The Weekly Potential #9
This week in the energy and materials industries: lithium-sulfur batteries, Chinese counterattack, biggest BESS in the world, interview with the CEO of CATL, European sentiment on battery technologies
Welcome to the 9th edition of The Weekly Potential, a newsletter dedicated to providing insights into the energy and materials industries. This week we are diving into Lyten’s plan to build a lithium-sulfur factory, Chinese response to the European tariffs, biggest BESS in the world, interview with the CEO of CATL, European sentiment on battery technologies, and more.
In other news, we have published a deep dive on Toyota’s batteries. Let us know what you think by reading it here.
Let's dive in! 🔋
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Industry Developments
Lyten has announced plans to construct the world's first lithium-sulfur battery gigafactory in Nevada. This facility, representing an investment of over $1 billion, aims to produce up to 10 GWh of lithium-sulfur batteries annually once it reaches full capacity. Lyten’s factory will manufacture cathode active materials, lithium metal anodes and complete assembly of lithium-sulfur battery cells in both cylindrical and pouch formats. Lithium-sulfur batteries do not use critical metal such as nickel or cobalt, and are poised to be cheaper to manufacture than current lithium-ion batteries.
Source: BestMag China has instructed its automotive industry to pause investments in European Union countries that have endorsed additional tariffs on Chinese-built electric vehicles (EVs). This directive, which emerged following a meeting held by China's Ministry of Commerce, signals a strategic response to the new EU tariffs on EVs, aiming to leverage economic pressure in negotiations over these trade barriers. Last month, European Commission has imposed tariffs on Chinese automotive players, specifically targetting BYD, SAIC and Geely.
Volvo Cars has announced its intention to assume full ownership of the NOVO Energy joint venture, previously established with Northvolt. This decision comes after Northvolt failed to meet its financial commitments, prompting Volvo to invoke its redemption rights to acquire Northvolt's shares. While the original plan was to produce battery cells at the facility in Gothenburg, Sweden, Volvo is now exploring alternative uses for the site, hinting that battery production might not proceed as initially envisioned.
CATL has entered a strategic partnership with Grenergy to supply battery energy storage systems (BESS) for the Oasis de Atacama project in Chile. This project is to be one of the largest BESS installations globally. The partnership involves CATL providing 1.25GWh of its EnerX model containers, optimized for the project's high-altitude location, enhancing energy storage efficiency at 4,000 meters above sea level.
SVOLT Energy Technology has announced the suspension of its European operations in Germany by January 2025. This decision includes halting the development of two battery factories initially planned for Germany, citing unmet expectations in the European electric vehicle (EV) market, coupled with financial pressures. The move reflects broader economic challenges that Germany is facing. Volkswagen has recently announced plans to close at least three of its factories in Germany, marking the first such closures in the company's 87-year history.
Paper of the Week
European Commission has published a study on electric vehicle (EV) battery technologies based on interviews conducted with a total of 17 organizations and companies in Europe operating along the battery value chain. The report serves as an indication of the European sentiment on battery technologies.
The study finds out that lithium-ion batteries are here to stay for the foreseeable future, but with improved performance. The next in line are sodium-ion and variants of solid-state batteries.
On the Go
Norges Banks Investment Management sat down with Robin Zeng, CEO of CATL, to discuss CATL’s success and Chinese view of the battery market.
Read More
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