The Weekly Potential #17
This week in the battery industry: Varta’s troubles, Saudi Arabian emergent mineral industry, continuing BESS deployments, AI’s increasing role in battery development, ...
Welcome to the 17th edition of The Weekly Potential, a free newsletter providing you insights into the battery industry. This week we are touching upon Varta’s troubles, Saudi Arabian emergent mineral industry, continuing BESS deployments, AI’s increasing role in battery development, and more.
Let's dive in! 🔋
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Industry Developments
The German battery manufacturer Varta was approved to proceed with its restructuring plan aimed at resolving its financial distress. This restructuring involves a reduction of its debt from €485 million to €230 million, alongside a controversial move to reduce the company's share capital to zero, effectively wiping out existing shareholders' value. The plan includes fresh equity injections from major stakeholders, including Porsche and Michael Tojner, each contributing €30 million. Despite opposition from minority shareholders, who filed a constitutional complaint, the restructuring was approved by the Stuttgart District Court, securing Varta's future operations and potentially saving it from insolvency. (Read more)
Saudi Aramco and Ma'aden have embarked on a joint venture aimed at exploring and mining transition metals, particularly focusing on lithium extraction. This partnership seeks to leverage Aramco's extensive geoscience data, digital capabilities, and subsurface knowledge alongside Ma'aden's decades of mining expertise. Aramco has identified promising lithium concentrations exceeding 400 parts per million within its operational areas, signaling a potential for substantial commercial production by 2027. The collaboration has been formalized through non-binding Heads of Terms. (Read more)
Gore Street Energy Storage Fund has completed the energisation of its 200MW/400MWh Big Rock battery energy storage system (BESS) project in California. The Big Rock BESS has secured a 12-year fixed-price contract worth over US$165 million, which will commence in June 2025, offering a stable revenue stream while also allowing for additional income from wholesale trading and ancillary services. This project represents the company's largest asset to date, with the fund now operating across five grids with an energised capacity of 621.4MW/792.1MWh. (Read more)
Scania has intervened to assist Northvolt, a struggling electric vehicle battery manufacturer, in managing its flagship plant in northern Sweden. Since November 2024, Scania has deployed staff to Northvolt's Ett plant in Skellefteå to enhance quality and production output amidst Northvolt's financial and operational challenges. This support comes as Northvolt, after downsizing and filing for U.S. Chapter 11 bankruptcy, desperately seeks funds to revitalize its operations. (Read more)
SES AI Corporation has announced contracts totaling up to $10 million with two major global automotive OEM partners. These contracts focus on the application of AI for Science to develop new electrolyte materials for both Li-Metal and Li-ion batteries specifically for automotive applications. The agreements signify a milestone in SES AI's mission to advance battery technology, with revenue recognition expected to begin in the fourth quarter of 2024 and continue through the first half of 2025. (Read more)
Paper of the Week
Boston Consulting Group released The Battery Cell Factory of the Future article in which they outline a vision of a battery factory for next-generation cells. The key takeaways are as follows:
Battery cell production could outpace the demand. This makes the operational efficiency of battery cell factories essential to competitiveness
Cell makers should incorporate factories with latest advancements in artificial intelligence and automation, following lean processes.
Investing in innovations is dependent on the specific technology and factory setting, requiring manufacturers to make context-specific assessments. (Read more)
On the Go
The Battery Lab podcast hosted Oliver Gross, Senior Fellow at Stellantis, to discuss the EV battery industry. They touched upon solid-state batteries, the 800V system architecture, X-ray diffraction’s use in battery development, and emerging battery chemistries.
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