#15 Energy Storage News & Views

I return with another Energy Storage News & Views after a short hiatus due to a combination of busy delivery on active search mandates at Hyperion and a mini-moon / holiday with my wife in New York and Toronto (we even squeezed in a trip to Niagara Falls and Niagara on the Lake - breath taking!)

We're heading into the final weeks of the year, and Q4 has been rather eventful in the Energy Storage world!

US Election

Firstly, the first implications of a Donald Trump election victory are being predicted. Tariffs could be on the way for Chinese imports, including those via Mexico and Canada. This could have serious impact on the country's battery outlook, considering the majority of widely used LFP batteries are Chinese owned and supplied. The US will either have to bite the bullet on higher prices of domestic LFP battery production or some analysts predict a shift to NMC batteries again. In Europe there seems to be more encouragement for US-European trade as well as picking up of business and investment from China, who shift away from the US. Let's see what will happen!

Next, two polarising stories relating to the European battery sector...

Northvolt Demise

Sad news recently with Northvolt entering bankruptcy. Once seen as the beacon of hope for European battery manufacturing, the company lost its way, despite receiving over €15 billion in outside investments. The reasons for this can't be labelled as a widespread issue for the entire European battery sector. When you look deeper, there was a cocktail of issues relating to strategy i.e. trying to cover the full battery value chain, some poor organisational and issues leading to productivity problems, and some health and safety concerns. Check out the fantastic Redefined Energy podcast (featured below) for more on the reasons for the demise.

The flame is not completely out, but it's been a very challenging few weeks for all concerned.

CATL JV with Stellantis for new EU Gigafactory

In light of the Northvolt news, it's been great to see this week's positive news. Stellantis, the major European car group will partner with CATL to build a €4 billion battery plant in Zaragoza, Spain. Their aim is to produce affordable batteries for mass market EVs (Peugeot, Fiat etc). This is CATL's third European plant and this for me is how realistically Europe will compete - collaboration with China and Asia, and not trying to go standalone. It's the kind of good news story the European battery sector needed.

Stationary Energy Storage Booming

We continue to see a surge in stationary ESS capacity being developed, as you can see in my recent post

Training the next generation of the European battery workforce

"How do we tackle the skills shortage in the battery sector? is probably one of the most common questions I hear, as a recruiter in Energy Storage. Our clients tell us of the challenges on hiring the next wave of engineers, technicians, scientists, and project managers for their organisations and with the sector expanding year on year, it's clear we need more investment in "grassroots" training and development.

It's therefore great to see the InnoEnergy Skills Institute reach a milestone of 100,000 workers receiving training through their European Battery Alliance (EBA) Academy. This includes both upskilling and reskilling talent from other sectors, who want to move into the battery sector. Initiatives like this will feed the funnel of talent coming into the sector and help to keep pushing boundaries of excellence amongst our companies, instead of relying on bringing in expensive talent from overseas all the time. More details here

Recruitment News

We're currently mandated on searches for 2 key commercial roles for a European Smart Battery provider (HW & SW).

Firstly, a Chief Commercial Officer - we need an experience scaler with an international pedigree - someone who can help elevate a company sales from tens of millions to hundreds of millions of Euros.

Secondly, a UK Country Director who will be "first boots on the ground" in the country, helping to drive a sales pipeline and build a regional operation and team.

For both roles, experience in battery storage and / or energy management software is critical.

We are also just about to launch a new Sales Manager position for an exciting battery analytics startup, who are now backed by strategic investment from a well-renowned global engineering and electronics company. They are scaling the team and we need an experienced sales professional with direct experience in battery technology (ideally SaaS or Analytics) and market knowledge in ESS or EV / E-Mobility.

Finally, we have a Business Development Manager, DACH role for a smart buildings solutions provider, including smart energy technologies. This role requires someone with a technical background (vocational or university) and a natural appetite for new business sales on a regional basis.

Contact me - [email protected] to learn more about these exciting searches!

Deals

Here is a selection of latest deals in the sector!

CarbonX - €4 million (Early VC) - As an extension on its previous €10 million growth funding round, this will be used to increase their battery test capacity, secure feedstock and offtake and prepare for a feedstock mixing facility in Rotterdam, Netherlands.

Enfinity Global - €165 million (Debt) - The major IPP raised further capital to fund expansion of projects in Italy, primarily solar but they have a rapidly growing Energy Storage pipeline too.

BeePlanet Factory - €5 million (Early VC) - To accelerate its international expansion and develop new innovative business models.

Zitara - $17 million (Series AA) - To expand its engineering capabilities and enhance AI and ML capabilities in their Battery management software and expand commercially with new customers and partners in Grid-tied Energy Storage and Mobility.

Molyon - ￡3.57 million (Grant) - To develop their next-generation sustainable lithium-sulfur (Li-S) batteries in their Cambridge, UK facility.

Ion Storage Systems - $10 million (Debt) - To help execute their technical and commercial roadmaps for delivery of their solid-state battery technology to the market

Echion - ￡10 million (Series B) - To accelerate commercialisation of their niobium-based anode material with cell manufacturing partners.

Nanoramic - $44 Million - To advance the commercialization of their innovative patented electrode technology across multiple applications.

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

1. ??Redefining Energy - Brilliant episode where Laurent and Gerard run through some of the real reasons why Northvolt ran into the issues they have. Fascinating!

2. Battery Insiders podcast - Celina Mikolajczak of Lyten discusses an exciting nex-gen Li-S battery, her personal story and experience around scaling battery production, and Lyten's vision for scaling their technology.

Finally, I'd like to ask everyone who reads this to please join our Executives In Energy Storage group on LinkedIn, where you can find insights articles around industry news and talent / hiring trends, and where you can network with like minded leaders in the Sector.

Visit the group here

So that's it for 2024. I hope you've enjoyed the Energy Storage News and Views this year and next year we'll be back with even more editions. Don't forget to share with your network so they can subscribe. We'll also be launching a new Market Review concept - keep your eyes peeled for that one!

For now, hope you all have an amazing end to the year and Christmas and New Year's celebrations with family and friends.

See you next year!

David