Due to insufficient production capacity, European battery prices may be 20% to 65% higher than Asian battery prices.

2024-04-17 10:51 · Lithium Battery Encyclopedia

China Energy Storage Network News: Morrow Batteries is one of the few lithium-ion battery manufacturers in Europe that provides the energy storage industry. Andreas Maier, the company's chief operating officer, recently accepted an interview with industry media to discuss the company's market strategy. and the future development of European battery production.

Battery factory operated by Morrow Batteries

The company will start operating its first lithium-ion battery production plant in Arendal, Norway this year, with an initial annual production capacity of 1GWh, increasing annual production capacity to 43GWh by 2028.

Like Norwegian battery maker Freyr, Morrow Batteries will produce batteries in the first phase of the plant primarily for sale to the battery energy storage industry. The company is selling lithium iron phosphate batteries to energy storage system integrators in commercial and industrial (C&I) and residential applications.

At the Giga Europe conference in Stockholm, Andreas Maier, chief operating officer of Morrow Batteries, said in an interview with the media that considering the falling battery prices and the lack of incentives for battery energy storage systems (compared to the electric vehicle market), in order to accelerate business development , Morrow Batteries mainly provides battery products for energy storage system integrators to remain competitive.

The Giga Europe conference is hosted by Benchmark Mineral Intelligence. This event brings together European battery supply chain-related manufacturers, including battery manufacturers, key material manufacturers, traders and financing institutions.

Enter the battery energy storage market faster

Maier said, "This has to do with the development of the battery storage market, and the lead time to provide batteries to automotive customers is much longer, maybe five years.

Staying competitive is a challenge in a market flooded with low-priced lithium iron phosphate batteries. We still have opportunities to work with smaller companies that don't necessarily supply batteries to large suppliers, especially mid-sized companies that emphasize sustainability and independence from the Asian battery supply chain. "

Battery production plants in Sweden and Norway can achieve energy conservation and emission reduction targets by using electricity from hydropower facilities. Using renewable energy can reduce a large part of the carbon footprint of battery production plants.

However, Morrow Batteries still needs to source its cathode active material (CAM) for lithium iron phosphate batteries from China. "China dominates the lithium iron phosphate battery supply chain. We are researching and discussing with customers the production of LNMO (lithium nickel manganese oxide) batteries," Maier said.

Considering that batteries account for the majority of the cost of energy storage systems, Morrow Batteries hopes to provide more products for the battery energy storage market. "We are currently a battery supplier, but we are considering a strategic partnership and possibly even a joint venture to become a battery energy storage system supplier," Maier said.

wider market

Maier worked for South Korea-based battery supplier Samsung SDI for six years from 2012 to 2018. Therefore, he has his own views on Europe's competition with Chinese and Asian battery manufacturers. How to deal with competition from Chinese and American battery manufacturers is a major theme at the Giga Europe conference.

Maier said, "I think European battery producers such as Northvolt, PowerCo, ACC, Verkor, Morrow Batteries and others need to expand market share. Whether they will further expand battery production scale will depend on the scale and operating efficiency of battery factories. Asian Battery Producers also produce batteries in Europe, and the scale of their production will depend on the market share held by European battery producers."

Maier claims that compared with lithium-ion batteries produced in China, batteries produced in Europe are 10% to 15% more expensive because of lower sales volumes. Batteries produced in Europe are more expensive in the energy storage market. He expects this situation to remain unchanged for a period of time. A battery energy storage system integrator said that due to insufficient production capacity, the price of batteries produced in Europe may be 20% to 65% higher.

Large European automakers have begun partnering with major battery manufacturers to produce batteries. These automakers have historically shifted from producing components to sourcing them and assembling them using their own technology and experience.

Maier said, "Their role in battery production marks a reintegration into production, although it is not clear what their strategy is. But it can be seen as a long-term preparation for autonomous production. If they don't do that, I guess they can only procure Batteries provided by Asian battery manufacturers.”

The main shareholders of Morrow Batteries are Norwegian energy group Å Energi, PKA (Maj Invest), Siemens, ABB and Nysnø.

Author: Liu Boxun

Source: China Energy Storage Network