The Weekly Potential #18
This week in the battery industry: CATL's IPO, Fluence's new BESS, BYD's solid-state batteries, Samsung's recalls, EU Batteries Regulation looming deadline, ...
Welcome to the 18th edition of The Weekly Potential, a free newsletter providing you insights into the battery industry. This week we are touching upon CATL's IPO, Fluence's new BESS, KORE Power's troubles, Samsung's recalls, BYD’s solid-state batteries, EU Batteries Regulation looming deadline, and more.
Let's dive in! 🔋
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Industry Developments
Fluence, a leading energy storage system integrator, has unveiled Smartstack, a new high-density AC-based energy storage platform for grid-scale applications. Announced on February 13, 2025, Smartstack boasts approximately 30% higher energy density compared to typical AC solutions, with up to 7.5MWh storage capacity using 300Ah battery cells. The platform features a modular design with a Smart Skid base and interchangeable battery pods, improving transportation logistics and installation efficiency. (Read more)
Rendering of the Fluence Smartstack AC block solution. Source. Energy Storage News Contemporary Amperex Technology Co. Ltd. (CATL), the world's largest electric vehicle battery manufacturer, has filed for a secondary listing on the Hong Kong Stock Exchange on February 11, 2025. This move is expected to be Hong Kong's largest initial public offering (IPO) in four years, with CATL aiming to raise at least $5 billion. The funds will primarily support CATL's international expansion, including the construction of a €4.9 billion battery plant in Hungary. (Read more)
Kore Power, a US battery manufacturer, recently announced the cancellation of its $1.25 billion KOREPlex battery manufacturing plant in Buckeye, Arizona, citing a shift in strategy. The facility was initially planned to produce 6 GWh of lithium-ion batteries annually, but the site is now listed for sale. Alongside this decision, Kore’s founder and CEO, Lindsay Gorril, stepped down, with Jay Bellows taking over as CEO to lead the company’s new direction. (Read more)
Toyota Chemical Engineering has unveiled a new recycling technology for high-voltage batteries that eliminates the need for conventional incineration, significantly reducing CO2 emissions and improving material recovery rates. The process distills and extracts the flammable electrolyte before crushing and shorting battery cells, recovering valuable materials like aluminum, iron, and ‘‘black mass’’ powder containing rate metals. (Read more)
Tesla has officially started production at its new Megapack factory in Shanghai, its first energy storage facility outside the U.S. The plant, located in the Shanghai Lingang New Area, is Tesla's first Megapack manufacturing plant outside the United States, spans an area of approximately 200,000 m², and has an annual capacity of 10,000 Megapack units, equivalent to 40 GWh of energy storage. This expansion doubles Tesla’s global energy storage capacity and strengthens its position in the competitive battery energy storage system market. (Read more)
Samsung SDI has issued a major recall affecting 180,196 high-voltage battery packs used in vehicles from multiple automakers, including Stellantis, Ford, and Audi. The recall stems from a significant safety risk that could lead to thermal runaway and fires in affected vehicles. The issue is attributed to separator damage within the battery cells, which may cause internal short circuits and overheating. This recall spans across North America, Europe, and Asia, impacting various plug-in hybrid and electric vehicle models from 2020 to 2024. (Read more)
Battery manufacturers, importers, distributors, and other economic operators in the battery supply chain are facing a critical deadline to comply with the new EU Batteries Regulation (2023/1542). By August 18, 2025, these entities must ensure their batteries and battery-operated products meet stringent sustainability, labelling, and safety requirements. Failure to comply will result in severe consequences, including forced product removal from the market by enforcement authorities and potential financial penalties. (Read more)
BYD, the world's second-largest power battery maker, has recently announced plans to begin "demonstration use" of all-solid-state batteries by 2027. According to BYD's battery business CTO Sun Huajun, the company has made significant progress in developing this technology, with trial products of solid-state battery cells with capacities of 20 Ah and 60 Ah already rolling off the production line in 2024. However, Sun cautioned that large-scale adoption of all-solid-state batteries might not occur until after 2030. BYD is focusing on sulfide electrolytes for their solid-state batteries, citing cost and process stability considerations. (Read more)
A BYD Seal on display at the June 2024 Shanghai. Source CnEVPost Elevated Materials has launched as a spinout from Applied Materials specializing in roll-to-roll deposition of ultra-thin lithium films for next-generation batteries. Backed by TRG Rise Climate and leveraging decades of expertise and patents from Applied Materials, the company’s advanced vapor deposition technology enhances energy density, cycle life and charge rates while reducing costs for gigawatt-hour scale production. The startup, led by CEO Jim Cushing, begins with about 100 employees and manufacturing facilities in Santa Clara, California, and Alzenau, Germany. (Read more)
Impacted by tariffs, Volvo is actively seeking a new battery supplier for its electric flagship EX90, which is manufactured in the United States. Currently powered by CATL batteries, Volvo aims to shift to U.S.-based suppliers to reduce costs caused by tariffs on Chinese imports. Potential partners include firms like SK On and AESC, which already supply major automakers. (Read more)
Honda and Nissan officially announced on Thursday, February 13, 2025, that they have terminated their merger talks, ending the possibility of creating the world's third-largest automaker. The discussions, which began in December 2024, broke down due to disagreements over management structure and Nissan's turnaround efforts. Honda proposed changing the initial plan from establishing a joint holding company to making Nissan its subsidiary through a share exchange, which Nissan's board rejected. (Read more)
Paper of the Week
The Battery Monitor 2024/2025 by Roland Berger and PEM RWTH Aachen University analyzes the battery market, highlighting its dynamic nature and the shift from euphoria to realism due to financial and political uncertainties. The report emphasizes cost reduction as the dominant theme, driven by overcapacity in China and profitability challenges for automotive OEMs. The report also addresses the impact of potential trade wars, the need for local incentives, and the importance of adapting to evolving cell chemistries and technologies to remain competitive. (Read the full article)
On the Go
Wall Street Journal sat down with J.B. Strauble, CEO of Redwood Materials and ex Tesla CTO, to discuss battery recycling, industry direction and his vision for the new company.
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