#13 Energy Storage News & Views

Welcome back to Energy Storage News & Views.

We're into October and the final quarter of the year already! As I reflect on 2024 so far, it's clearly been a challenging year for many in the Energy Storage and wider cleantech sectors. As we've highlighted before, investment has been more difficult to attract. Many startups and scaleups are having to pivot to survive, whether that be refining their offering or being more diverse with their fundraising missions, for example PE, CVC, or family offices.

Despite the challenges so far, there does appear to be some green shoots and more investments being announced, as you'll see in the Deals section later.

From a recruitment standpoint, we're seeing many companies now beginning to ramp up their end of year recruitment to build their leadership and their expansion teams for the start of the new year. Here at Hyperion Executive Search, we've launched some exciting new retained searches in the UK and Germany... more on that below!)

As mentioned in the last edition, we're seeing a lot of growth in the Smart Grid / Smart Energy Software domain currently. Whether that be smart management or monitoring of batteries / ESS, flexibility services, or power trading. As markets are evolving across Europe, the ability for asset owners to get access to revenue stacking opportunities is huge! Over the years we've worked with the likes of Piclo, Dexter Energy, Arenko, Volytica and many more. Certainly a space to keep a close eye on!

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We're very excited to share our new platform, with a fresh new feel, that reflects the outstanding value we've added for our cleantech clients and investors for over 10 years and our deep expertise in executive search across Europe and North America! ??????

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Events!

A couple of weeks ago, Hristiyana Indzhova and I attended the Solar & Storage Live at the Birmingham NEC. This year's event was much bigger than previous events, with almost double the hall space making room for many new exhibitors. It was great to meet some new companies and candidates, but also bump into many familiar faces!

Generally, there was an optimistic feeling amongst those I spoke to - Solar & Storage integration is getting better and better and the commercial use cases much clearer, but there was also the real sense of "we need to get our act together" against the onslaught of Asian players now entering the UK and European markets.

I spent some time checking out the new technology on offer, and the highlight was swinging by the CATL exhibition stand and seeing their highly impressive LFP prismatic cell up close. I had the pleasure of finally meeting Laurent Segalen (as a huge fan of ??Redefining Energy , this was a big moment haha) who shared my admiration of the tech on show!

Industry News

The UK becomes the first major economy to phase out coal

The UK, where I'm based, reached a pretty huge milestone last week. The last coal-fired power station in Nottinghamshire was closed and with this, the UK has become the first major economy in the world to phase out coal completely, and this has been achieved through the amazing work of so many in renewables and cleantech!

With solar and wind making up a huge part of the UK's electricity mix, and the introduction of a new Green-thinking Labour Government, there is a lot of room for optimism! It's great news for our space too, building and deploying storage capacity to support this booming renewables roll out will be critical!

What could a new Trump Presidency mean for batteries and EVs

Some great insights from Iola Hughes and Will Roberts of Rho Motion around predictions for the US Battery and EV markets, should Donald Trump be elected into the Oval Office in November.

See this article for more details. Some of the key points included:

???? A Trump administration will likely amend the laws on fleet emissions limits as happened in 2016 when Trump's first term started. This will likely mean limits could return to pre-Biden levels, which will then impact the adoption targets for EVs.

???? BEVs will increase whether it be Harris or Trump, but considerably slower under Trump (projected 1.5 million vehicles less per year)

?? A Trump administration could mean changes to the existing IRA and BIL, but there will likely still be a big push for domestication of battery materials mining and battery production, particularly given many plants are in critical Red states or swing States.

???? There will likely be more production plants established in Mexico, by both Chinese and US, to supply cheaper EVs and batteries to the USA.

Largest transmission-connected BESS in the UK comes online

A new 100MW/200MWh BESS facility in North Yorkshire has now successfully been commissioned, becoming the UK's largest transmission-connected BESS project.

"Lakeside" is owned and operated by TagEnergy, following it's acquisition of the project in 2021. Project partners included Tesla (EPC), Habitat (optimiser), and RES (asset management).

Given the scale of BESS projects in the UK pipeline, Lakeside will likely not hold the title of largest for long!

India and the USA sign an important critical minerals supply agreement

The USA and India made?an MoU agreement last week, aimed at strengthening the supply chains in both countries for lithium, cobalt and other critical minerals used in EVs and clean energy applications. Priority areas will include identifying "equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of U.S. and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery"

Back in 2022, India and the EU launched the India-EU Trade & Technology Council (TTC) partnership, and this has also been shown to be fruitful for joint-collaboration so far, providing opportunities for technology transfer, market access, and joint-development agreements. More here

Tesla planning new battery innovation

Tesla is planning to release 4 new iterations of it's in-house batteries by 2026, primarily to be used in existing EV models but also the new robotaxi (autonomous vehicle) and the Cybertruck.

Tesla has been increasingly moving towards in-house 4680 battery cell production, as opposed to importing from Asian Tier 1s, but has faced challenges with scaling so far, particularly with it's dry-coated cells. However, the plan is for the 4 new battery versions to include this dry cathode technology.

All eyes will be on Tesla at the robotaxi launch event next week!

H1 2024 was tough for some UK battery funds but positive signs for H2

Some major funds in the UK BESS space have had a tough time in 2024, including Harmony Energy Income Trust and Gresham House Energy Storage Fund have both reported significantly reduced revenue returns in 2024, compared to 2023 levels and both went into cash preservation measures.

However, it seems like there's room for optimism in the second half of the year, particularly for Gresham House who say revenues in July and August bounce back significantly higher than the average for H1, and with new capacity becoming operational, new tolling agreements coming into force, and continued renewables capacity increases driving volatility, it looks like there could be some hope ahead!

It will be one to keep an eye on!

Northvolt cuts jobs

Anyone and everyone in the Energy Storage sector has been talking about Northvolt recently. It's been well documented (including in this Newsletter!) that the company has had a rather turbulent year.

In late September, the company announced it would be cutting 1,600 jobs in total (a fifth of the total workforce). This is a blow for the company but forms part of a company-wide cost reduction exercise, having dropped plans for their CAM plant and closed their Cuberg R&D entity in the US, earlier in September.

Northvolt has laid out plans to fully focus on achieving 100,000 cells per week production, primarily through the ramp up of their first 16GWh Ett battery cell production plant but halt any further expansion beyond that, for now.

Let's hope Northvolt can come through these very choppy waters and turn this around. I know some of the wonderful people involved and I'm optimistic that they can!

More enormous Government funding for US domestic Battery production

The US battery growth has been booming for some years now and this month, a fresh $3Bn was awarded to US companies by the Biden administration. This is part of the US' strategy to strengthen their national supply, amidst the global dominance of China, Korea etc. The grants will fund a total of 25 projects in 14 states, including Michigan, North Carolina, Ohio, Texas, South Carolina and Louisiana.

The Biden-Harris administration proudly stated that they are "committed to making batteries in the United States that are going to be vital for powering our grid, our homes and businesses and America's iconic auto industry"

Continued BESS grow in Poland, backed by European Commission

The fact the Energy Storage Summit CEE took place in Poland this past fortnight was apt, as the country's growth in the Storage sector has been well publicised recently. There was more encouraging news this week, with the European Commission approving a €1.2 billion state aid package to support further ESS deployment.

The initiative is set to support the installation of at least 5.4GW of new electricity storage capacity, through direct grands and loan funding.

Poland has been fertile ground for many developers looking at European expansion, particularly since the introduction of their Capacity Market auctions in 2023. We've had the pleasure to work with clients in Poland and we're excited about the growth prospects!

Groundbreaking recovered material battery partnership in the UK

Jaguar Land Rover will partner with Altilium, a UK battery materials recycler in a first of it's kind project. This will centre on producing and validating battery cells using recovered materials, from end-of-life EV batteries, using it's patented EcoCathode recovery process.

Critical materials will include lithium, cobalt, and nickel, and could be a huge step forward for the circularity as this can demonstrate derisking of its battery recycling process.

Partners for this project include the Advanced Propulsion Centre (funding) and UKBIC (production site). .

Recruitment News

• We're excited to announce a new retained search for a UK Country Manager for an exciting Smart Battery Storage scaleup from Europe. This role will be focused on the C&I ESS sector, with direct responsibility for building sales revenue but also building out a UK team.

To learn more and register your interest, visit our website posting here

• We're also engaged on a Chief Technology Officer (CTO) mandate with a UK long duration energy storage (LDES/ESS) startup, looking to scale from Lab through to first production phases. In this role, you'll oversee the overall technical direction of the company through their next phases of growth and internationalisation.

To learn more and register your interest, visit our website posting here

• In Germany, our team have our two senior mandates in Germany for our Smart Metering Asset Infrastructure client. The first being a Senior Business Development Manager and a new Financial Manager position (more info here)
• Finally, we're also looking to engage with senior commercial and sales candidates both in the UK and continental Europe, in the field of Flexibility Services, for some potential senior search mandates we hope to be able to announce very soon!

We've been delighted with our clients' feedback on our Opportunity videos for new executive search mandates. These 10-15 minute Q&A interviews recorded with your key hiring manager, give great insights into the opportunity and your company culture and values. Most importantly they help you stand out in a very competitive market!

This is just one of the key benefits you receive as part of our exclusive Executive Search service. Want to hire the best, go with an Executive Search from Hyperion Executive Search!

Deals

Here are the latest deals!

Voltfang - €8.1 million (Series A) - To broaden their product offerings, their advanced Energy Management System to maximize the power of its battery storage systems. Additionally, the investment will drive further market penetration across both C&I and Grid-scale applications.

tem - ￡10.5 million (Series A) - To help accelerate the development of their smart utility marketplace and forecasting platform and to support international expansion

Polarium - €44 million (Convertible Note) - To fund significant rollout of BESS projects across Europe

Powin - $200 million (Debt Capital) - This injection will be instrumental in supporting the company's working capital needs, continued innovation, and enhancement of the company’s financial flexibility as it expands its leadership position in the Energy Storage domain.

Sepion Technologies - $17.5 million (Grant) - To build their Advanced Battery Separator Manufacturing Facility in West Sacramento, USA. This new facility will initially produce 50 tons of proprietary polymer and 50 million square meters of coated separator annually - enough to power 50,000 electric vehicles.

EnergyX - $75 million (Retail) - This deal "democratizes investment" according to their Founder and CEO Teague Egan. The funds will support existing investments as the company further enhances its product portfolio to offer an end-to-end extraction and refinery process to produce battery grade lithium materials. It will also support two Tier 1 projects for lithium mining, in Chile and in the USA.

Anaphite - ￡10.4 million (Series A) - To scale up and expand it's dry coating electrode capabilities, to fully commission a new industrial scale plant, and support new hiring and R&D investment.

Polarium Energy Solutions - $49 million (Convertible Note) - To help return the company to profitability after a rocky 12 months. Its been challenging times, especially given the company was valued at over $1Bn back in 2022. This is welcome fresh funding for the company, and restores hope in the future of the ESS provider for Industrial and Residential customers.

Nanograf - $60 million (US DoE Grant) - To support the retrofit of a Michigan manufacturing plant, to produce 2,500 tonnes / year of their silicon-anode battery materials - enough to supply 1.5 million EVs. This is Nanograf's third manufacturing plant.

Nano One Materials - $12.9M (US DoD Grant) - This latest funding will help the company towards meeting it's objectives which primarily are the commercialization of their LFP battery technology and the scaleup into production phase.

Group14 Technologies - $200 million (US DoE Grant) - To fund the building of a silane gas plant, an essential ingredient for manufacturing its next-generation silicon-carbon battery materials. This facility will sit alongside their core BAM-2 factory, which is under construction.

Sector Insights

How BESS can save the EU billions! Show me the money! Those of a certain age will remember the famous Jerry Maguire line. I often think of this when discussing the merits of renewables and energy storage with clients. Often clients tell me that one of the core challenges is...?Read more

Europe's focus on implementation. Play to your Strengths! In recent years there has been a lot of encouraging policy and regulatory change, especially around market design reforms, to help improve the landscape for energy storage deployment. However, as Julien and Lars cover in this article, the actual...?Read more

The Virtual Grid transition. September marks a historic moment for the UK, and I'm not just referring to my 35th birthday (it's on 19th in case you were wondering). It marks the month we say goodbye to our last coal-fired power station. This closure is more than just a... Read more.

The Great Consolidation in Batteries is Real. The Great Consolidation in Energy Storage is here.? Once again, extremely insightful from Laurent and Gerard at Redefining Energy, talking about what is a rather alarming but frankly accurate picture of battery cell production.? The top... Read more.

Recruitment and Business Insights

Hiring a NED can transform your business.? Having supported a number of start-ups in hiring Non-Executive Directors (NEDs) over the last few years, I've witnessed first-hand the invaluable contributions they can make to a company's growth and success. The right NED brings a unique blend of...?Read more.?

What makes a great Chief of Staff? “What actually is a Chief of Staff?" - a question I received from a recent candidate I spoke to.? This past 12-18 months I've observed a steady increase in Chief of Staff opportunities being advertised amongst cleantech startups and SMEs....?Read more

Is your business supporting managers to deliver on your strategy? Important topic highlighted in this Times Raconteur piece, around the apparent problem of a lack of training for those promoted into managerial positions.? As the quote below shows, a high proportion of people promoted into management... Read more

I wanted to end this edition with some of my personal Must Watch / Must Listen Recommendations

1. ??Redefining Energy

Website

2. The brilliant Modo Energy Transmission podcast, this week with German market expert Lars Stephan

3. FullyCharged.SHOW & Everything Electric with About:Energy Founder & CEO Gavin White . We had the pleasure to support Gavin and A:E when hiring their VP of Sales who joined at the beginning of 2024 and it's great to see how far they've come!

If you enjoyed this edition of the Energy Storage News and Views, please share with your network and don't forget to Subscribe if you haven't already. There will be a new edition coming in a couple of weeks!

See you next time!

David