assessment.BATTERY REPORT 2024|1 INDUSTRY|Sources:LG Energy;BCG;RWTH PEMPOUCH FORMINGMaking a case by pressing a filmLAMINATION&STACKING/WINDINGLamination:laminating layers to maintain positional inte

272、grityStacking:stacking layers of electrode&separator.Note that wound pouch cells also exist.ELECTROLYTEINJECTIONFilling the electrode pocket with electrolyte through metered dispensingTAB WELDINGTabs are ultrasonically welded to the jelly rollCHALLENGEScorner crackingCHALLENGESfoil damage;coating ad

273、hesionCHALLENGESpositioning accuracy of anode&cathode sheets(alignment);speed(affects positioning)CHALLENGESdosing and distribution accuracy of the electrolyte in the cell;No electrolyte residues in the sealing seam;seal integrityof total manufacturing costspeedscrap rate20%220parts/min5%Manufacturi

274、ng Process Map-2.Cell Assembly-PouchCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPSGraphics courtesy of LG Energy Solution.Reproduced with permission.P.89BATTERY REPORT 2024|1 INDUSTRY|WINDING&TAB WELDINGWinding the cathode,anode,and two separator rolls.Welding the aluminum andcopper tabs onto th

275、e cathode and anode respectively.SPEED 30 parts/minELECTROLYTE INJECTIONElectrolyte is injected into the vacuumed can.The can is pressurized to accelerate electrolyte absorptionand then sealedThe jelly roll is put in the cylindrical can and then fixed through welding.High-speed mechanical deformatio

276、n processSPEED 300600 parts/minCHALLENGESanode,cathode,separator alignment;tabing,taping,cutting accuracy;tab welding quality(can introduce safety issues)CHALLENGESmetal contaminationTAB SHAPING&CANNINGCHALLENGESelectrolyte absorption due to density;pooling of electrolytePHYSICAL INSPECTIONThrough C

277、T and/or XRay,the battery cell is analyzed to detect potential defects.CHALLENGESspeed of analysis doesnt allow real-time analysisDEGASSING/PRECHARGEOptional process to remove gasCHALLENGESexhaust gas treatmentAvoiding residual gas during sealing and folding stepsof total manufacturing costscrap rat

278、e20%5%Graphics courtesy of LG Energy Solution.Reproduced with permission.Manufacturing Process Map-2.Cell Assembly-CylindricalCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPSSources:LG Energy;BCG;RWTH PEMP.90BATTERY REPORT 2024|1 INDUSTRY|Sources:CATL,RWTH PEM CHALLENGESanode,cathode,separator ali

279、gnmentCHALLENGESelectrolyte absorption due to density;pooling of electrolyteCHALLENGEScap to can alignment,missed laser welding spotCHALLENGESthroughput and qualityCHALLENGESanode,and cathode tab alignmentZSTACKINGWinding the cathode,anode,and two separator rolls.Welding the aluminum and copper tabs

280、 onto the cathode and anode respectively.SPEED 30 parts/minPRE WELDING&TRIMMINGThe cathode and anode tab are aligned and U/S weldedSPEED 1820 parts/minCAP TO CAN WELDINGThe can to cap spot welding by laser source and followed by complete laser welding of the cap to can.ELECTROLYTEINJECTIONElectrolyt

281、e is injected into the vacuumed can.The can is pressurized to accelerate electrolyte absorption and then sealedPRE CHARGE&FORMATIONAfter the filling pre charge is performed and cell is kept for RT aging and followed by formation&grading processof total manufacturing costscrap rate20%5%CHALLENGESthro

282、ughputHOT PRESSThe hot press machine works on the principle of heat and pressure application to achieve a strong and reliable bond between battery components.SPEED DWELL TIME 10 seconds/unitCHALLENGESuneven stress,burr issues,and powder lossWOUND PRISMATICRoll the slitted cathode,anode,and separator

283、 together by controlling speed,tension,etc.SPEED 30 parts/minManufacturing Process Map-2.Cell Assembly-PrismaticCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPSGraphics courtesy of LG Energy Solution.Reproduced with permission.P.91BATTERY REPORT 2024|1 INDUSTRY|Stacking Versus WindingHigher energy

284、 density and thermal manage-ment due to lower internal resistance.Less prone to swelling&core collapse.Customizable for unique form factors,like EVs&aerospace.Improved packing efficiency for rectangular modules,maximizing volume utilization in packs.StackingStrengthMature,well-established technology

285、 with lower production costs.High production speed and scalability,ideal for mass production.WindingSlower production speed due to precision layer alignment&index motion.Higher costs due to complex manufacturing equipment.Limited scalability in high-volume production.Potential failure(burrs,delamina

286、tion,etc.)due to additional cutting required.WeaknessSlightly lower energy density due to voids at edges of rolled layers.Packing efficiency is lower for rectangular or prismatic packs due to cylindrical shapes.Prone to localized hotspots during high discharge rates.Rising demand for EVs and station

287、ary energy storage systems highlights stackings high-density benefits.Advances in automation and robotics are making stacking more cost-competitive.OpportunityPopularity in passenger&commercial EVs and consumer electronics at low cost supports growth.Innovations in thermal management solutions such

288、as shutdown separators could address limitations in heat dissipation.Competing technologies like hybrid stacking-winding techniques may reduce its exclusivity in precision.Limited scalability compared to winding could deter adoption in mass markets.ThreatEmerging battery formats,such as solid-state

289、cells,could demand new manufacturing paradigms.Sources:Tycorun,Bonnen Batteries,Evaluating the Manufacturing Quality of Lithium Ion Pouch Batteries ApplicationsFastest growing solution with companies like BYD Blade battery)and Apple adopting it for high C-rate applications(due to lower internal resi

290、stance)Most stable technology with companies like CATL&Tesla and commercial high volume manufacturers are widely utilizing this technique due to its scalability and lower cost.CELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPS|NEW PROCESSESHOW ARE THE TWO TECHNIQUES DIFFERENT?Stacking involves stack

291、ing electrodes and separators into precise layers that are atop one another to form a flat cell.These can be separate cut layers or one continuous electrode as well.This process enables high energy density and precise structural stability,making it ideal for applications requiring compact,high-perfo

292、rmance batteries,such as electric vehicles EVs and aerospace systems.Winding,or the jelly-roll process,involves rolling electrodes and separators into a cylindrical or prismatic structure.It is widely adopted due to its speed and scalability,making it suitable for mass production in consumer electro

293、nics and power tools.Recent innovations include hybrid techniques like laminated winding and Z stacking,which combines stacking and winding to optimize energy density while maintaining manufacturing efficiency.Automation in stacking processes has also improved production speeds,closing the gap with

294、winding techniques.a)Winding;b)StackingP.92BATTERY REPORT 2024|1 INDUSTRY|Sources:LG Energy;BCG;RWTH PEMCHARGING&DISCHARGINGElectrochemical activation.SEI is formed on the anodeDEGASSINGPouch only.Gases formed during aging are cut off inside of a vacuum chamber(sacrificial gas bag).AGINGBattery is s

295、tored at a consistent temperature and humidity to allow for corrosion mechanisms from potential contaminationCHARGING,DISCHARGING,&AGINGThe previous processes are repeatedQUALITY CONTROLEnd of line check-capacity,resistance,voltage,etc.,and cosmeticCHALLENGESslow throughput due to long time required

296、;fire (most factory fires occur here)CHALLENGESresidual gas inside the cell;seal quality;throughput(a lot of additional CAPEXCHALLENGESProcess time,throughput;factory footprintCHALLENGESthroughputCHALLENGEScosmetic&variation in capacity;yieldof total manufacturing costtimescrap rate41%525days9%Manuf

297、acturing Process Map-3.FormationCELL&PACK MANUFACTURING|MANUFACTURING PROCESS MAPSGraphics courtesy of LG Energy Solution.Reproduced with permission.P.93BATTERY REPORT 2024|1 INDUSTRY|Sources:LG Energy;RWTH PEMCONNECTING BATTERY CELLSBattery cells are connected after surface is cleanedCHALLENGESsurf

298、ace cleaning;weld quality;cell to cell matchingPACK ASSEMBLYThe modules are put in the battery pack and connectedAPPLYING BMSA Battery Management System is applied to battery packMODULARIZATIONThe cells are attached to the module caseCHALLENGESdamage due to placement(primarily pouch);large machinery

299、 required due to module mass&dimensions,safety at high voltagesCHALLENGESensuring cable flexibility,Battery cells handlingCHALLENGEScorrect wiring and integration of the BMSFINAL TESTA series of electrical test including charge and discharge cycle are performed to ensure the highest qualityCHALLENGE

300、Stesting sequence,results and accepted limits vary between manufacturers,resulting in lack of standardizationFINAL INTEGRATIONThe battery packs are then used in Electrical Vehicle EV)and Battery Energy Storage System BESSCHALLENGESbattery pack integration with other components in EV or BESSCELL&PACK

301、 MANUFACTURING|MANUFACTURING PROCESS MAPSManufacturing Process Map-4.Pack AssemblyGraphics courtesy of LG Energy Solution.Reproduced with permission.P.94BATTERY REPORT 2024|1 INDUSTRY|Source:Mastering Ramp-up of Battery Production,Fraunhofer Both Figures)CELL&PACK MANUFACTURING|QA/QC|INTROHigh Yield

302、 Production Is Challenging-Reducing Scrap Is Necessary To Compete With ChinaAll battery manufacturers will have to master operational excellence to match industry leader CATL.The available and developing technology sets of manufacturing data collection and analysis should be the primary solution.SCR

303、AP RATES OVER YEARS OF OPERATIONCOST OF SCRAPP.95BATTERY REPORT 2024|1 INDUSTRY|MAJOR DEFECTS THAT CAN OCCUR DURING COATING AND DRYING OF ELECTRODESSources:Mastering Ramp-up of Battery Production,Fraunhofer Both Figures but with internal edits*);2 High-Potential Failure Analysis,Sotto;Detecting the

304、foreign matter defect in lithium-ion batteries.,Pan et al.CELL&PACK MANUFACTURING|QA/QC|INTROCell Manufacturing Issues-Electrode Manufacturing Is DifficultEvery step in battery production presents challenges,but some,like coating,drying,and slitting carry a significantly higher risk of defects.The h

305、eat map illustrates these critical areas,highlighting their likelihood of defects.SURFACE DEFECTSBULK DEFECTSagglomeratespinholescontaminationinhomogeneous coating loadheavy edgesclosely packed clusters of the solid componentstiny holes or missing spots in the electrode coatingimpurities of foreign

306、substancesInhomoge-neous coating applicationpoor optimization of the slot die on the cross-web profilemechanical failure of the separator;localized impedance rise and capacity losscan affect cell performance due to localized regions where capacity balancing issues occur,potential Li platingcan cause

307、 fast battery degradation and internal short circuit ISC,lead to hi-pot failure 2heteroge-neous porosity of electrodes;capacity balancing issues within cell,potential Li platinguneven calendaring,leading to electrode wrinkles,leading to cell failureDESCRIPTION EFFECTProduces most scrap during ramp-u

308、pContamination occurs leading to cell failure(most relevant for mass production)P.96BATTERY REPORT 2024|1 INDUSTRY|Investing In QA/QC-Hardware&Software In The Era Of Industry 4.0 To Improve Ramp Up&YieldIndustry 4.0 is the“next phase in the digitization of the manufacturing sector,driven by advancem

309、ents in technology,data,and connectivity.Its transformative potential lies in integrating cutting-edge tools and systems to create smarter,more efficient production environments.HERE ARE SOME KEY MANUFACTURING QA/QC AREAS IMPACTED BY INDUSTRY 4.0 THAT EVERY MANUFACTURER SHOULD CONSIDERSources:The Ri

310、se of Industry 4.0 and its Impact on Metrology,What are Industry 4.0,the Fourth Industrial Revolution,and 4IR?CELL&PACK MANUFACTURING|QA/QC|INTROADVANCED TECHNOLOGY AND HARDWARESensors and hardware are now designed to be more compact,accurate,and reliable,enabling broader,quicker data collection wit

311、h greater precision.INTELLIGENT AND CONNECTED EQUIPMENT IoT Internet of Things)has enabled real-time data collection,integration,and monitoring.It has also allowed for adaptability(re-calibration for example).MACHINE LEARNING AND AUTONOMOUS DECISIONMAKINGAI/ML are driving the development of incredib

312、le inspection equipment&software that leverages predictive analytics to automate decision making,improving throughput and quality.TRACEABILITY:Advanced equipment and software enable traceability across the production line,key to accelerating ramp up and reducing scrap by identifying defects&yield is

313、sues early.ITS ALL CONNECTED.EVERY PROCESS STEP AFFECTS THE NEXT.INTEGRATION AND TRACEABILITY IS KEY.Other advanced industries like semiconductor have embraced this shift,investing billions into QA/QC&advanced analyticsP.97BATTERY REPORT 2024|1 INDUSTRY|CELL&PACK MANUFACTURING|QA/QC|TOOLSSome Core I

314、n-Line Measurements To Track Quality-Color Coded By ToolSource:research done on multiple tool providers and insights from manufacturing expertsTOOL TYPESOPTICALXRAY/CTVISCOMETERLASER SCANNERLEAK DETECTOR USUALLY HELIUMELECTRICAL SAFETY TESTERPRECISION BALANCECD EQUIPMENTTYPICAL TOOLS USED Note:List

315、only highlights primary tool usedVISCOSITYFOREIGN PARTICLESCOAT WEIGHTFOIL/ELECTRODE THICKNESSWRINKLE INSPECTIONELECTRODE THICKNESSDIMENSIONAL MEASUREMENTSBURR INSPECTIONTAB BENDING DEFECTSDELAMINATIONALIGNMENTTAB,TAPE POSITIONWELDING ANALYSIS/DEFECTSHIPOT REJECTSSHRINK WRAP INSPECTIONCAN SURFACE IN

316、SPECTIONCOSMETIC DEFECTSDIMENSIONAL MEASUREMENTSCAPACITYDELTAVVOLTAGEACIR,DCIRCAN CRIMP PROFILE,DIAMETERLID WELDING POSITION ALIGNMENTCAN EDGE DEFECT INSPECTIONEFILL LEAKAGE INSPECTIONELECTROLYTE MASSMEASUREMENTSNote:List is non-exhaustiveP.98BATTERY REPORT 2024|1 INDUSTRY|QA/QC Technologies-High Re

317、solution Electrode Inspection In-LineIn the past,electrode morphology has been key in R&D.But,not in manufacturing,largely due to micron level in-line inspection being nearly impossible.Now,manufacturers are recognizing the importance of in-line electrode inspection,due to its impact on cell quality

318、,and exciting solutions are entering the market.Lets dive into why this is important and how its done.Sources:PDF Solutions,High-Potential Failure Analysis,Sotto;Detecting the foreign matter defect in lithium-ion batteries.,Pan et al.;The Impact of Li Grain Size on Coulombic Efficiency in Li Batteri

319、es,Mehdi et al.;Particle size and zeta potential of electrode materials:better characterization,better performance,Anton Paar;Balancing particle properties for practical lithium-ion batteries,Zhang et al.;Effect of the grain arrangements on the thermal stability of polycrystalline nickel-rich lithiu

320、m-based battery cathodes,Hou;Identifying the Origins of Microstructural Defects Such as Cracking within Ni-Rich NMC811 Cathode Particles for Lithium-Ion Batteries,Heenan et al.;The influence of void space on ion transport in a composite cathode for all-solid-state batteries,Hlushkou et al.;Probing t

321、he particle size dependence of nonhomogeneous degradation in nickel-rich cathodes for high-energy lithium-ion batteries,Song et al.CELL&PACK MANUFACTURING|QA/QC|TOOLSWHAT ARE THE FEATURES?Agglomerations and contaminationGrain size,arrangement and uniformitySurface roughness Voids in electrode struct

322、ureDefect progression(cracks,fractures)WHY IS IT IMPORTANT TO CAPTURE THEM?Contamination:Causes fast battery degradation and internal short circuit(ISC),leads to battery failure.Agglomerations:Causes defects in coating,leads to scrap.Larger Grains:Enables uniform lithium deposition,reduces dendrite

323、formation Improves safety.Grain Arrangements:Helps ionic and electronic pathways,improves tortuosity.Uniform Grain Size:Boosts energy/power density;non-uniformity causes stress,cracks,and degradation.Defects&Voids:Increases resistance,weakens structure Reduce efficiency and long-term performance.Rea

324、d the papers linked below to find out moreHOW IS IT DONE?-EXAMPLE METHODProvider example:Optical Hardware AI/ML Engine 13 micron resolution Can operate at film speed Takes 50+images/sec Lighting system to enable 3 directional observations Instant image processing Identifies and measures each image f

325、eatureelectrode microstructure,more than pretty picturesMIXINGCOATINGCALENDARINGSLITTING/NOTCHINGWINDING/STACKINGFILLINGFORMATION/AGINGEOLP.99BATTERY REPORT 2024|1 INDUSTRY|QA/QC Technologies-TerahertzTo date no sensor technology was capable of measuring coating density,coating thickness and conduct

326、ivity simultaneously,accurately and rapidly during the in-line coating process.Terahertz sensors offer a solution that provide density,thickness and conductivity in one measurement,allowing for real-time feedback and control.Sources:TeraviewCELL&PACK MANUFACTURING|QA/QC|TOOLSWHAT ARE THE FEATURES?De

327、nsity of the coatingThickness of the coatingConductivity of the coatingElectromagnetic Wavelength 1 mm to 100 mCurrently deployed at US battery manufacturerWHY IS IT IMPORTANT TO CAPTURE THEM?Density of the coating:The mass of active material per unit area dictates the final capacity of the electrod

328、e and while higher coat weights are desirable to increase energy density,they typically also lower the power density.Thickness of the coating:Ensuring the homogeneity of coating thickness in the production process is one of the biggest challenges in high volume manufacturing.Thicker electrodes conta

329、in a greater amount of active materials,increasing energy density,but also have greater diffusion distances,lowering power output,as well as potentially causing uneven response across the electrode and leading to quicker degradation.Conductivity of the coating:High conductivity improves the capacity

330、 at higher discharge rates,with more energy extracted from the battery at a given time.HOW IS IT DONE?-EXAMPLE METHODSProvider examples:MIXINGCOATINGCALENDARINGSLITTING/NOTCHINGWINDING/STACKINGFILLINGFORMATION/AGINGEOLP.100BATTERY REPORT 2024|1 INDUSTRY|QA/QC Technologies-CTScanning Is Transforming

331、Battery ManufacturingSELECTION OF COMPANIES OFFERING BATTERY CTCELL&PACK MANUFACTURING|QA/QC|TOOLSA Computed Tomography CT Scan uses X-rays to create detailed 3D images of battery components.The sample rotates while X-rays pass through it,capturing multiple 2D projections.These projections are recon

332、structed into a full 3D model for internal analysis.Unlike traditional 2D inspection,CT provides complete volumetric data over the battery cell.EMERGING CT TECHNOLOGIES Faster ScanningCT inspection for batteries must match the high throughput of battery production.In 2024,new techniques have emerged

333、,using AI-supported reconstruction algorithms,fast detectors,or high-brightness X-ray sources.Full cell scanning in-lineAs an effect of the increased scanning speed,CT scanning of full cylindrical cells at high speed has been developed-with throughputs approaching full cell in-line CT.Data ManagementWith increasing scan speed,and in-line CT,extreme data volumes will be generated 50 GB/cell).To man