Batteries International — issue 92 by hamptonhalls

Issue 92

Summer 2014

The puzzle that is Europe Why trans-Atlantic views on energy storage differ so much

From start-up to world class player, China's ATL The joys of lead, the early days of EVs

The Trojan story: 1920s LA repair shop to giant Sally Miksiewicz, East Penn — the legacy

Bringing the industry try together www.batteriesinternational.com national.com

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CONTENTS COVER STORY: EUROPE’S GRID COMES OF AGE 46 Turning theory into reality. That’s the next step for Europe where future grid developments have been characterized by energy storage pilots rather than bankable investments. But the technology’s full commercial potential is starting to appear. Large scale energy storage moves to the fore in Europe as momentum for change

ESS offers way to unify renewable power gap in Italy’s north-south divide

56 Time to make money on grid scale investments 46

EDITORIAL

Think big, think stupid — but leave a legacy

OBITUARY

East Penn’s much respected Sally Miksiewicz died in an accident on June 20

PEOPLE NEWS

Axion Power’s Granville steps down for health reasons, David DiGiacinto becomes chairman and CEO • Kreigler joins Nesscap board as adviser • Digatron appoints Campbell as CEO • Hartman moves to Farmer Mold • ALABC formalizes appointment of Ellis as chairman, Kolisnyk as PAM chair • Monahov, Meissner joint winners of Gaston Planté medal • Rockwood announces executive changes as Ghasemi steps down as CEO • Skeleton appoints Younicos’ McDougall as a non-executive director • Ron Van Dell joins ViZn Energy Systems as chief executive • Ioxus appoints senior sales figures • Bradley Hansen appointed president and COO of ZBB

NEWS

Sally Miksiewicz: missed by all at East Penn and elsewhere 8

Princeton and Aquion Energy to build largest AHI Battery System • GS Yuasa plans 1MW-output system backed by lithium ion batteries • EaglePicher receives grant for sodium-beta battery for grid storage • Next gen lead acid batteries for ISS • LG Chem to supply electric car batteries to SAIC, Qoros • Corvus gets approval for marine Li-ion battery banks • NEC commissions 5.7MWh of grid energy storage installations in the UK • NEC closes A123 acquisition • Further grid testing project with first lithium-titanate 1MWh SCiB- • Shot in the arm for lithium as GM Invests $449 million for Next Generation Electrification • Electrovaya provides battery packs to Dongfeng Motors, breaks into mining industry • Ioxus opens second plant and gets series C funding • Graphene improves supercap performance according to Californian researchers • Dual leadlithium battery research by Ford, Samsung • GM, University of Michigan extend research programme • Corporate restructuring at Energizer • JCI signs auto supply with China’s SAIC • LG Chem plans China battery plant • BYD win huge electric fleet order • EnerDel to supply battery packs for Oahu Transit Services • Redflow supplies zinc bromine flow batteries to SMS • Ambri gets ‘C’ round funding • New EFRC funding awards announced • Axion Power receives $1.1m order for 4 PowerCube Energy Storage Systems • ABB flywheels to stabilize grid for Alaska island • Babcock & Wilcox acquire MEGTEC • MESA1 energy storage in Washington state advances • Nexeon completes commissioning of manufacturing facility

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Axion’s Granville steps down for health reasons: DiGianto new chief exec 10

Boris Monahov: with JCI’s Meissner, this year’s Planté award winners 12

Batteries International • Summer 2014 • 1

CONTENTS PRODUCT NEWS

Brilymer’s GO lead acid battery: close to NiMH, (1400W/kg this year?) 41

HighWater gets patent for GO battery • Yuasa releases high performance new lithium ion batteries for industrial applications and VRLA battery for Toyota hybrids • Saft launches Seanergy lithium ion modules for marine use • Maxwell expands ultracapacitor range • Texas Instruments introduces multi-cell battery monitors for 12V to 48V industrial lithium ion batteries • Ioxus releases new iMOD X series • EnerSys adds 34R TPPL battery To Odyssey Performance series

COMPANY PROFILE: ATL

One of the most extraordinary stories in the history of lithium ion battery manufacturing has been the growth of a Hong Kong start-up to the world’s largest manufacturer of lithium pouch batteries. Batteries International spoke to two of the architects of its growth, Mike Chang, chairman and Robin Zeng, president and CEO as well as US battery veteran Bob Galyen who relocated to China as part of a vision for the future. Part of the interest in ATL’s Chang and Zeng has to come from their cultural complexity — they have a firm that deliberately choose to root it’s commercial (and management) approach in terms of its cultural heritage but also are more than happy to compete with other world class companies. ATL’s Mike Cheng (top) and Robin Zeng: from tiny startup to multi-blilion dollar PRC giant 61

THE RISE, RISE AND AMBITIOUS RISE OF BYD

The latest bus order for China’s wealthiest man, Wang Chuan-Fu, shows that the automotive arm of BYD continues to flourish. But that’s not to say that everything is going to be plain sailing.

HOW TO VALUE YOUR BATTERY COMPANY

Getting the funding for a start-up battery firm, is problematic in many ways. Not least of all by finding what one should pay for it.

A HISTORY OF ELECTRIC VEHICLE POWER STORAGE

The electric vehicle story — at least till a decade ago — was always one of how lead acid was the automotive power of preference. The early days were even more exciting than modern times. And mostly the range was much, much longer.

CONFERENCE IN PRINT LITHIUM ION DOUBLE CELLS

A new type of a double-cell lithium ion battery using a configuration different from the conventional aluminium-laminated battery has been developed and evaluated Electric vehicles: the way we were (circa 1890) 91

THE TROJAN STORY

120

From a small repair shop in downtown Los Angeles to an international battery firm, the history of Trojan is also that of inventing and reinventing itself to remain successful

Looks like a fun spot for an ELBC party? Europe’s biggest lead event moves to Edinburgh 126

ADVERTISING DIRECTORY

125

THE LAST WORD

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Birthday bonanzas at BCI • Party time at ELBC • Edinburgh R&D electrolyte analysis on the rocks • Farewell Carol • Human directional signpost guidatory thingies • Fine dining Bulgarian style ILA • A little light fireside reading • Why the celebrations at Batteries International?

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EDITORIAL Mike Halls • editor@batteriesinternational.com

Think big, think stupid — but leave a legacy We were privileged to be among the elite few that witnessed the (then) signing of the biggest loan in UK commercial history. The year was 1987. And the largest ever syndicate of international banks — think Citi, JP Morgan, Chase Manhattan, Barclays, BNP, UBS — had gathered to agree an enormous project financing. The project was to finance construction of a tunnel linking Britain to France. The facility was for £5 billion ($9 billion)

Just think of the revenues needed to generate that! I can’t remember our final guesstimate but we ended up reckoning that trains would have to run every 20 minutes around the clock and be completely full for the project to work. And, of course, any construction delays would be catastrophic. The slightest disruptions to the service would haemorrhage money. In the end the tunnel came in some 80% over budget.

Such was the enthusiasm for the project that the lemming effect kicked in. In all 170 international banks agreed to be part of the lending group. The French and the UK governments joined the party too.

The bankers weren’t necessarily stupid. Their credit committees would have gone through the numbers in the same way that we did.

And two years later the refinancings and the refinancings, which would eventually result in the bankruptcy of the Channel Tunnel, ended in tears.

Their fault was that they suffered from that odd mix that characterizes humanity on the edge of gross stupidity — optimism, enthusiasm dashed with a mix of blind faith, resulting in delusion.

What seemed odd about it — at least to those of us nifty with a calculator and with a healthy disregard for contractors’ promises of finishing on time — was that there seemed no way that these bankers would get their shareholders’ money back.

At the time of the decision about building the tunnel, 15.9 million passengers were predicted for Eurostar trains in the opening year. In 1995, the first full year, actual numbers were a little over 2.9 million, growing to 7.1 million in 2000, then dropping to 6.3 million in 2003.

With interest rates in double digits the train line would have to make a profit — not turnover but profit — of $3 million a day just to stay even. Not forgetting, the $9 billion of capital that would have to be repaid at some point.

Academia has been fascinated by this. How could these experts get these projections so spectacularly wrong?

Publisher: Karen Hampton, karen@batteriesinternational.com, +44 (0) 7792 852 337 Editor: Michael Halls, mhalls@batteriesinternational.com, +44 (0) 1 243 782 275 Supplements editor: Wyn Jenkins, wyn.jenkins@serenglobalmedia.com, +44 1792 293 222 Business development manager June Moultrie june@batteriesinternational.com +44 (0) 7775 710 290

Danish economist Bent Flyvbjerg has spent most of the last two decades puzzling at humanity’s inability to understand this. His book, Megaprojects and Risk,

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Research editor William Aslan will@batteriesinternational.com Staff reporters: Philip Moorcroft, Niamh Kenny

The contents of this publication are protected by copyright. No unauthorised translation or reproduction is permitted. ISSN 1462-6322 (c) 2014 Mustard Seed Publishing, UK company no: 5976361. Printed in the UK via ThisismethodUK

Disclaimer: Although we believe in the accuracy and completeness of the information contained in this magazine, Mustard Seed Publishing makes no warranties or representation about this. Nor should anything contained within it should be construed as constituting an offer to buy or sell securities, or constitute advice in relation to the buying or selling of investments.

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EDITORIAL an Anatomy of Ambition, looks at how strategic misrepresentation — deliberately mistaking the likely outcomes of planned actions — plays a part in huge project financings. Flyvbjerg reckons that nine out of 10 projects face a cost overrun, with costs 50% higher than expected in real terms not unusual. And then, of course, there are the implications from all this and many of these are not so immediate to grasp. So how does this fit into the energy storage industry? The most obvious of these has been the way that US administrations have sought the rational through the irrational. The theory that if we throw huge amounts of taxpayers’ money at the nascent lithium battery industry then we’ll get spectacular results doesn’t hold water unless these same forces of optimism and delusion are not fully operational. But there’s no need to pick on the US, look east to China and there’s been a similar knee-jerk reaction to huge projects. As a country, it would appear that the encouragement of government meant that LiFePO4 was the basic lithium chemistry chosen for adoption — a decision that could well look as if it will cost billions of misspent money in the end. Both China and the US could each be proven wrong if, as Toyota believes, the future electric automotive business will be based on fuel cells rather than batteries. Flyvbjerg talks about the “four sublimes”: the excitement of engineers and technologists building the newest or largest item of its kind; the rapture politicians receive from building monumental works that increase their public profile; the delight of businesses and trade unions generating money and jobs; and the aesthetic pleasure generated by iconically large design. All this optimism contributes to overestimates of benefits and underestimates of cost. The economist Albert Hirschman decided that the underlying principle was “the hiding hand” — if people knew the actual costs of projects like these, they would never undertake any, so there must be a mechanism that hides this reality from people, engendering progress but also the occasional disaster. Flyvbjerg argues instead that what is called for is greater and more detailed studies of why some huge projects succeed, while others don’t. But as ever in the development of these things, the law of unintended consequences is at work. Wasted money is indeed wasted money but that’s not to say that everything is wasted.

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The history of great ventures and the rise of great industries is littered with the legacies of what they leave behind. The railway boom that littered the UK initially and later Europe and the US with unprofitable lines and massive shareholder losses also left an infrastructure that is recognisable today. It also made some of these pioneers, such as the so-called ‘robber barons’ in the US — think the ruthlessness of Vanderbilt — some of the richest in the world. Some 20 years ago a similar territorial battle emerged — a race to put in place the huge fibre-optic highways across the western world that would serve the internet of the future. Huge investments were made, investor support was massive but in the end the two major players for the space ran out of money. The shareholders went bust but, like the millions that use the Channel Tunnel each year, their legacy was the hundreds of millions of miles of fibre-optic cable that we use today and run through cities across the planet. So as we see mankind’s energies invested (or frittered, if that’s your view) in the mega-giga-giga battery-making plants of the future, or the smartest of smart grids that will sweep across the planet, we’re not going to worry. We don’t have to fear the consequences of these failures — as long as we’re not investors that is — but rather we should just wonder about what legacy we and our children will inherit. So to misquote the poet William Blake … “the road of excess leads to the palace of wisdom”. Let’s face the Next Big Battery Thing with optimism.

Batteries International • Summer 2014 • 5

OBITUARY

SALLY MIKSIEWICZ 1962-2014 It is with great sadness that we have to announce that Sally Miksiewicz, chief executive ofﬁcer of East Penn Manufacturing, died on June 20. She was a much-loved, much-liked and much-admired member of the energy storage industry. She was known for her lively personality, business acumen and down-to-earth kindness and modesty. According to the local press some 3,000 people came to pay their respects at her Celebration of Life Memorial Service on June 27. Sally started work at the family company in June 1984 after graduating with a BA in business management and sociology at Moravian College, Bethlehem, in Pennsylvania. On the day of the funeral, the college, of which she was on the board of trustees, flew its flag at half-mast in memory of Sally. Sally was the daughter of DeLight

Breidegam, who founded East Penn on his return from the second world war. DeLight and his wife survive his daughter’s death; as does her brother, Dan Breidegam, vice president of metals and commodities management for East Penn. DeLight was keen that Sally learnt the family business from the ground up. She started in sales. In her 30 years with the firm she progressed from junior positions to ever more senior ones, eventually moving from being in charge of her own territory to a sales director of one of East

Penn’s divisions and then into greater management positions. She was fortunate to be around in the massive expansion of the company during the 1980s and 1990s when East Penn rolled out warehouses across the US and Canada and branched out into other product segments requiring battery power from marine applications, to golf carts, to wheelchairs. She later worked closely with the personnel department — work that rounded out her understanding and belief that it was possible to create a

Father DeLight Breidegam, founder of the company; Dan Breidegam, brother and East Penn treasurer

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OBITUARY corporation that could think and act like a family. And, she believed, hand on its legacy to families yet unborn. “She made it her mission to make East Penn a good place for employees, and the company has been named one of the best places to work in the state for 14 consecutive years,” says Dan Langdon, president of East Penn. She would never take credit for that, but I’m here to say Sally Miksiewicz made it happen. She had an unselfish love for this business.” In the numerous tributes that Batteries International gathered for Sally, one of the most striking characteristics that everyone alluded to was the relationships she forged with everyone — high and low, East Penn customer or supplier — at a personal level.

Loyalty “Sally cared about people in a way you don’t often see,” says John Wood, chief executive of Ecoult. “Whenever we’d bring customers to East Penn she’d drop everything and show them around. And on these tours she seemed to know everyone by name. She inspired loyalty from the people she worked with and was fiercely loyal to them in return.” Before her appointment as chief executive of East Penn in 2009 she was vice chairman and secretary of the corporation, working in government affairs and leadership development, among other duties. Sally had many business accomplishments, but one that will be remembered is the way that she pushed for East Penn’s adoption and manufacture of the UltraBattery, a landmark that drastically improved lead acid battery performance, under partial state-ofcharge conditions. At first East Penn’s interest was mostly in automotive applications of the UltraBattery but Sally, realizing its potential, also pushed for developing the UltraBattery for stationery and other applications. “In her most recent years, Sally bridged the gap between the leadership of her father and the challenges of this century,” according to Langdon. “She was the key figure in getting US Department of Energy support for a 3MW advanced battery frequency regulation project as we moved to redirect the company into new avenues of business.” There was another side to Sally that shone through in her approach to business generally. Perhaps a word

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PNM Prosperity Energy Storage Project: Steve Willard, Sally Miksiewicz, and John Wood

like stewardship would be best suited. Sally loved the East Penn family and saw herself as helping to lead the company forward and passing it on strong for generations to come. Sally would always say that one of the reasons she loved East Penn so much is that the company embraces the concept of treating each other right and taking care of its customer and surrounding communities. She was very proud of the company’s progress over the years as well as its ability to adapt to change, but was always mindful of its core beliefs and values. That commitment, deeply embedded throughout East Penn, was largely the result of her dedicated leadership. Business acumen and an understanding or vision of the future are different things. “Sally had both,” a colleague at a supplier firm told Batteries International. “She saw that grid energy storage was going to be an important part of everyone’s future — renewables such as wind power and solar were going to change everyone’s lives.”

Stewardship In effect she saw the positive impact she could contribute to that future through combining energy storage innovation with East Penn’s strong commitment to environment stewardship and recycling. Bob Galyen, chief technology officer at ATL, one of the largest lithium pouch manufacturers, says: “her commitment to a better environment was absolute. She wasn’t just mouthing words, I remember sharing a panel discussion with her and realising that to her environmental responsibility

was as much core to her thinking as it was to her business.” There is no question that Sally’s energy and enthusiasm was boundless. Others said that once you got behind the outgoing and fun person she was a very serious person. “She was absolutely committed to the company and the people within it,” one battery veteran said. “What was so surprising to those of us who knew how accomplished she was, was her modesty. It’s a rare quality to find in this day and age.” But most people, however, saw an intelligent woman with a love of fun and life — something that is hard to put down on paper.

Legacy “Sally was the driving force and passion that helped carry out the legacy of the generation that came before her. She led with integrity advancing the company’s position while caring deeply about her fellow workers, the customer, community, and environment,” says Langdon. “The East Penn family is dedicated to sustaining and growing the company just as Sally would have wanted. Our conviction is to effectively manage, preserve and protect what we have built together. She was an inspiration to us all and she will be deeply missed.” Sally’s death came as a complete surprise. She was hit by a pickup truck early in the morning while jogging. She is survived by her children, Timothy, Daniel, Katelyn and Matthew and her life partner, Victor Rodriguez as well as her parents, DeLight and Helen Breidegam and brother Daniel. Sally was just 52.

Batteries International • Summer 2014 • 9

PEOPLE NEWS

Axion’s Granville steps down for health reasons, David DiGiacinto becomes chairman and CEO Tom Granville has stepped down as chairman and chief executive of Axion Power, for what the firm calls “a significant health problem”. David DiGiacinto became the chief executive on July 1 and chairman of the board. DiGiacinto was appointed to the board in a newly created position this February. Granville, who has nurtured the firm from its initial troubled days as C&T Technology/Mega-C, became the first chairman of Axion, in 2003. He remains on the board of directors and has signed a new three year employment contract to be special assistant and liaison to DiGiacinto. He says he will continue to work from the firm’s offices in New Castle, Pennsylvania. The firm has issued re-assurances that business will continue as normal. DiGiacinto said, “We all wish Tom well in resolving his unexpected health issues. I am looking forward to continuing to work with him. Our vision for the company has not changed, nor have our short term and long term objectives.” Granville said, “I have complete trust in Dave DiGiacinto, an individual

with a strong and diverse business background, leadership skills, and the high moral character to lead this company into the future. It became very apparent in the last several weeks, leading up to this transition, that Dave is a natural choice to take this company to the next level. DiGiacinto is also managing director for the Colman Group with which he has an independent affiliate consulting agreement. He has run his own business consultancy, Bethany Enterprises since 2012, and advised several industrial companies in western Pennsylvania. From 2009 to 2012, he was with National Pretzel Company, where he managed an organization of 750 people as it transitioned to become part of the ConAgra Foods group. While he was there, the firm doubled its EBITDA (earnings before interest taxes, depreciation and amortization). Before that DiGiacinto worked at Minrad International, a NYSE listed pharmaceutical and medical device company. While there he helped to secure new financing of $40 million and was primarily responsible for sales revenue dou-

Tom Granville (left) steps down and David DiGiacinto steps in as chairman and CEO

“I have complete trust in Dave DiGiacinto, an individual with a strong and diverse business background, leadership skills, and the high moral character to lead this company into the future.” — Granville bling. The company merged with Piramal Healthcare, a transaction that was completed in February 2009. DiGiacinto was a senior managing director for Spencer Trask Ventures from 2000 to 2008, where he co-managed a portfolio of 10 technology-based early stage and start-up companies. During his time at

Kreigler joins Nesscap board as adviser Nesscap Energy, the ultracapacitor developer, has appointed George Kreigler III as a senior adviser to its board of directors with a specific mandate to advise on corporate strategy and business development as well as to support Nesscap’s fundraising efforts. Kreigler was chief operating officer of Maxwell Technologies, the capacitor firm, from August 2009 until April 2012.

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Before that he was senior vice president of operations at Maxwell. He has more than 30 years of technology operations management experience, including supervision of multiple large-scale offshore manufacturing facilities. Before joining Maxwell, Kreigler was a senior vice president and general manager of storage systems at Quantum Corp.

Spencer Trask, some of the portfolio companies went public, some were enlarged by acquisitions, and several were given additional financing. DiGiacinto was with Pfizer from 1982 to 2000, in its Specialty Chemical/ Food Science Division and its Consumer Health Care Group. He eventually grew from his marketing and business development positions, to a full P&L responsibility for Pfizer Latin America and, later, the Worldwide Brewery and Dairy Division. Axion announced in March the appointment of James Smith as a consultant to the company and the resignation of its chief financial officer, Stephen Graham, who joined Axion last October.

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PEOPLE NEWS

Digatron appoints Campbell as CEO Digatron Power Electronics has promoted Kevin Campbell to chief executive of its Aachen, Germany based company. Campbell was formerly vice president of international business development. He joined Digatron Firing Circuits, an affiliate company in the US, in October 2012. He had been groomed for the top position since his recruitment. A Scot by birth, and an electronic and electrical engineer by background, his career in the battery industry has meant he has lived in the UK, the US and Australia. Before Digatron, he was business development manager for ECOtality, a firm involved in the clean electric transportation sector supplying EV charging infrastructure and fast charge technology to the airline and material handling industry. Rolf Beckers, the founder and owner of the company, remains group chairman. Last year Beckers celebrated a double distinction: 45 years since forming Digatron

as well as his 65th birthday. Campbell will remain at Digatron’s headquarters in Aachen, Germany. Digatron Power Electronics has been busy expanding and implementing new partnerships throughout the Digatron group. “This includes: continuation of the joint venture with TBS (UK) in China; opening a new manufacturing facility through a joint venture with Ador Powertron in India to create Ador Digatron; securing the Chinese representation of Källström Engineering; strengthening the team Inbatec relationship with turnkey acid recirculation formation solutions; and the expansion and restructuring of its US operations,” says a Digatron official. “We are also launching an industry first product range with energy saving battery test equipment.” Digatron Power Electronics is an international group of companies with engineering, manufacturing and service facilities located in Germany, the US, China and India.

Kevin Campbell (left) with Digatron founder Rolf Beckers and Firing Circuits founder John Mills

Nexeon hires Sony three Nexeon, the UK silicon anode technology developer of lithium batteries, has hired three senior researchers from Sony Corporation to be based in their offices in the UK. Kenta Yamamoto, Kengo Ichimiya and Akifumi Nakamura have been responsible for major battery developments in the last few years, and bring with them many years’ experience of fundamen-

tal research and advanced development leading to commercialization of novel battery designs. Yamamoto was previously with the Primary Battery Division of Sony, and has worked on both anode and Mg-ion cathode systems. Ichimiya has worked on polymer battery technology at Sony, Akifumi Nakamura has worked on silicon anodes and cell optimization.

Hartman moves to Farmer Mold Terry Hartman, global sales director at Bitrode, the US battery testing machine manufacturer, is to move to Farmer Mold in mid-July as a director of sales and marketing. Farmer Mold, based in Florida, makes specialist machines for lead acid battery manufacturing. Hartman, who spent nine years in the US Navy before joining Bitrode in 2001, worked his way up from a service technician to director level. From 2012 onwards he has worked exclusively in the Asia-Pacific region. Hartman, who will continue to use St Louis in Missouri as a base, says he is excited as he will have a roving brief with no specific geographic mission. That said, he says, he leaves Bitrode with fond memories. “I’m very appreciative to my Bitrode

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family for allowing me the opportunity be a part of their team for so many years. I’ll treasure fond memories of my colleagues. “But I’m also excited to be able to work for Jim Gilmour [the chief executive at Farmer Mold] who I’ve known and respected for

years, and the people at Farmer Mold. Jim’s customer core values and expectations for his people are high and are the reason for the successes of the company. It’s motivating and energizing to be a part of something great.” Asked about moving from advanced battery testing machinery to lead acid Hartman says “As industrial survey after survey shows the demand for lead acid batteries continues to grow. `”Energy storage isn’t confined to one chemistry,” he says. “Farmer Mold is tapping into a new wave of international customers, particularly from developing nations, for the lead acid industry,” says Jim Gilmour. “Terry’s appointment will help us reach out to these new and exciting markets.”

Batteries International • Summer 2014 • 11

PEOPLE NEWS

ALABC formalizes appointment of Ellis as chairman, Kolisnyk as PAM chair Tim Ellis, chief technology officer of RSR Corporation, was elected as the new ALABC chairman in April. Paul Kolisnyk of Teck Metals became the new chair of

Tim Ellis, new ALABC chairman

its committee for public affairs and marketing. The appointments were made at the group’s annual meeting, held on the sidelines of BCI’s 126th Annual Convention in San Diego. At the previous steering committee meeting in Singapore last September, Ellis was chosen to step in as interim chairman to replace long-time ALABC champion David Prengaman. Ellis has an extensive scientific and technological background and more than 15 years of active participation in ALABC meetings and management. Ellis confirmed that he

is working with ALABC president David Wilson and ALABC programme manager Boris Monahov to develop a new strategic plan that will continue the work of previous ALABC programmes but also maintain a focus on the research and development work of the consortium. Kolisnyk was brought into an interim position at the start of the year to lead the PAM committee after former chairman John Likarish of Doe Run announced he would be stepping down at that time. As the current association liaison for Teck and a

long-time supporter of ALABC marketing initiatives, Kolisnyk was considered a strong candidate for the PAM chairmanship and has been (along with ILA executive director Andy Bush) a leading advocate of strategic planning for the consortium’s marketing and communications activities. Following election of the chairmen, ALABC marketing and communications manager Chip Bremer provided an update on PAM activities, including the development of a strategic plan for ALABC’s marketing and communications activities.

Monahov, Meissner joint winners of LABAT’s Gaston Planté medal Eberhard Meissner and Boris Monahov were winners of possibly the most prestigious award in the lead acid battery industry — the Gaston Planté medal, given out every three years at the LABAT conference held in Albena, Bulgaria. “In a special ceremony we award the medal to a prominent scientist for his significant contribution to the lead-acid battery science and technology,” said Detchko Pavlov, the conference organizer and distinguished academic. “The selection is made on a twostep procedure. First, members of our international advisory committee send their rating of the three most distinguished scientists who should compete for this award. Second, the nominating Planté medal committee summarizes all proposals, nominates the three highest ranked candidates for this award and raises the winner.” This year, however, four scientists (out of a total of 28 proposed) were been ranked highest by the members of the two international committees. As there were two third-ranked candidates with equal

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number of rating points, both of them were nominated. The four nominees for the 2014 Gaston Planté Medal were: Boris Monahov, ALABC/ILZRO from the US; Eberhard Meissner, Johnson Controls Power Solutions EMEA, Germany; Geno Papazov, IEES, Bulgarian Academy of Sciences, Bulgaria; and Jun Furukawa, The Furukawa Battery Co, Japan. This year there was a tie and Monahov and Meissner were joint winners. The only time this had happened before was in 2011 when

Lan Lam and Ken Peters were in a similar tie. Monahov — who is profiled in the next issue of this magazine — gave a moving as well as humorous speech on the historical reasons that drew the world’s battery industry to this particular stretch of the Black Sea coast. Meissner gave a similarly exceptional presentation on lessons that he had learnt over the years from dealing with new battery concepts. In a nutshell, trust evidence that is provable and repeatable, he said.

This June’s Gaston Planté awards ceremony in front of a packed auditorium in the Black Sea resort of Albena

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PEOPLE NEWS

Rockwood announces senior executive changes as Ghasemi steps down as chief executive

Seiﬁ Ghasemi is to become chairman and president of Air Products & Chemicals

Seifi Ghasemi stepped down as Rockwood Holdings’ chief executive on June 30, to become chairman and president of Air Products & Chemicals. Robert Zatta became acting chief executive on July 1, in addition to his job as chief financial officer. Zatta has been senior vice president and chief financial officer of Rockwood since April 2001. Ghasemi remains chairman of Rockwood’s board of directors until the end of the year. After that he becomes a board director. Thomas Riordan, senior vice president, law & administration and corporate secretary, has become executive vice president and chief administrative officer. Steffen Haber, president of Rockwood Lithium and Joris Merckx, president of Chemetall Surface Treatment, will continue in their current jobs, and will report to Zatta. “The Rockwood board of directors will initiate a search process to identify a permanent CEO, which will include

Bob Zatta and other candidates,” says a company official. Before Rockwood Zatta spent 12 years with the Campbell Soup Company, where he held various financial management positions, including his last position as vice president responsible for corporate development and strategic planning. Riordan has been senior vice president, law & administration of Rockwood since 2000. Before that, he was vice president, law & administration of Laporte (Rockwood’s predecessor) since 1992 and joined Laporte in 1989. Riordan worked for UOP from 1975 to 1989 where he held various positions, including chief litigation counsel. “Rockwood continues on a solid path for future growth in its core businesses,” said Zatta. “Having recently completed our acquisition of the 49% ownership interest in Talison Lithium, Rockwood is now the premier diversified provider of lithium products to our global customers.”

Skeleton appoints Younicos’ Jim McDougall as a non-executive director Skeleton Technologies Group, the European ultracapacitor developer, has appointed James McDougall as a non-executive director with a focus on global business development. McDougall is chief executive for Younicos, the German energy storage company. He joined the firm in April. Before that he was chief executive at ReVolt where he worked at commercializing a breakthrough zincair battery. “McDougall is a battery industry veteran and entrepreneur with experience in commercializing new technologies,” the

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firm said. “During the last 20 years his career focus has been developing and executing growth strategies for companies and their disruptive technologies in the global consumer electronics and enterprise and financial security network markets. Before that he worked at Solicore, a producer of thin, flexible, lithium polymer batteries featuring a proprietary solid polymer electrolyte. In his last assignment, as executive vice president of sales and business development, he led the company’s transition to commercialization by securing several global distribution and

purchase contracts. Before that, McDougall was a consultant to Dow Chemical for the spin out and formation of Aveso Displays, a pioneer in printed electronic displays. Subsequently, he led the business development efforts of Aveso Displays as vice president of global sales. Before he was director of marketing and licensing at Valence Technology, and responsible for corporate marketing and licensing of its proprietary lithium polymer battery and material technology. McDougall began his career at International Components Corporation,

a battery charger technology firm. At ICC, he held a variety of executive positions including managing director of the power supply division where he was responsible for worldwide sales, marketing and operations.

Batteries International • Summer 2014 • 15

PEOPLE NEWS

Ron Van Dell joins ViZn Energy Systems as chief executive ViZn Energy Systems, a large-scale energy storage firm, has appointed Ron Van Dell as its new president and chief executive officer. “With over 30 years of experience in both the international and US markets, Van Dell has led companies across the spectrum from start-ups to businesses that net billions in sales,” the firm said. “His expertise also covers a broad range of industries including semiconductors, power, communications, computing, industrial control, electrical distribution and clean tech. “With systems already in the field for testing, ViZn’s patented technology and

its zinc redox flow battery is positioned to break the cost/benefit threshold that is limiting widespread adoption of grid-scale energy storage.” As chief executive of SolarBridge Technologies, Van Dell headed the development and launch of a microinverter for AC Solar Modules. He also worked as chief executive at Primarion (sold to Infineon), chief executive at Legerity (spin off of Communication Division of AMD), and general manager for Dell Computer’s Dimension Line of Business. He held previous international management positions in the US and in Eu-

rope at Groupe Schneider, Square D Company and General Electric.

Ron Van Dell, new president and CEO, ViZn Energy Systems

Bradley Hansen appointed COO and president of ZBB Energy Corp ZBB Energy Corporation, a developer of renewable energy power platforms, announced in May that Brad Hansen has been appointed president and chief operating officer of the firm. He also joins the board of directors. Hansen replaces Charles Stankiewicz who was chief operating officer and a company director. Stankiewicz will assist in the transition of his COO duties to Hansen. Hansen was until December 2011 previously chief executive of Anhui Meineng Energy, a Chinese joint venture firm with ZBB, where he was in charge of Meineng’s organization and development. In 2010, Hansen founded PowerSav, a boutique private equity fund targeting China government policy supported markets. He remains a managing partner of PowerSav. Hansen has international renewable energy industry experience having held various executive positions

with Applied Materials, from 1989 to 2010. While at AMAT, Hansen led global sales and site operation organizations for its solar product line. Before that he was corporate vice president for new business and products. Hansen directed the acquisition and integration activities for AMAT’s strategic Applied Films Corporation acquisition. Hansen was issued inducement stock options to buy a total of 360,000 shares of company common stock and an award of inducement restricted stock units upon the achievement of certain performance

16 • Batteries International • Summer 2014

vesting conditions. Hansen will report to Eric Apfelbach, chief executive of ZBB. Hansen’s responsibilities include all manufacturing, R&D, engineering, human resources and sales and marketing. The finance and business development will report to Apfelbach. Hansen’s responsibilities also include the continued management of Meineng. This will bring the two companies together making more efficient use of resources at both companies.

Ioxus appoints senior sales ﬁgures Ioxus, the supercap manufacturer appointed Van Andrews as senior vice president of global sales and marketing in early July. Andrews joins Ioxus from Maxwell Technologies where he was responsible for the global sales of ultracapacitors as well as strategic marketing and communications. Andrews has previously held senior positions with US Robotics, Toshiba America Information Systems and Gateway Computers. He said he was looking forward to expand Ioxus’ sales in Asia and Europe. In April Ioxus also announced a further sales appointment with the recruitment of Wolfram Krueger as vice president of European sales. Krueger joined from Maxwell Technologies, where he was European director of sales and Marketing. Krueger has three decades of sales experience having previously held senior positions at Nesscap, Mitsumi Electronics, Rohm Semiconductor, Hitachi, Intel and Texas Instruments. “I am excited to start a new chapter in my professional career,” said Krueger. “Ioxus has superior technology and the strongest set of financial backers compared to any other company in the energy storage space.”

Quote of the summer When I started out with my first company, Zip2, I thought patents were a good thing and worked hard to obtain them. Later I realized that receiving a patent really just meant that you bought a lottery ticket to a lawsuit, I avoided them whenever possible. Technology leadership is not defined by patents — which history has repeatedly shown to be small protection indeed against a determined competitor — but rather by the ability of a company to attract and motivate the world’s most talented engineers. — Elon Musk, CEO, Tesla Motors

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Valve-regulated lead-acid (VRLA) batteries are known for their reliability and relative safety, and for being maintenance-free (sealed) and recyclable. They are the default for large “Backup Storage” systems. A new hybrid VRLA technology now stands also to become the default choice for “Active Storage” systems.

A hybridization of VRLA battery and ultracapacitor technology has created a device with breakthrough performance. UltraBattery® adds high charge acceptance and the ability to operate continuously in a Partial State of Charge (PSoC), delivering power handling beyond conventional VRLA batteries. UltraBattery® challenges the active storage capabilities of even the most advanced lithium chemistries, while retaining the beneﬁts of VRLA batteries: reliability, relative safety, sealed state and recyclability. Testing of the active storage performance of UltraBattery® by Sandia National Laboratories showed dramatically improved utility PSoC cycle-life of up to a factor of 10. Testing of its performance in hybrid electric vehicles by Advanced Lead Acid Battery Consortium achieved more than 100,000 miles on a single battery pack without signiﬁcant degradation.

UltraBattery® combines battery and ultracapacitor chemistry in a common electrolyte in a manner that creates extraordinary charge acceptance capabilities. 10-Second Pulse Power Capability (Small-Format 12V UltraBattery Module) Charge Acceptance UltraBattery® Charge E-RATE (Multiple of 1 hour Energy Rating) (WATTS)

Active storage is fundamental to initiatives involving energy efﬁciency and the integration of renewable energy, which underpin the global drive for greener energy use. Active storage can deliver grid ancillary services, mitigate variability in renewable energy generation, and increase the efﬁciency of fossil fuel–based generators in off-grid systems. Active storage for micro-hybrid and start–stop vehicles ehicles hi l h has similar i il needs needs, d req requiring iring i i the h management off variability in timeframes from sub-seconds to hours.

It’s all in the Chemistry

Conventional VRLA Charge

18 16 14 12 10 8 6 4 2 0 10

100

DOD (% C1)

The performance of traditional lead-acid batteries can degrade quickly and require frequent refresh cycles if operated continuously in a PSoC regime. UltraBattery® is resistant to the build-up of hard sulfation – the typical agent of degradation in VRLA batteries during PSoC use. Far less frequent refreshing is required, and longevity is greatly increased. Capacity over Time with PSoC Use UltraBattery® Capacity

Active storage systems utilize energy storage constantly, requiring batteries that can charge and discharge continuously.

Conventional VRLA

100

Over a lifetime of PSoC operation, UltraBattery technology can deliver solutions up to two-thirds cheaper per kWh than conventional VRLA batteries. Applied to renewable energy storage applications in a PSoC regime, it can outperform the efﬁciency of conventional VRLA batteries used in a top-of-charge regime for the same applications by up to 20%. UltraBattery® can also deliver both active and backup capabilities simultaneously, providing compelling economics supporting the needs of the active application while retaining at all times sufﬁcient backup capability to respond immediately to any energy reserve need.

0 1,100

15,000

Cycles within a 10% range of charge

Notwithstanding UltraBattery®’s exceptional active storage performance, its comparative safety and recyclability alone stand to tip the scales away from rival chemistries such as lithium. UltraBattery® is already on the market, with proven credentials in renewable power-smoothing, grid regulation and peak shaving.

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NEWS

JCI signs auto supply agreement with China’s SAIC Motor Corp in further boost to AGM battery sales Johnson Controls has signed a new long-term automotive battery supply agreement with SAIC Motor Corporation a further indication of Johnson Controls’ intention to expand further in China. Johnson will provide its absorbent glass mat batteries for SAIC Motor’s Start-Stop vehicles.

Luke Lu, vice president and general manager of Original Equipment China, Johnson Controls Power Solutions. “As the global leader in automotive batteries, we are well positioned to help the Chinese automotive industry grow by offering a spectrum of solutions to meet increas-

ingly strict fuel efficiency regulations.” Johnson has produced nearly 20 million AGM batteries since 2007. By 2020, the firm says 175 million vehicles worldwide will include start-stop technology. Already in Europe, more than half of new vehicles built feature Start-Stop, it

LG Chem plans China battery plant LG Chem has signed a preliminary agreement to build an electric-car battery factory in China by next year and says it plans to invest “hundreds of millions of dollars” in the plant by 2020, with an annual production capacity of batteries for more than 100,000 electric vehicles when completed by the end of 2015, the South Korean company said in a statement. LG Chem said it would set up a joint venture next month with two state-run companies — Nanjing Jijin Technology Incubation Special Park Construction Development and Nanjing New Industrial Investment

Group — to operate the plant. The Korean company said it would own half of the joint venture, while the other half would be unevenly divided between the two Chinese firms, which would also invest an unspecified amount in the project. LG Chem declined to unveil the total amount of investment by all parties. The company said it expects a total of Won1 trillion ($1 billion) in revenue from the plant for five years from 2016. The plant will be LG Chem’s third overseas battery plant. The company has a battery plant in Korea

EnerDel to supply battery packs for Oahu Transit Services EnerDel, a supplier of lithium-ion batteries, said midJune that it will furnish and deliver eight PP320-689-LP Vigor+ Low-Profile Energy Storage Systems to the City and County of Honolulu, for installation into OTS diesel-hybrid buses. An EnerDel demonstration pack has operated in regular passenger service for several months on the tropical island of Oahu. The additional eight packs are targeted for delivery

in Q3 this year and will initiate ESS upgrades for the OTS fleet, giving new life to the transit authority’s New Flyer 40 foot Low Floor Diesel (Cummins ISL) Allison H40 EP Hybrid coaches. EnerDel released the PP320-689LP Vigor+ in May 2014 for commercial use. The purpose-built Vigor+ offers Public Transit Authorities a cost effective direct replacement alternative to OEM solutions.

20 • Batteries International • Summer 2014

that can produce 200,000 units a year, and a plant in Michigan in the US. LG Chem also has a factory in Nanjing, making small batteries for smartphones and other mobile devices.

BYD win huge electric ﬂeet order BYD Company has received a record order for 2,000 long-range, batteryelectric transit buses and 1,000 long-range, pureelectric cars in a deal that was signed with the Mayor of Hangzhou, Hongming Zhang. It is one of the world’s largest all-electric fleets ever ordered.

Redﬂow supplies zinc bromine ﬂow batteries to SMS RedFlow has signed a supply agreement with Philippines based SMS Global Technologies that could lead to further orders for its zinc bromine flow batteries. An initial order has been placed for two batteries to enable SMS to develop a flow battery storage solution for off-grid telecommunication applications in the Philippines.

says. Johnson Controls is investing in AGM technology globally to increase production capacity for North America, Europe and China. Compared with a conventional combustion engine, Start-Stop can provide an estimated 5%-8% fuel savings but to successfully power additional starts and stops, the system requires a more robust battery such as an AGM battery. Johnson Controls entered the Chinese automotive supply market with batteries in 2005 and employs more than 26,000 people in China. Johnson Controls is building a new corporate headquarters in Shanghai. This is being carried out in conjunction with its customer, Globe Telecom. A field trial started in May.

Ambri gets ‘C’ round funding Ambri , a Massachusetts start-up company, said at the end of April it had raised a $35 million series ‘C’ round to fund the production of prototype batteries from an existing factory and finance construction of a commercial-scale plant. The company intends to test prototypes in the field this year and produce full-size batteries for paying customers by 2016. The company’s smallscale commercial prototypes, which are about a cubic metre in size, will be installed at a few locations, including a wind farm in Hawaii and a military base in Cape Cod powered partially by stored renewable energy.

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NEWS

Next gen lead acid batteries for ISS Hitachi Chemical said in April that is has developed next-generation lead acid battery technologies that improve capacity and durability for vehicles with idling stop-start systems (ISSs). Hitachi Chemical plans to begin selling products with increased capacity from autumn 2014 and products with increased durability from spring 2015 to automobile manufacturers. The Saitama Works of Shin-Kobe Electric Machinery a manufacturing subsidiary of Hitachi Chemical, has been proceeding to prepare a mass production system for these products. According to the firm the key points of the new bat-

teries are its “high capacity and high durability technology. By making the cell active material in electrodes porous and increasing the contact area with electrolyte, a 5% capacity-increase is achieved. This increases engine startup performance and is compatible with increased electricity load on the automobile. A special type of non-woven material with a conventional separator, suppresses the electrode degradation phenomenon (stratification) that occurs because of differences in the concentration of the electrolyte in the upper and lower portion of the electrodes,

achieving a 200% increase in battery durability. In April 2013, the Hitachi Chemical Group merged the R&D and sales departments of SKEM with Hitachi Chemical and, has been engaging in R&D utilizing rich material technologies and advanced evaluation technologies, and global marketing activities in the battery business. “To further increase our superiority in the automobile lead acid battery market, the Hitachi Chemical Group will accelerate its development of batteries leveraging organic chemical technology and provide excellent products that meet customer needs,” says the firm.

“The market for ISSs, which are used in many automobiles to improve fuel efficiency and reduce CO2 fleet output, has been expanding rapidly in Japan and other nations throughout the world,” said the firm. “Lead acid batteries for automobiles with ISSs are expected to continually increase capacity, durability and high-speed charge acceptance performance to further improve fuel efficiency. “From 2010, the Hitachi Chemical Group has been selling lead acid batteries for ISS automobiles, and these have been greatly accepted by customers.”

Corvus gets approval for marine Li-ion battery banks Corvus Energy of Canada said in June that it had received approval from three major classification societies — DNV GL, Lloyd’s Register, and American Bureau of Shipping (ABS) — for its lithium-ion polymer battery banks as used in several hybrid and allelectric ship propulsion projects. The battery banks have already been successfully employed in the conversions to the Scandlines ferries and Eidesvik’s Viking Ladyoffshore supply vessel, as well as having been specified for the new-build Norwegian electricallypowered ferry Folgefonn. The technology is intended to reduce or eliminate inefficient low-load engine operation, supply reserve power and cut emissions in harbour, but also to serve as a main propulsion power source. “To obtain the approvals, our system underwent a variety of tests by independent accredited laboratories to replicate the extreme environmental conditions

the system may encounter in a commercial marine application,” says a company spokesperson. Corvus says the system has been built to handle the extreme duty conditions encountered in a commercial marine engine room, and is up to 10 times more powerful than lead-acid batteries, and significantly more powerful than currently available lithium alternatives. The company says the system can operate from -40°C to +60°C, withstand shocks of 30G, and continuous vibration of 8G.

“Customers have been impressed by the robust quality exhibited by our product and the technical expertise of our engineers,” said Chris Kruger, vice president engineering, Corvus Energy. “DNV GL, Lloyd’s and ABS approval will provide industry-wide confidence in the next generation of batteries.” “Through the extensive testing and DNV Type Approval, the lithium ion-battery power system shows it is comprehensive and robust, and truly worthy to be the first one type approved by DNV GL,” said DNV

GL’s Nick Roper, manager of district Pacific, and maritime North America. “Lloyd’s Register is pleased to provide Type Approval for Corvus Energy’s Lithium polymer battery,” said Bud Streeter, vice president of Lloyd’s Register North America and marine manager for Canada. “As an unbiased, thirdparty organisation, we verify that Corvus Energy’s AT6500 module conforms to the producer’s specification, to national and international standards, and that an appropriate level of product safety is achieved.”

LG Chem to supply electric car batteries to SAIC, Qoros South Korea’s LG Chem has secured orders to supply electric vehicle batteries to China’s SAIC Motor Corp and Qoros, according to a Reuters report in June. LG Chem did not disclose details of the deals, but said the contracts would increase the total number of its Chinese

22 • Batteries International • Summer 2014

customers to four, which have ordered batteries for more than 100,000 EV vehicles and would lead to hundreds of millions of dollars in revenue once production begins. LG Chem, which has factories in the US and Korea, also plans to build a joint venture in China in the second half

of this year to produce EV batteries to cope with growing demand in the region. “We are in the final process of deciding our JV partner in China and once the decision is made, we plan to pick the site after discussions,” LG Chem said recently in a statement.

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NEWS

Report on battery technologies for automotives advances case for further EU exemption of lead based batteries The impact on the perforstrates the necessity of mainmance and cost of vehicles, taining the exemption for plus an effect on targets for lead-based batteries within fuel efficiency and reduced the EU End of Life Vehicle CO2 emissions, if estabDirective’s wider ban on lished battery applications lead in light-duty vehicles. were to be replaced with The EU’s legislative and regalternative technologies ulatory framework should would be huge. This is acguarantee a fair and technolcording to a major study, ogy-neutral competition beA Review of Battery Techtween battery technologies.” nologies for Automotive The study concludes that Applications, published by 12V lead-based batteries are Europe’s automotive and the only battery technology battery industries. tested for the mass market The International Lead that satisfies the technical Association has welcomed requirements of convena new study by Europe’s autional vehicles (including tomotive and battery indusstart-stop and basic microtry which concludes that hybrid vehicles) and that lead-based batteries will, by it is not possible to replace necessity, remain the most one battery technology by widespread energy storage another without impacting system in automotive applithe overall performance and cations for the foreseeable vehicle cost. future. It also confirmed that The study comes at a time lead-based batteries are eswhen concerned groups such sential in providing energy as the ILA and EUROBAT storage solutions, not just are working on extending for conventional, start-stop the exemption for lead-based and micro-hybrid vehicles, batteries within the EU End but also for plug-in hybrid of Life Vehicle Directive’s and full electric vehicles wider ban on lead in lightworking alongside other “In particular, this report demonstrates duty vehicles, due for review battery technologies. the necessity of maintaining the in 2015. The report also advocates The ILA’s managing direcexemption for lead-based batteries within that where substitution betor, Andy Bush, says: “We between battery technologies the EU End of Life Vehicle Directive’s lieve that the conclusions of is possible, this should be the study will considerably wider ban on lead in light-duty vehicles. left to the manufacturers strengthen the case for the of applications, so they can The EU’s legislative and regulatory continued use of lead-based choose the most suited batbatteries in automobiles as teries for their products. framework should guarantee a fair and a reliable, cost effective, safe, The EU’s legislative and technology-neutral competition between regulatory and fully recyclable energy framework battery technologies.” storage solution.” should also guarantee a “Regulatory decisions to fair and technology-neutral — Johann-Friedrich Dempwolff phase out established batcompetition between battery technologies would imtery technologies. Johann-Friedrich Dempwolff, EUpact negatively on overall vehicle perThe study used the input of EUformance and cost,” says a EUROBAT ROBAT chairman said: “Currently ROBAT, representing Europe’s auofficial. “The study reaches this conclu- all battery technologies have specific tomotive battery industry, the Eusion through a detailed analysis of the performance profiles that serve a well ropean Automobile Manufacturers technical requirements placed on the defined purpose in automotive appli- Association (ACEA), the automobile battery in three different classes of con- cations and continue to have an irre- manufacturers’ associations of Japan ventional, hybrid and electric vehicles, placeable role in reducing CO2 emis- (JAMA) and South Korea (KAMA), as together with an explanation of which sions from transport. well as contributions from the Inter“In particular, this report demon- national Lead Association. technologies are able to fulfil them

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Batteries International • Summer 2014 • 23

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NEWS

Axion Power receives $1.1m follow-on order for PowerCube storage systems Axion Power International, the developer of lead-carbon energy storage systems, has received a follow-on purchase order for four more PowerCube energy storage systems from its strategic partner, a NJ-based solar installer for commercial and residential markets. The PowerCubes will provide storage for energy created by a commercial solar panel system

and service the frequency regulation market on the PJM grid. The purchase order for around $1,100,000 includes batteries, racks, wiring, a data communication system and the electronics coordination needed to outfit and install the PowerCubes. Each of the PowerCubes will be tied to solar arrays that produce between 500

kW and 700 kW of power and the PowerCubes will each provide 500 kW (both 500 kW up and 500 kW down) for frequency regulation. Axion’s onsite 500kw PowerCube has been connected into the PJM grid utility network, the US’s largest power transmission organization serving more than 58 million people in all or parts of 13 states, for

more than 2-1/2 years. Set up as a demand response and frequency regulation asset, the company developed and tweaked a working model in a real world setting using the PowerCube’s ability to participate 24/7 (although Axion’s model shows the ideal return at less than this) in the PJM frequency regulation market, said Axion Power chairman Tom Granville.

ABB ﬂywheels to stabilize grid for Alaskan island ABB, the power technology group, has received an order to deliver two PowerStore units — using flywheel technology to store energy — as part of a microgrids solution to stabilize the power grid and increase renewable energy on Kodiak Island in Alaska. ABB’s Microgrids Business worked with Kodiak Electric Association to develop and deliver the microgrid solution. KEA, a

rural electric cooperative which generates and distributes electrical power in Kodiak, Alaska, uses hydro, wind, battery energy storage, and diesel generation sets to produce power for the island. The ABB PowerStore units will provide voltage and frequency support for a new crane to be installed at Kodiak Island’s port facility. They can also extend the life of the battery sys-

MESA-1 energy storage in Washington state advances Snohomish County Public Utility District in the US state of Washington announced at the end of April that Mitsubishi International Corporation will provide the first battery deployed in the MESA-1 energy storage project. The 1MW, 500 kWh battery storage system will be installed later this year. “The MESA-1 installation will be the first energy storage system built on the Modular Energy Storage Architecture (MESA), an innovative approach to energy storage based on open, non-proprietary industry standards,” said Mitsubishi. The battery modules contain battery cells manufac-

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tured by Lithium Energy Japan, a joint venture between GS Yuasa International and Mitsubishi Corporation. 1Energy Systems, located in nearby Seattle will supply advanced MESA-compliant system control software and integrate the complete energy storage system. The lithium-ion battery equipment will be installed into a 40-foot ISO shipping container. This modular system design allows for multiple containers to be combined into larger systems so customers can size energy storage systems for their specific needs without incurring the additional engineering costs of custom designed systems.

tems by up to six years, and provide renewables integration by helping to manage the intermittencies from

Babcock & Wilcox acquire MEGTEC Babcock & Wilcox announced on June 23 that its subsidiary, Babcock & Wilcox Power Generation Group, had completed the acquisition of MEGTEC, a USheadquartered industrial processes provider, based on an enterprise value of $155 million, subject to adjustments. MEGTEC will operate as a subsidiary of B&W PGG under the trade name of Babcock & Wilcox MEGTEC. Its management team will continue with the company, and the company will continue to be headquartered in De Pere, Wisconsin. B&W PGG president Randall Data said:“We expect a smooth transition and integration process with no business disruption. B&W MEGTEC’s customers will continue to receive the same outstanding level of service to which they’re accustomed.”

a 9MW wind farm on the island. Longer battery life will improve sustainability of KEA’s power system. B&W MEGTEC employs approximately 600 people in the US, Canada, France, Italy, Sweden, Germany, the UK, China, India and Australia. The company designs, engineers, manufactures and services air pollution control systems and coating and drying equipment for the industrial sector.

Nexeon completes commissioning of manufacturing facility For the record, Nexeon, a battery materials and licensing company developing silicon anodes for the next generation of lithium-ion battery completed in April the construction and commissioning of a process development and manufacturing facility at its headquarters in Oxfordshire, UK. Nexeon says the plant is capable of producing over 20 tonnes of product a year, and can handle a wide range of materials and reagents.

Batteries International • Summer 2014 • 25

NEWS

Corporate restructuring at Energizer Energizer Holdings, announced at the end of April that it planned to separate the company’s Household Products division (which includes its battery brands) and Personal Care divisions into two independent, publicly traded companies. “The separation is planned as a tax-free spin-off to the company’s shareholders and should be completed in the second half of the 2015 fiscal year. The separation could create two independent public companies with distinct brands, categories and corporate strategies,” says the firm.

“Household Products, with batteries and portable lighting products, is expected to generate strong margins and significant cashflows, The Household Products division reported annual revenue of approximately $1.9 billion in the trailing 12 month period ended March 31, 2014.” “Over the last three years, we have taken a number of important steps to enhance shareholder value, including executing a multi-year cost reduction plan, improving working capital, and initiating a dividend,” said Ward Klein, the chief executive.

“Separating the Household Products and Personal Care divisions is the next logical step to unlock greater value for Energizer shareholders. Importantly, as we move through the separation process, the company’s working capital and cost reduction efforts will continue without interruption, and we expect to achieve the full savings projected.” Patrick Mulcahy, chairman of the Energizer Holdings board, is set to become executive chairman of the board of the standalone Household Products, division. Alan Hoskins, chief executive of

Energizer Household Products, will become chief executive of standalone Household Products. The company said it plans to provide further details about the board and management teams of the separate companies at a later date. The company has retained Goldman, Sachs as financial adviser and Wachtell, Lipton, Rosen & Katz and Bryan Cave as legal counsel to advise on the separation process. The separation is subject to shareholder and regulatory approvals.

Dual lead-lithium battery research by Ford, Samsung Ford Motor Company and Samsung SDI, an affiliate of Samsung Group, announced in June the results of their research on different levels of hybrid technology that, they said, could one day be produced in high volume on non-hybrid vehicles for greater fuel savings. The result of a 10-year research effort, the dualbattery system combines a lithium-ion battery with a 12-volt lead-acid battery that could enable regenerative braking technology in non-hybrid vehicles for greater fuel savings. “We are currently expanding our auto start-stop technology across 70% of our lineup, and this dual-battery system has the potential to bring even more levels of hybridization to our vehicles for greater energy savings across the board,” said Ted Miller, senior manager, Energy Storage Strategy and Research, Ford Motor Company. “Although still in research, this type of battery could provide a near-term solution for greater reduction of carbon dioxide.” Ford and Samsung SDI also are researching a long-

er-term ultra-lightweight lithium-ion battery that they say could one day render traditional lead-acid batteries obsolete.. “Lithium-ion batteries are typically used in consumer electronics because they are lighter and more energydense than other types of batteries, which also make them ideal for the vehicle,” said Mike O’Sullivan, vice president, Automotive Battery Systems for Samsung SDI North America. “Battery technology is advancing rapidly and lithium-ion could one day completely replace traditional 12-volt lead-acid batteries, providing better fuel efficiency for drivers.”

Lithium-ion batteries currently used in Ford’s electrified vehicles are 25% to 30% smaller than previous hybrid batteries made of nickel-metal-hydride, and offer approximately three times the power per cell. “The ultra-lightweight battery concept offers a weight reduction of up to 40%, or 12 pounds (5kg),” says Ford. “Combining the battery with other weight reduction solutions, such as the Ford Lightweight Concept vehicle, could lead to additional savings in size and weight of the overall vehicle, as well as increased efficiencies and performance.” In 2014 the company says it invested $135 million in

design, engineering and production of key battery components, and doubled its battery testing capabilities. Ford accelerated its battery durability testing, with test batteries now accumulating the equivalent of 150,000 miles of use and 10 years’ life in roughly 10 months in a laboratory setting. Ford says it has directly supported several energy storage companies in California in their technology development through the United States Advanced Battery Consortium and it supports energy storage research at Lawrence Berkeley National Laboratory, University of California, Berkeley, and Stanford.

GM, University of Michigan extend research programme General Motors and the University of Michigan said in May they would extend their collaborative automotive research efforts until 2017. “Launched in 1998, Collaborative Research Laboratories at the University of Michigan have led to significant commercial and academic success

26 • Batteries International • Summer 2014

for students, the university and the automaker,” according to GM. “In 2011, it yielded a unique process to ultrasonically weld battery tabs together that played a role in enabling the Chevrolet Volt team to offer an eight-year, 100,000-mile warranty on its lithium-ion battery system.”

The new Automotive CRL creates an organizational umbrella structure and initially will focus on research into engine systems and advanced manufacturing. In addition, GM and the University of Michigan have an existing, separate CRL that concentrates on smart material developments.

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NEWS

Princeton and Aquion Energy to build largest ever AHI battery system Princeton Power Systems, the energy technology developer and Aquion Energy, a manufacturer of aqueous hybrid ion bat-

EaglePicher receives grant for sodium-beta battery for grid storage EaglePicher Technologies announced in mid-April that it will receive a $3 million award from the US’ Advanced Research Projects Agency-Energy to further develop their catalytic energy storage technology. EaglePicher will focus its research on improving scalability for its sodium-beta battery by developing an inexpensive stacked design to improve integration in renewable and grid storage applications. “The original ARPAE effort, ‘Planar Na-Beta Batteries for Renewable Integration and Grid Applications,’” successfully demonstrated the concept of using thin BASE (betaAl2O3 solid state electrolyte) for reduced cell impedance and increased discharge rates while operating at reduced temperatures,” says the firm. “Battery models and market studies conducted for the project have shown that the new concept should meet multiple needs of the grid storage market. This follow-on project leverages EaglePicher’s original research with new technology being developed by another ARPA-E awardee, Material Systems and Research Inc. “The advanced design will demonstrate the new modular, scalable concept at the end of the 18 month project in 450Whr cells.”

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tery systems for stationary energy storage applications, announced plans in June to build the largest aqueous hybrid ion battery to date. The companies will collaborate on a project to showcase the Princeton Power Systems DRI-10 in a fully functioning microgrid at Aquion’s Systems Integration Laboratory. The project, which will be commissioned at the laboratory this summer, will contain 14 of Aquion’s M-Line modules (270kWh nameplate) being charged and discharged by a DRI10 in both grid interactive and islanding modes. The system will run a variety of protocols emulating real world microgrid conditions. Princeton Power Systems’ UL1741 listed DRI10 features an E-quad power flow design combined with split-phase

electrical connections and islanding capability — making this inverter suitable for applications such as hybrid solar systems, wind with storage, electric vehicle charging and commercial backup. “The DRI-10 bidirectional 4-port inverter (2x DC and 2x AC) is a reliable, efficient, cost-effective and flexible solution for many advanced energy applications,” says Princeton Power. Aquion Energy’s M100 module is a 19.2 kilowatthour system composed of 12 Aquion S-Line battery stacks in a parallel configuration. The module comes equipped with an optional voltage, current and temperature sensing control board that can be integrated with standard power conditioning systems. “The M-Line modules deliver long cycle life, deep depth of discharge

and high efficiency, making it an ideal choice for stationary, long-duration, daily cycling applications including off-grid and microgrids, energy management and grid-scale services,” says Aquion. Darren Hammell, cofounder of Princeton Power says: “We are confident that the combination of our DRI-10 and Aquion’s AHI storage system will serve as a powerful platform to demonstrate a commercially available and robust microgrid solution.” Ted Wiley, vice president at Aquion Energy says: “We selected the DRI-10 because of its proven capability and functionality in renewable powered microgrids both on and off the grid. Aquion has several similar microgrid systems planned for deployment around the world in the coming quarters.”

GS Yuasa plans 1MW-output system backed by lithium ion batteries GS Yuasa Corporation plans to install a 1 MW output mega solar system in idle land within the premises of the Gunma Plant (Isesaki City, Gunma Prefecture), which is one of GS Yuasa’s production bases. Construction starts in July and the battery manufacturer hopes for it to start operations in January 2015. The plant will be backed up with a bank of lithium ion batteries. This will be its second mega solar system, the first was the Iwaki Yuasa Photovoltaic Power Plant in Iwaki City, Fukushima Prefecture, which started operations in June 2013. The new system will sell the electricity it generates to the Tokyo Electric Pow-

er Company, utilizing the Feed-in Tariff System for Renewable Energy. It will also act as an emergency power source supplying electricity to the plant during power outage. Total annual output of Iwaki Yuasa Photovoltaic Power Plant, which started operations in June 2013, exceeded the initial estimate of 1,100 MWh, “Along with contributing to the safety and security of local communities and solving power shortages through construction and operation of mega solar systems, GS Yuasa will improve the technological capability and implement new product development in the renewable energy related business such as pow-

er conditioners and high capacity lithium-ion batteries,” the firm said. “GS Yuasa Group will continue to promote the development and usage of power conditioners and storage batteries to contribute to society’s ability to flexibly respond to ever-changing power supply conditions. GS Yuasa Group has been a pioneer in the development of sophisticated power conditioners which change direct current from photovoltaic panels into alternating current at a voltage of the proper level and characteristics, smoothing the sinusoidal AC wave form, to enable load equipment to function properly.

Batteries International • Summer 2014 • 27

NEWS

NEC commissions 5.7MWh of UK grid energy storage installations, seeks adaptability for variations in location NEC Energy Solutions, a manufacturer of advanced energy storage systems, has completed commissioning of six new GSS (grid storage solutions) sites in the UK for Northern Powergrid. In total, the systems have nearly 2.9MW of power and 5.7MWh of energy storage capacity, and were installed in substations in both urban and rural locations as part of the Customer-Led Network Revolution. The CLNR is a threeyear smart grid project in the UK funded in part through the Office of the Gas and Electricity Markets’ (Ofgem) Low Carbon Networks Fund. The largest, a 2.5MW, 5MWh GSS in Darlington, is located in an urban industrial area, while one of the smallest, a 50kW GSS, is located in a residential area in Wooler, a small town in the northern part of England. “Part of the challenge of installing energy stor-

age in these areas was the wide diversity in the various sites,” said Ian Lloyd, CLNR technology manager at Northern Powergrid. “We needed battery systems that could fit into a range of electricity distribution substations, so it was important to have a very flexible battery design to accommodate our very different locations.” Energy storage is a key component of the CLNR

smart grid project, and will be used to help integrate more solar and wind energy into the UK’s electricity network, as well as supporting other low-carbon technologies. To fit the needs of the project at four of the six sites, NEC Energy Solutions supplied lithium-ion based grid battery systems packaged in a variety of enclosures including standard 40-foot containers and smaller cus-

tomized enclosures. The last two locations required energy storage systems installed directly into pre-existing buildings, and serve to demonstrate the flexibility of NEC Energy Solutions’ modular and scalable designs. NEC Energy Solutions, says it is an industry leader in advanced energy storage, with more than 110MW operating on the grid worldwide.

NEC closes A123 acquisition NEC Corporation announced in May that it had completed the acquisition of A123 Energy Solutions, the grid energy business of A123 Systems from China’s Wanxiang Group. A123 Energy Solutions will now operate as NEC Energy Solutions. As part of this acquisition, NECES and Wanxiang will create a joint venture to develop

the grid energy storage and commercial systems business in China. Moreover, NEC will seek to expand new global business through the creation of next generation energy solutions linked to Information Communication Technologies (ICT) and energy storage systems. NEC Energy Solutions will manufacture and continue the launch of

Nanophosphate ALM Series Lead Acid Replacement Batteries. These batteries deliver lighter weight, higher power and longer calendar and cycle life as compared with lead acid for a number of applications, including telecommunications, data centres, medical and UPS systems. The acquisition was for around $100 million.

Further grid testing with ﬁrst lithium-titanate battery Toshiba Corporation plans to provide a 2MW ESS (energy storage system) in September near Wolverhampton in the UK to support grid management. As part of this Toshiba will install a 1MWh SCiB battery in a primary substation battery which, it says, will be the country’s first lithium-titanate battery. Large-scale ESS are increasingly seen as a versatile solution in managing electricity supply. Installed in wind and photovoltaic generation systems, ESS can help to overcome intermittent output and frequency fluctuations, as well as performing peak power buffer-

ing, and when connected to the grid they can support grid stability and reinforcement. This role in grid management will be investigated in the UK, in the Grid Connected Energy Storage Research Demonstrator project. This is led by the University of Sheffield, funded by the Engineering and Physical Sciences Research Council (EPSRC), with support from both industrial and academic partners. The ESS will be connected to the 11kV grid at Western Power Distribution’s Willenhall primary substation in the West Midlands. When

28 • Batteries International • Summer 2014

the project starts operation this November, it will allow testing at realistic levels, and allow assessment of the technical and economic potential of ESS in the grid. “Toshiba’s SCiB is a highly innovative lithium-titanate based secondary battery,” says the firm. “It is distinguished by its long-life and excellent performance: fast charging and discharging in a wide range of temperature conditions; capability to withstand over 10,000 charge-discharge cycles; and high level reliability and operational safety, particularly in terms of low risk of fire, a danger associ-

ated with other lithium-ion batteries. “ESS based on Toshiba’s SCiB provide an excellent solution where high performance and long life are required, for example in the provision of efficient and effective frequency regulation.” Toshiba is promoting battery-based ESS globally as a support for stable power networks, supplying several projects in Japan and around the world, and has already received orders for commercial systems in Italy and Japan, where it has supplied batteries for a 40MW ESS — among the world’s largest.

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NEWS

Shot in the arm for lithium as GM invests $449 million for next generation electric cars General Motors is to invest $449 million to upgrade manufacturing processes at its Detroit-Hamtramck Assembly and Brownstown Battery Assembly plants. The investment is the largest to date at both facilities and includes $384 million at Detroit-Hamtramck for new body shop tooling, equipment, and additional plant upgrades to build the next generation Chevrolet Volt and two future products. This brings GM’s total investment at DetroitHamtramck to more than $1 billion over the last five years. GM’s $65 million investment at its Brownstown plant will support the next generation of lithium-ion battery production and future battery systems. Since 2009, GM has announced more than $5.4 billion in US facility investment for vehicle technologies. This includes more

than $2.8 billion invested in Michigan-based facilities alone. The Detroit-Hamtramck Assembly Plant is the world’s only automotive plant that mass-produces extended-range electric vehicles — including the Volt, Cadillac ELR and Opel Ampera — for markets in 33 countries. Detroit-Hamtramck also builds the Chevrolet Malibu and Impala sedans and is home to a 264,000-squarefoot photovoltaic solar array that can generate up to

“Priced at $19,995 with full US incentives, the Spark EV is one of the most efﬁcient — and affordable — allelectric vehicles available”

516 kilowatts of electricity, or enough to charge 150 electric vehicles per day. Brownstown Battery Assembly’s 479,000-squarefoot, landfill-free facility south of Detroit produces the lithium-ion battery packs for GM’s extended-range electric vehicles. It started mass production in October 2010 and is the first high-volume manufacturing site in the US operated by a major automaker for automotive lithium-ion battery production, according to a GM spokesperson. The site was made possible with the help of American Recovery and Reinvestment Act funding through the US Department of Energy. Separately, General Motors announced later on that it planned to bring all its electric vehicle battery building capabilities inhouse with production of battery systems for the 2015 Chevrolet Spark EV at its

Electrovaya provides battery packs to Dongfeng Motors, breaks into mining industry Electrovaya announced in April that it has delivered its next generation of prototype battery packs to Dongfeng Motors in China. DFM, the Chinese car manufacturer is working on a major electric vehicle program, which includes two electric vehicle platforms. Electrovaya is supplying its Lithium Ion SuperPolymer 2.0 battery, which consists of high energy density cells, and battery management system along with sub-assemblies of mechanical, thermal, electrical and electronics. Due to improvements in the cell manufacturing

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process, this battery has about 20% increased capacity and performance over Electrovaya’s previous DFM prototypes. The battery uses Electrovaya’s proprietary unique non-toxic manufacturing process. “DFM is one of China’s largest automakers.” says Joseph Chao, Electrovaya’s consultant for the Chinese electric vehicle market. “This is a critical contract for both groups. DFM presently manufacturers over 3.5 million vehicles in China and its electric vehicle programme has the potential to become one of the major players in the Chi-

nese and global markets.” Separately, Electrovaya announced in April that it had received its first energy storage purchase order using its lithium ion superpolymer batteries from the mining industry. This is for C$750,000 ($690,000) and the storage system will be delivered this year. Mining projects around the world are usually located in remote sites and commonly use diesel generators as the power source. These generators often consume large amounts of fuel, and in some cases fuel costs can be as high as 30% of the operating cost of a mine.

battery assembly plant in Brownstown, Michigan. “Using our in-house engineering and manufacturing expertise enabled us to deliver a battery system that is more efficient and lighter than the 2014 Spark EV without sacrificing range,” said Larry Nitz, executive director of GM global transmission and electrification engineering. “Our successful working relationship with LG Chem has allowed us to deliver a new battery system for the Spark EV that helps us to better leverage our economies of scale.” A newly designed battery system features an overall storage capacity of 19kWh and uses 192 lithium ion cells. The battery system weight of 474lb is 86 pounds lighter than the system in the 2014 Spark EV. The Spark EV battery is built on a dedicated production line at Brownstown, which also manufactures complete battery packs for the Chevrolet Volt, Opel Ampera and Cadillac ELR. Changes in battery design will not affect the Spark’s MPGe, or gasoline equivalent, performance compared to the 2014 model. Range will remain at an EPA-rated 82 miles and MPGe will remain at 119. “Priced at $19,995 with full federal incentives, the Spark EV is one of the most efficient — and affordable — all-electric vehicles available. Currently on sale in California and Oregon, the 2015 Spark EV features segment-leading technology including Siri Eyes Free, 4G LTE and DC Fast Charging,” says a GM spokesperson.

Batteries International • Summer 2014 • 29

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NEWS

New EFRC funding awards announced US energy secretary Ernest Moniz announced on June 18 the award of $100 million for Energy Frontier Research Centers to accelerate what it called “the scientific breakthroughs needed to build the 21st-century energy economy”. The awards are the second round of funding for EFRCs and the research supported by this initiative will enable fundamental advances in energy production, storage, and use. “Today, we are mobilizing some of our most talented scientists to join forces and pursue the discoveries and breakthroughs that will lay the foundation for our nation’s energy future,” Moniz said. “The funding we’re an-

nouncing today will help fuel scientific and technological innovation.” The 32 projects receiving funding were competitively selected from more than 200 proposals. Ten of these projects are new while the rest received renewed funding based on their achievements to date and the quality of their proposals for future research. Twenty-three of the projects receiving funding are headed by universities, eight are led by the Energy Department’s National Laboratories and one project is run by a non-profit organization. Awards range from $2 million to $4 million per year per centre for up to four fiscal years, subject to a progress

review in year two. The DOE plans to open the EFRC programme to new applications every two years. Since their establishment, the EFRCs have produced 5,400 peer-reviewed scientific publications and hundreds of inventions at various stages of the patent process. EFRC research has also benefited a number of large and small firms, including start-up companies. The centres selected for the second round of funding will help lay the scientific groundwork for fundamental advances in solar energy, electrical energy storage, carbon capture and sequestration, materials and chemistry by design, biosciences, and extreme environments.

Lead Institution

State

EFRC Name

EFRC Director

EFRC Objective

California Institute of Technology

Light-Material Interactions in Energy Conversion (LMI)

Atwater, Harry

Tailor the morphology, complex dielectric structure, and electronic properties of matter so as to sculpt the ﬂow of sunlight and heat, enabling light conversion to electrical energy with unprecedented efﬁciency.

University of California, Riverside

Spins and Heat in Nanoscale Electronic Systems (SHINES)

Shi, Jing

Explore the interplay of spin, charge, and heat to control the transport of spin and energy to achieve much higher energy efﬁciencies in nanoscale electronic devices.

National Renewable Energy Laboratory

Center for Next Generation of Materials by Design: Incorporating Metastability (CNGMD)

Tumas, William

Transform the design and synthesis of materials for solar energy conversion and solid state lighting using high throughput computation and data mining.

Argonne National Laboratory

Center for Electrochemical Energy Science (CEES-II)

Fenter, Paul

Understand electrochemically-driven reactivity in electriﬁed oxide materials, ﬁlms and interfaces using lithium ion battery chemistry.

Northwestern University

Center for Bio-Inspired Energy Science (CBES)

Stupp, Samuel

Develop artiﬁcial materials, inspired by biological systems, that can change the way we convert and use energy.

Northwestern University

Argonne-Northwestern Solar Energy Research (ANSER) Center

Wasielewski, Michael

Revolutionize our understanding of the molecules, materials, and physical phenomena necessary to create dramatically more efﬁcient technologies for solar fuels and electricity production.

Massachusetts Institute of Technology

Center for Excitonics (CE)

Baldo, Marc

Develop new materials and structures that use excitons to increase the efﬁciency of solar photovolatic cells and high brightness solid state lighting devices.

Massachusetts Institute of Technology

Solid-State Solar-Thermal Energy Conversion Center (S3TEC)

Chen, Gang

Design materials for efﬁcient direct heat-to electricity energy conversion technologies.

University of Maryland, College Park

Nanostructures for Electrical Energy Storage (NEES II)

Rubloff, Gary

Provide the scientiﬁc insights and design principles needed to realize a new generation of powerful and long lasting batteries based on nanostructures.

Los Alamos National Laboratory

Center for Advanced Solar Photophysics (CASP)

Klimov, Victor

Harness the unique properties of quantum-conﬁned semiconductors to realize the next generation of low-cost, high-efﬁciency solar photoconversion systems.

SUNY Binghamton

NorthEast Center for Chemical Energy Storage (NECCES)

Whittingham, M. Stanley

Understand the transformations that occur in an electrode composite structure throughout the lifetime of the functioning battery in order to achieve close to theoretical capacities in intercalation systems and enable new battery chemistries.

SUNY Stony Brook

Center for Mesoscale Transport Properties (m2M)

Takeuchi, Esther

Understand ion and electron transport and electron transfer properties over multiple length scales and across interfaces to enable the design of higher performing, longer life, and safer energy storage systems.

Center for the Computational Design of Functional Layered Materials (CDFLM)

Perdew, John

Employ computation and theory to design modiﬁed layered materials with desired functionalities, to grow and experimentally characterize them, and to test their efﬁcacy for clean-energy applications.

Center for Lignocellulose Structure and Formation (CLSF)

Cosgrove, Daniel

Develop a detailed nano- to meso-scale understanding of plant cell wall structure and its mechanism of assembly to provide a basis for improved methods of converting biomass into fuels.

Fluid Interface Reactions, Structures and Transport (FIRST) Center

Wesolowski, David

Develop fundamental understanding and validated, predictive models of the unique nanoscale environment at ﬂuid-solid interfaces that will enable transformative advances in electrical energy storage and electrocatalysis.

Energy Dissipation to Defect Evolution (EDDE) Center for Frontiers of Subsurface Energy

Zhang, Yanwen

Develop a fundamental understanding of energy dissipation mechanisms to control defect evolution in structural alloys in a radiation environment.

Security (CFSES)

Lake, Larry

Understand and control emergent behavior arising from coupled physics and chemistry in heterogeneous geomaterials, particularly during the time and length scales for geologic carbon dioxide storage.

Center for Molecular Electrocatalysis (CME)

Bullock, R. Morris

Develop a fundamental understanding of proton transfer reactions that will lead to transformational changes in our ability to design molecular electrocatalysts for interconversion of electricity and fuels.

Oak Ridge National Laboratory

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Batteries International • Summer 2014 • 31

NEWS IN BRIEF Bitrode forms partnership in Indonesia Bitrode has formed a strategic partnership with Jakartabased Inter Pasific Cemerlang to provide testing services that can bring advanced energy storage solutions to Indonesian-based businesses. “Bitrode recognizes the importance of providing local sales and service to existing and potential customers,” said John Grimm, director of sales and marketing for Bitrode. “IPC’s technical sales and service experts are equipped to handle the growing energy storage industry in Indonesia.” Since 1989 IPC has been supplying custom measuring and testing instruments to the electrical power and related industries.

BYD reveals ‘forklift battery for life’

PASTED PLATE THICKNESS MEASUREMENT

BYD Europe unveiled at CeMAT, the huge international logistics fair in May, a range of forklifts featuring a battery technology that it claims “means customers need never buy a new battery again”. BYD’s new battery uses lithium iron phosphate and requires less time and energy to charge than traditional leadacid batteries and offers an extended total battery life that, BYD claims for the first time ever, the truck battery needs never be replaced. Typical charging time for a lithium iron phosphate battery is just one to two hours. But a 10 minute top up time extends working up to 45 minutes. BYD says the annual operating and battery amortization cost savings when using its battery in a single-shift, five-day-a–week lift truck operation could exceed €1,500 ($1,950) a year.

ZPower secures $10 million more

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32 • Batteries International • Summer 2014

ZPower announced at the end of May it had raised $10 million in additional funding from existing investors, bringing the company’s total to $110 million committed by investors. The funds will be used to accelerate the adoption of ZPower silver-zinc rechargeable batteries, used by leading hearing aid manufacturers. The batteries were recently launched by Starkey Hearing Technologies for use in the VFusion Rechargeable Battery System. “ZPower’s technology has given me a new lease on life,” said Howard Schultz, lead investor and hearing aid wearer. “When I place my hearing aids in the charger each night and put them on in the morning, I’m confident the batteries will last all day. No longer do I have to worry about carrying spare batteries and having to replace them at inopportune times. With ZPower batteries I can now charge my hearing aids just like my mobile phone.” ZPower is hoping to expand into markets beyond audiology. Longer lasting microbatteries are crucial for the new wave of portable electronics and wearable computers. “Our silver-zinc technology has a significant energy density advantage over lithium-ion microbatteries,” says Ross Dueber, ZPower chief executive. ZPower batteries are the first new rechargeable battery technology for portable electronics to be launched since lithium-ion was introduced in the 1990s. The US company is financed entirely by private investors.

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NEWS IN BRIEF Renault signs MOU with LG Chem for EV batteries Car maker Renault has signed a memorandum of understanding in May with LG Chem to jointly develop high density batteries that will power its next-generation zero emission cars. The French automaker, which controls Renault-Nissan Alliance and South Korea’s Renault Samsung Motors, said the agreement lays the foundation for its next-generation EVs to be powered by lithium ion batteries made by LG Chem, already an established player in the vehicle power storage sector. “The batteries will give cars longer endurance and reduce range concerns that have restricted growth of the global EV market,” says Renault. Renault currently markets the Twizy, Zoe, Fluence ZE and Kangoo Van ZE electric cars. Counting Nissan’s Leaf, the world’s fourth-largest automotive alliance had sold 100,000 EV as of July 2013. In South Korea, Renault Samsung sells the SM3 Z.E. that is based on the Fluence.

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B3CG Interconnect join forces with EnerDel for Quebec school bus program EnerDel, the lithium-ion battery firm in April agreed with B3CG Interconnect a manufacturer of electromechanical components to develop and manufacture traction batteries for Lion Bus, Canadian school bus producer. The electric power-train will be equipped with some 100kWh of lithium-ion batteries which should give it an expected range of more than 50 miles, sufficient to travel a typical school bus route. The main battery components, including EnerDel’s newest high-density Moxie+ modules and Secure+ Battery Management System, will be built by EnerDel. The final battery and wiring harness assembly will be completed by B3CG in Quebec. The Quebec provincial government recently awarded Lion Bus a project to develop an all-electric school bus. This project, is part of the Transportation Electrification Strategy promoted by the Canadian government, which aims to introduce 10,000 all-electric vehicles on Quebec roads by 2017.

Audi and partner FAW cooperate on plug-in hybrid for China Audi and its Chinese joint-venture partner FAW are to launch a plug-in hybrid car for the Chinese market. The Audi A6 e-tron will be based on the long-wheelbase version of the Audi A6, which is already produced in China, and will be specially developed for the most important market of the German premium manufacturer. The full-size sedan with a 50-kilometer range when operating solely under battery power is to be produced within the joint venture by FAW-Volkswagen in Changchun in northern China. Zhang Pijie, president of FAW-Volkswagen said: “Audi and FAW have been cooperating closely for more than 25 years. Together, we have built up the premium segment in China. “Now we are cooperating on the next generation of automobiles. The two types of drive system of the plugin hybrid technology offer customers emission-free driving with electric drive and unlimited range with the additional combustion engine.”

Batteries International • Summer 2014 • 33

NEWS IN BRIEF Montana Tech eyes European electric car battery plant Austrian investor Michael Tojner’s Montana Tech Components group announced in April that it had plans to set up a major plant in Europe to make batteries for electric cars and has launched talks with German carmakers. “Should the plan bear fruit, it could lead to a bourse listing for its Germany-based Varta car battery business,” a spokesperson said. The company already works with Volkswagen on developing batteries for electric cars. The group said it could start serial production of electric car batteries by 2017.

LiFeBATT new supplier for American Mine Research LiFeBATT, a supplier of lithiumion battery cells headquartered is to supply American Mine Research, with 20Ahr cells based on LiFePO4 to power the underground system that provides communication and location information to miners. The initial contract with AMR calls for 4000 cells per mine. The LiFeBATT cells underwent nearly a full year of testing before they could be incorporated into AMR’s system. The cells are labelled to certify that they have met various international safety standards and further certified under the UN 3840 designation as safe to ship by air cargo. The product carries the highest ‘C’ – Rated Safe Lithium-ion cell designation on the market today.

LG Chem signs Ube Maxell licence agreement LG Chem has signed a patent licence agreement with Ube Maxell for separator film technology owned by LG Chem. Ube Maxell is a joint venture between Ube Industries and Hitachi Maxell in the field of coated separator films for lithium-ion batteries. Ube Maxell acquires the patent use rights from LG Chem for ceramic coating of separator substrates, a key component of lithium-ion batteries. Ube Maxell was formed in February 2011 by Ube Industries (51%) and Hitachi Maxell (49%). The company engages in the manufacturing and sales of high-performance coated separator films for lithium-ion batteries used in

34 • Batteries International • Summer 2014

hybrid and electric vehicles and industrial applications. The patent granted to Ube Maxell is for LG Chem’s safety reinforced separator technology, which uses a ceramic coating on separator substrates to enhance the thermal deformation resistance and mechanical strength of separators. This in turn prevents shortcircuits inside lithium-ion batteries to ensure lithium-ion battery safety. Details of the agreement between LG Chem and Ube Maxell have not been disclosed.

Sinopoly in strategic agreement with Smith Electric Sinopoly Battery, a manufacturer of lithium-ion batteries and electric vehicles has entered into a collective agreement with Smith Electric Vehicles, a all-electric vehicle manufacturer. This involves a strategic cooperation with SEV and an exclusive battery supply contract and an electric vehicle component supply OEM memorandum of understanding to strengthen the long-term development of the group in the international market. As one of the largest commercial allelectric vehicle manufacturers in the world, SEV has a history of over 80 years. It has invested approximately $100 million in the research and development of EV projects since 2009. The all-electric vehicles manufactured by SEV have been used commercially by its customers for many years. SEV has production and R&D bases in the UK and the US and customers inAmerica, Europe and Asia. SEV, intends to be listed on the New York Stock Exchange or NASDAQ Stock Market. Sinopoly will be a strategic shareholder to support the listing of SEV. This includes a financial arrangement — a conditional subscription of Series AA convertible promissory notes, Series ‘E’ preferred stock and common stockof post-listing of SEV in the amounts of $2 million, $10 million and $30 million, respectively. Upon completion of the collective agreement with SEV, Sinopoly will become an exclusive power battery supplier, an EV parts and components preferred supplier of SEV and will be the single largest shareholder of SEV. The power batteries used for all-EVs produced by SEV in the future will be procured exclusively by Sinopoly and SEV will also use Sinopoly’s electric vehicle manufacturing plant in Hang-

zhou as its preferred OEM supplier for their EV frame as well as other parts and components.

Kandi Technologies signs supply contract with Lishen Battery Kandi Technologies Group announced at the end of April that Zhejiang Kandi Vehicles, its wholly-owned subsidiary in China, had signed a supply contract with Lishen Battery System, China’s largest producer of rechargeable lithium-ion batteries, for a one-year supply, a minimum of 25,000 cases, of 80V/70AH lithium-ion batteries starting in May 2014. The contract is valued roughly at Rmb360 million ($58.5 million) when the purchase orders have been fulfilled.

California close to approving $415 million for home energy storage for renewables California’s Self-Generation Incentive Program was about to be re-authorized by state governor Jerry Brown as Batteries International went to press. It will continue to provide $83 million per year (through to 2019) for behindthe-meter generation technologies including wind, fuel cells and energy storage. The SGIP rebate is increasingly being used for energy storage applications. It has a mandate to add 200MW of energy storage behind the meter by 2020. In 2012, the SGIP incentive devoted to energy storage was for just two systems totalling 2MW.

Polypore in long-term lithium separator supply agreement with Panasonic Polypore International announced in May that its Celgard subsidiary and Panasonic Automotive and Industrial Systems Division had entered into a long-term supply agreement under which Panasonic will buy Celgard brand separators to be used in its large-format electric drive vehicle lithium-ion batteries. This agreement includes guaranteed purchase and supply volume requirements and a five-year term. “After working closely together with Panasonic for many years, we are pleased to formalize our partnership with them. This provides certainty of

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NEWS IN BRIEF supply to meet our customers’ needs in this growing application space,” says Robert Toth, chief executive of Polypore.

Rockwood takes 49% stake in Talison Lithium Rockwood Holdings completed the acquisition of the ownership interest to create a joint venture with Sichuan Tianqi Lithium Industries at the end of May. It gives Rockwood a 49% ownership interest in Talison Lithium. Rockwood says it funded the purchase price of $475 million from cash on hand. “Completing the acquisition of 49% in Talison is a significant strategic step as we move forward to position Rockwood Lithium as the premier provider of lithium products to our global customers. We are now uniquely situated with significant and diverse lithium resources in multiple continents, including South America, North America and now Australia. This will assure our customers that we have the ability to meet their fast-growing needs,” said Seifi Ghasemi, chief executive of Rockwood. Talison mines and processes lithium-bearing mineral spodumene at its operations in Western Australia and is an important figure in the Chinese lithium concentrates market. Talison produces two categories of lithium concentrates: technical-grade lithium concentrates and a high-yielding chemical-grade lithium concentrate which is used to produce lithium chemicals which form the basis for manufacture of, among other applications, lithium-ion batteries for laptop computers, mobile phones, electric bicycles and electric vehicles. Sichuan Tianqi Lithium Industries is China’s leading lithium company, with a market cap of some $1.8bn and is 36% owned by Chengdu Tianqi Industry Group. Tianqi is the world’s largest lithium producer. It owns 51% of Talison and is also the sole distributor of technical-grade lithium concentrate for Talison in China.

MHI to sell lithium-ion rechargeable battery business Mitsubishi Heavy Industries closed an agreement in April with Delta Electronics, a leading manufacturer of electronic devices in Taiwan, under which MHI will sell Delta its

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business assets, including machinery, in lithium-ion rechargeable batteries. As a result MHI will shift its management resources into operations in energy storage system products employing lithium-ion rechargeable batteries. Delta Electronics is the core enterprise of the Taiwan-based Delta Group. The company undertakes operations encompassing a diverse lineup of electronic products including power and thermal management solutions, and as an enterprise of global scale it has approximately 200 facilities worldwide including production, sales and R&D functions. “Leveraging the new agreement, going forward MHI and Delta Electronics also plan to join forces in pursuing further development of the lithium-ion rechargeable battery business, including ESS products,” said a MHI statement. “At the same time, MHI will continue to work toward the realization of an ever more energy-efficient, lowcarbon society through expanded adoption of stationary large-capacity ESS’s, electric buses and the like.”

A123 Systems acquires technology from Leyden Energy A123 Systems, the lithium-ion battery manufacturer, has acquired intellectual property and technical staff from Leyden Energy. These include lithium titanate and nonflammable electrolyte developments were acquired for an undisclosed amount. As part of this, key technical staff of Leyden Energy are to join A123 Systems’ R&D organization. Leyden is the recent recipient of funding from United States Advanced Battery Consortium (USABC), an organization that includes Chrysler, Ford and General Motors. “Under that program, Leyden achieved outstanding progress on development of its technology for micro-hybrid applications in the automotive market,” according to an official statement. “In particular, the inherent lithium titanate properties of long cycle life and exceptional power capability were extended to operate over a substantially wider temperature range. The acquisition of Leyden’s technology in this field complements the lithium iron phosphate materials portfolio that A123 has already commercialized.

Manz secures li-ion battery machinery deal Manz, the German battery machine manufacturer, received in June its largest single order of li-ion battery machinery comprising a fully integrated production line, according to a press report.

Proterra raises $40 million Battery-electric bus manufacturer Proterra has raised more than $30 million in additional funding for its technology. Kleiner Perkins and GM Ventures led the financing with further funding from other existing investors. Another $10 million in funding is to close shortly bringing the total for the financing to $40 million. Edison Energy and Constellation Technology Ventures, the venture capital arm of Exelon, have re-invested. Tao Invest, Vision Ridge Partners and Hennessey Capital were set, in June, to join with Mitsui and 88 Green Ventures. Michael Smith, Constellation vice president and head of Constellation Technology Ventures, will join Proterra’s Board.

Areva JV targets renewable market Areva has formed a joint venture with Smart Energies subsidiary Ceth2 and the French Environment and Energy Management Agency (Ademe) to manufacture proton exchange membrane electrolysers to produce hydrogen from water and electricity. The electrolysers may also supply service hydrogen for fuel cell vehicles or supply natural gas networks. Areva, Ceth2 and Ademe will hold equal interests in the joint venture, which will be based in France and have an engineering and production site.

UniEnergy Technologies announces availability of Uni. System vanadium ﬂow battery UniEnergy Technologies, a manufacturer of large-scale energy storage systems using vanadium flow batteries has announced the commercial availability of the Uni.System grid-scale energy storage system. The system is modular, factory-inte-

Batteries International • Summer 2014 • 35

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NEWS IN BRIEF grated (including power conversion), and, says the company, “plug and play,” consisting of five 20 foot standard containers requiring a concrete pad and interconnection that provide 500kW of power for four hours, with power up to 600kW and energy up to 2.2MWh. “Utilizing a new generation of vanadium electrolyte initially developed at Pacific Northwest National Laboratory supported by the US Department of Energy’s Grid Storage Program, with double the energy density and much broader operating temperature range, the Uni.System is a breakthrough product,” said UET president & CEO Gary Yang. “In addition to all the advantages of traditional vanadium redox flow batteries, such as superior safety, unlimited cycle life, long duration, and full use of the battery from 0% to 100% state of charge, the Uni.System is fully containerized including for the first time at grid-scale integrated electrolyte tanks, field-proven large-scale stacks, and optimized controls and power electronics.”

MonBat to sell recycling plant Bulgarian car battery producer MonBat plans to sell its battery recycling plant in Serbia, according to remarks made by the chairman of the company’s board of directors Atanas at a shareholding meeting at the end of June.

Alstom-Saft agree draft contract with EDF The consortium formed by AlstomSaft consortium in 2013 to bid for work with the EDF group to supply an initial energy storage system using a container of lithium-ion batteries, has agreed a draft contract. Alstom’s MaxSine eStorage solution, connected to Saft’s Intensium Max 20M storage system, will be installed on EDF R&D’s experimental so-called ‘Concept Grid’, dedicated to the development of grids and smart electrical systems. Located on the EDF site of Les Renardières south of Paris. Tihs is the first installation of its kind in France. The storage system and the power converter will be delivered in late 2014. The battery storage system will provide frequency regulation whereby it can either release energy into the grid,

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The National Recycling Rate Study, commissioned by Battery Council International, has been completed for 2009–2013 and concluded that the recycling rate of lead available from lead-acid batteries in the US is 99%. When compared to the National Recycling Rate Study performed for 2004–2008, the 2009–2013 study saw a three percentage point increase in the overall recycling rate. This positive change will prove beneficial for leadacid batteries as global energy storage continues to become an increasingly prevalent topic. “This study shows that lead-acid batteries can pass the unwritten specifications of an increasingly environmentally conscious culture,” says Mark Thorsby, executive vice-president of

Battery Council International. “As the most highly recyclable lead commodity in the world, lead-acid batteries continue to solidify their place in the global energy storage marketplace” The national recycling rate (R) was calculated by dividing the total pounds of battery lead recycled (LR) by the total pounds of battery lead available for recycling (LA) in the US.

or store it in a few hundred milliseconds, thus controlling the frequency of the network. The experiments by EDF R&D will evaluate the ability of such a system to regulate the frequency, and particularly the adjustment potential of the primary reserve. As part of this contract, Alstom and Saft provide the complete 1 MW/30min energy storage and conversion system. Saft will supply its Intensium Max 20 foot lithium-ion battery container, while Alstom will install its MaxSine eStorage solution. “The battery energy storage system is part of the ‘Nouvelle France Industrielle’ project, a scheme launched by the French government in 2013,” says Patrick Plas, senior vice-president, Smart Grid & HVDC at Alstom Grid. Alstom and Saft have already collaborated on the smart grid demonstration project Nice Grid (in Nice,

France), installing in late 2013, a 1MW battery energy storage system to address the risk of grid instability in the event of a massive influx of intermittent solar energy.

R = (LR/LA) x 100 New battery shipments, new battery exports, imports and exports of vehicles/products containing battery and imports and exports of scrap and used batteries were all included in calculating the total pounds of lead available for recycling.

Finland plans renewable energy storage Finland has launched a €7 million ($9 million) project to develop storage systems for wind and solar energy. The Neo-Carbon Energy scheme is a partnership by VTT Technical Research Centre of Finland, Lappeenranta University of Technology and the Finland Futures Research Centre at the University of Turku. Neo-Carbon Energy is being backed by the Finnish Funding Agency for Innovation, which has granted funding of €5 million for 2014-2016.

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Remote microgrids continue to be the most numerous category of microgrid projects According to a recent report from Navigant Research, the worldwide market value for energy storage for microgrids will grow from $662 million annually in 2014 to nearly $4.2 billion in 2024. “Rapid expansion of the microgrid market over the next 10 years will drive increased demand for energy storage associated with these systems,” says Anissa Dehamna, senior research analyst with Navigant Research. “Energy storage systems can also allow participation in deregulated ancillary service markets, further improving the economics of the overall system.” The strongest market for energy storage for microgrids, according to the report, Energy Storage for Microgrids, will be the grid-tied customer-owned microgrid segment in North America, which is supported by robust growth in microgrids and favorable regulatory developments. Technology adoption in this region is balanced between all technologies, with an emphasis on lithium ion batteries, which are anticipated to represent up to 40% market share in North America by 2024. Although most microgrids are technically retrofit projects, microgrids have begun to move into the mainstream, according to other reports by Navigant Research. Around the world, new vendors continue to enter this space with new projects and approaches. These systems, which can operate in isolation from the wider power grid, are well suited for remote communities in the developing world, where regional and national power grids are often weak or non-existent.

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Navigant says there are now more than 388 remote microgrid projects in operation, under development, or proposed worldwide — almost as many as all other segments combined. In terms of capacity, however, the market is now led by the community/utility segment, with a total capacity of 1,111MW as of the first quarter of 2014. -“While remote microgrids are proliferating rapidly, they tend to be quite small, often below 100 kilowatts in size,” says Peter Asmus, principal research analyst with Navigant Research. “Community and utility microgrids, which include projects being developed by the grid operators themselves, can be as large as 60MW or even 100MW per system.” Nearly half of the microgrid projects included in the report are located in North America, which remains the

global leader in terms of total microgrid capacity. The report shows a much more robust microgrid market than in 2009, when Navigant Research first began following the sector. North America will likely continue to be the dominant region through 2020. “The pace of microgrid deployments has accelerated rapidly around the world, in a variety of application segments,” says Asmus. “In the US the increasing frequency of severe weather is prompting utilities to reconsider their opposition to customer-owned microgrids that can disconnect from the larger grid and continue to function, allowing critical mission functions to stay up and running.” The Asia Pacific region, however, will likely emerge as the global leader for microgrid deployments by 2030 or 2035, due to the immense need for power

for growing populations not served by traditional grid infrastructure. Nearly 2,800MW of microgrid capacity will be installed in Asia Pacific from 2014 to 2020, the report estimates. Navigant Research says it has identified 4,393MW of total microgrid capacity throughout the world, up from 4,148MW in the previous update, released in the fourth quarter of 2013. The report, Microgrid Deployment Tracker 2Q14, tracks data on known gridtied and remote microgrid projects in the proposal, planning, and deployed stages, including details on the various technologies employed in individual projects. The other report also covers various microgrid segments: commercial/industrial, community/utility, institutional/campus, military, remote systems, and direct current systems.

Supercaps to win against Li-ion batteries A new report by researchers IDTechEx warns that the rapid rate of improvement in supercapacitors could pose an eventual threat to future lithium ion battery sales. The report Electrochemical Double Layer Capacitors: Supercapacitors 2014-2024 predicts the global market to be some $6.5 billion by 2024. Nanotune Technologies’ CEO Kuang Tsei Huang has demonstrated supercapacitors with 35Wh/kg, saying that 500Wh/kg may be achievable, this is two to four times the energy density of the best Li-ion batteries,. Yunasko, the supercap developer, and others have demonstrated 35Wh/kg, with intermediate products, matching lead-acid and NiCd batteries. Maxwell Technologies expects tripling current

energy density with pure supercapacitors. Graphene supercapacitor developers are targeting 200Wh/kg. Peter Harrop, chairman of IDTechEx says: “supercapacitors need not match lithiumion battery energy density to replace much of that battery market. “They have replaced maybe 1% of that market already with only one hundredth of the energy density because they last longer than, for example, the bus that they help power. They are safer and have 10 times the power density. “They have replaced Liion batteries in most Chinese buses, despite greater upfront price. Supercapacitor sales are under 3% of lithium-ion battery sales today, partly replacing them and

partly doing things batteries can never do. “Supercapacitor sales will be over 10% of Li-ion sales in 10 years as they grab more Li-ion business despite such batteries improving by a factor of two in energy density. For that, production supercapacitors or supercabatteries (notably lithium-ion capacitors) must reach around 40 Wh/kg with all other parameters acceptable, possibly even conceding some power density and life but being greener. “If that happens, few will dispute that in the next decade at around 100 Wh/kg with acceptable other parameters, supercapacitors or supercabatteries could grab 50% of the lithium-ion market reaching tens of billions of dollars in yearly sales.”

Batteries International • Summer 2014 • 39

NEWS

Ioxus opens second plant and gets series ‘C’ funding Ioxus, the ultracapacitor firm, has opened a second manufacturing facility in Oneonta, New York. The 22,000 sq ft plant, located close to Ioxus’ headquarters, will create increased capacity for both electrode manufacturing and module assembly to meet rapidly increasing demands for Ioxus products worldwide. “Opening our second plant in Oneonta is the culmination of a busy four months for the company. So far in 2014 we announced FlexGen Power and The Long Island Rail Road as new customers, launched the iMOD X-Series™ and received $21 million in series ‘C’ funding,” said Mark McGough, CEO, Ioxus. “We are seeing Ioxus ultracaps designed into a broad array of products including buses, trains, cars, heavy machinery, solar panels and other industrial equipment. The expansion of our manufacturing facilities allows us to meet the supply requirements of major new customers in these applications. Worldwide, Ioxus now utilizes over 100,000 square feet of manufacturing capability in four locations.” Ioxus’ new site will increase the number of US employees to 150. Separately, Ioxus announced in April the completion of its series ‘C’ funding with receipt of $21 million from investors. IFC, an arm of the World Bank Group, and the largest global development institution focused exclusively on the private sector, together with the Westly Group, a venture capital firm based in Menlo Park, California, led the financing. The company says that it plans to use the funds to expand its operation in Asia,

with a focus on China. “One of IFC’s strategic priorities is to address climate change and promote the use and manufacturing of environmental technolo-

gies in emerging markets,” said Nikunj Jinsi, global head of venture capital, IFC. “Ioxus’ ultracapacitor technology, team and business model is a strong

fit with our aim to support companies poised to have an impact on real time issues such as pollution prevention in developing countries.”

Nano-sized ruthenium oxide, graphene foam could be key to boost supercap performance say University of California researchers Researchers at the University of California, Riverside — writing in an article for the press (mostly reproduced here) — say they have developed a novel nanometer scale ruthenium oxide anchored nanocarbon graphene foam architecture that improves the performance of supercapacitors. The researchers found that supercapacitors based on transition metal oxide modified nanocarbon graphene foam electrode could work safely in aqueous electrolyte and deliver two times more energy and power compared to supercapacitors available today. The foam electrode was successfully cycled over 8,000 times with no fading in performance. The findings were outlined in a paper, Hydrous Ruthenium Oxide Nanoparticles Anchored to Graphene and Carbon Nanotube Hybrid Foam for Supercapacitors, in the journal Nature Scientific Reports. The paper was written by graduate student Wei Wang; Cengiz Ozkan, a mechanical engineering professor at University of California Riverside’s Bourns College of Engineering; Mihrimah Ozkan, an electrical engineering professor; Francisco Zaera, a chemistry professor; Ilkeun Lee, a

40 • Batteries International • Summer 2014

researcher in Zaera’s lab; and graduate students including Shirui Guo, Kazi Ahmed and Zachary Favors. “Besides high energy and power density, the designed graphene foam electrode system also demonstrates a facile and scalable binder-free technique for preparing high energy supercapacitor electrodes,” Wang said. “These promising properties mean that this design could be ideal for future energy storage applications.” A team led by Cengiz Ozkan and Mihri Ozkan are working to develop and commercialize nanostructured materials for high energy density supercapacitors. “High capacitance, or the ability to store an electrical charge, is critical to achieve higher energy density. Meanwhile, to achieve a higher power

density it is critical to have a large electrochemically accessible surface area, high electrical conductivity, short ion diffusion pathways and excellent interfacial integrity. Nanostructured active materials provide a mean to these ends,” says a university spokesperson. “Supercapacitors have garnered substantial attention in recent years because of their ultra-high charge and discharge rate, excellent stability, long cycle life and very high power density. These characteristics are desirable for many applications including electric vehicles and portable electronics. However, supercapacitors may only serve as standalone power sources in systems that require power delivery for less than 10 seconds because of their relatively low specific energy.”

Mihrimah Ozkan, Cengiz Ozkan and Zachary Favors

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PRODUCT NEWS

HighWater gets patent for GO battery HighWater Innovations’ low aspect ratio battery design has been granted a US patent. The GO Battery — Geometrically Optimized — advanced lead acid battery design, features a compact three inch diameter, lowaspect ratio, with a cooling core down the centre. The design allows extremely low internal cell resistance and significantly more power efficiency. “Prototypes are nearing

1000W/kg,” says the inventor, George Brilmyer, “and a clear development path is in place for upwards of 1500W/kg. At these levels, the design will be competitive with current nickel and lithium chemistries at a substantially lower cost. In addition, the battery is over 98% recyclable making it the greenest technology available!” Brilmyer, says “We are extremely pleased about the patent being granted

as we believe it validates our work. Our goal is to make hybrid electric vehicles more affordable and therefore more plentiful. This cannot help make a positive impact on our environment. “Meaningful growth in the hybrid vehicle market is in reducing the cost of the vehicle’s battery pack to make it more affordable and offer a pay-back on the battery based on actual fuel savings. At prices of $3.50

for gasoline in US, the battery is expected to payback its cost in a little over two years — well within the life of the vehicle. No other battery technology can do this.” HighWater’s business model is to develop technology and then license or sell the technology or join with a partner for further development. GO Battery Inventor George Brilmyer, below.

Saft launches Seanergy range of lithium ion modules for marine use Saft, the European advanced technology battery manufacturer, has launched its new Seanergy range of lithium-ion battery modules developed to offer the advantages of Liion Super-Iron Phosphate (SLFP) chemistry in a integrated solution designed specifically for civil marine propulsion installations. The new range includes a variety of energy and power modules that offer the flexibility and adaptability to create, cost-effective battery systems to power full-electric and hybrid electric applications for a variety of vessels including work boats, ferries, offshore support, cruise-liners and cargo ships. “The key advantages of Saft SLFP cell technology for marine applications are its increased safety, its light weight and compact size, high efficiency, long calendar and cycling life, fast-charging capability and high power output — both continuous and in pulses and the ability to deliver high voltages — up to 1000V,” says a Saft spokesperson.

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Maxwell expands ultracapacitor range Maxwell Technologies, a developer and manufacturer of ultracapacitors, has increased its product range with the latest ultracapacitor cell. The new 2.85V, 3400 farad ultracapacitor cell increases the range of available specific power and stored energy in the industry-standard 60 mm cylindrical ‘K2’ form factor. Maxwell Technologies also introduces the DuraBlue Shock and

Vibration Technology, the newest innovation in ultracapacitor reliability and performance. “Products with DuraBlue technology are tested to some of the most demanding environmental requirements for transportation, increasing vibrational resistance by some three times and shock immunity by four times when compared with ultracapacitor-based competitive offerings,” says

a company official, and, “making it the world’s most ruggedized cell. “Our DuraBlue Advanced Shock and Vibration Technology combines its patented dry electrode formation and manufacturing process with a proprietary cell structure design to meet the demanding shock and vibration requirements of the growing number of power-hungry applications in global transportation markets.”

Batteries International • Summer 2014 • 41

PRODUCT NEWS

Yuasa releases high performance new lithium ion batteries for industrial applications Yuasa has introduced new lithium ion battery modules for industrial applications that incorporate multiple LIM series battery cells along with a battery monitoring unit (ACS) and a temperature sensor. The LIM series are aimed at a wide range of applications including energy storage, traction motors and regenerative energy recycling. The ACS monitoring unit measures temperature and voltage of the cells and outputs a signal to an external device enabling users to monitor the condition of the battery accurately. The ACS also performs cell balancing and can detect abnormal operating conditions such as high or low voltage. “The LIM series lithium ion batteries offer a number of enhanced features compared with previous generation products,” says the firm. “These include lithium transition metal oxide as the positive active material and carbon as the negative active material, increased energy density in comparison with leadacid, nickel-cadmium and nickel-hydrogen batteries, completely sealed structure, outstanding cyclic characteristics significantly above lead-acid performance, high charging efficiency to save energy, no memory effect eliminating the need for complete discharge or for spare batteries and better rapid charge/discharge (high power) characteristics.” The industrial batteries are designed to work with a battery management system (LIBM) which features a LCD touch panel showing battery voltage, current, temperature and cell voltages, SOC (state-of-charge) and any abnormalities in

real time. In the event of an abnormal condition occurring, the LIBM cuts off current automatically to protect the battery. Li-ion cells deliver a significant increase in power density compared to conventional lead-acid, nickel cadmium and nickel metal hydride batteries enabling the same power to be provided from smaller installations. At 25°C, the new Yuasa LIM50E cells provide a typical 1hr rate capacity of 50Ah from a cell measuring 171mm x 44mm x 113mm and weighing just 1.7kg.

Nominal voltage is 3.7V with operating voltage range from 2.75V to 4.1V. The fully-sealed stainless steel and PET insulated casing ensures no gas is released under normal operation and the LIM50E cells can be installed and used in any orientation. Other specifications include a maximum continuous discharge current of 300A, up to 2000 cycles to 80% of initial capacity, impedance of 0.55mohm (measured at 1kHz) and operating temperature range of -25°C to +60°C

for storage, charge and discharge conditions. Terminal types are M8 male thread with torque from 9Nm to 13Nm. Design life is 10 years and applications include UPS and standby power in industrial, telecommunications and computer datacentres, next-generation transportation systems that rely on regeneration systems and large energy storage systems for solar and wind power installations long with other large portable power applications, says the company.

Texas Instruments introduces multi-cell battery monitors for 12V to 48V industrial lithium ion batteries Texas Instruments has introduced scalable, multicell battery monitors that it says improves battery pack safety and reduces design time of 12V to 48V lithium-ion and lithium-iron phosphate batteries used in e-bikes, power tools and energy storage systems. “The bq76920, bq76930 and bq76940 circuits efficiently protect and control 3- to 15-cell batteries when charging or operating in harsh environment conditions,” says Texas. The advanced monitors incorporate cell-balancing drivers, regulated output

supplies and other unique features to reduce external component count and provide heightened protection against overvoltage, undervoltage and overcurrent conditions. Simplifying battery design and optimizing board space, the bq76920 supports 3- to 5-series cells or typical 18-V packs; the bq76930 manages up to 10-series cells or 36-V packs; and bq76940 monitors up to 15 cells or typical 48-V batteries. The bq76920, bq76930 and bq76940 multi-cell battery monitors are avail-

able in volume production through TI and its worldwide network of authorized distributors. The bq76920 comes in a 20-pin, 4.4-mm by 6.5mm TSSOP package with a suggested resale price of $1.50 each in 1,000-unit quantities; the bq76930 comes in a 30-pin, 4.4-mm by 7.8mm TSSOP package with a suggested resale price of $2.75 each in 1,000-unit quantities; and the bq76940 comes in a 44-pin, 4.4-mm by 11.3mm TSSOP package with a suggested resale price of $3.95 each in 1,000-unit quantities.

GS Yuasa offers VRLA battery for Toyota hybrids GS Yuasa Battery said it would launch its ECO.R Hybrid Series lead-acid auxiliary battery for hybrid vehicles manufactured by Toyota Motor Corporation on July 1. Hybrid vehicles are installed with two types of batteries, one is a driving battery and the other is an auxiliary battery. A nickel metal hydride battery or lithium

42 • Batteries International • Summer 2014

ion battery is used as the main driving battery and a lead acid battery is used as auxiliary. A lead acid auxiliary battery is important in that it is used when starting up the hybrid system in such vehicles. Toyota’s hybrid models – Prius, Aqua and Corolla — use GS Yuasa’s lead acid auxiliary battery. These

auxiliary batteries need to be changed regularly, similar to that of lead acid batteries for ordinary vehicles. “The ECO.R Hybrid Series lead acid auxiliary battery would allow users to once again choose GS Yuasa’s lead-acid batteries. As a differentiator,” says Yuasa, “this is a valve regulated lead-acid storage battery.”

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PRODUCT NEWS

Ioxus releases new iMOD X series Ioxus, the ultracapacitor firm, has launched its iMOD X-series, a new series of module systems for a common, single-piece extruded housing for application across all of its axial ultracapacitors. The iMOD X-Series allows for every cell to be in thermal contact with the outside of the housing, therefore allowing for even heating and cooling, as well as a reduced heat generation. “The iMOD X-Series simplifies system design and installation for the end-users of multiple applications including hybrid buses, rail services, automotive systems, wind turbine pitch control, and backup power/UPS,” says Ioxus. “By doing so, the iMOD X-Series product line reduces the effort required to design module-to-module termination and monitoring connections, as well as simplifies the mounting arrangements.” The firm says that dvanced features of the iMOD X-Series include: • End-to-end cell laser welding. This reduces the number of bus bars, which in turn lowers cost and module equivalent series resistance while increasing system performance and power delivery capability. • Voltage balancing. The iMOD X-series offers true voltage balancing to extend the life of each cell, unlike other ultra-

capacitor manufacturers that offer basic voltage clamping. • Front facing terminals. This allows for the use of simple bus bars that clean up system layout and eliminates cables that crisscross in the system, enabling easy, safe maintenance and installation. • Structural thermal bridges. This maximizes and balances thermal transfer from the cells to the housing while adding mechanical structure and robustness. • Customizable end plates. This allows for virtually any mounting configu-

ration with easy installation and maintenance, most notably standard rack mountable double modules versus the standard single module multi-surface mounts. • Simple sealing: iMOD XSeries requires only two seal points compared to competitors’ five for a product of equal size/rating. According to Ioxus customer Dynex Semiconductor, the company selected the iMOD X-Series product for its compact construction and the inherently lower mounting costs for long strings of capacitors. “Having little prior expe-

rience with ultracapacitor suppliers and the products available, we conducted head-to-head testing between the Ioxus 3000 Farad cells and those from other suppliers,” says Bill McGhie, power assembly control systems senior manager, Dynex Semiconductor. “Following significant levels of long-term cycling performance testing, Ioxus ultracapacitors demonstrated the lowest drift in ESR and capacitance compared to the competition. As a result, Dynex has been able to reduce the complete system footprint by 50% by choosing Ioxus over other available products.”

EnerSys adds 34R TPPL battery To Odyssey Performance series EnerSys has expanded its Odyssey Performance Series battery product offering to include the Group 34R battery, suitable for consumer passenger and commercial vans, custom and classic cars and SUVs. The Odyssey Performance Series 34R-790 battery features a reversed terminal layout, but includes all of the same specifications as its counterpart, the Odyssey Performance Series 34-790. Delivering more overall power and longer service life than conventional batteries, the Odyssey Performance Series 34R-790 battery features 792 cold cranking

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amps and 114 reserve capacity minutes. Engineered with TPPL (thin plate pure lead) technology and an AGM (absorbed glass mat) construction, Odyssey Performance Series batteries provide rugged construction for high reliability and performance, according to EnerSys. “A key benefit of Odyssey Performance Series batteries is that they can be installed in almost any position. The 34R-790 provides yet another option for mounting flexibility thanks to its reverse terminal layout,” says Dave McMullen, director of commercial marketing for

specialty and UPS markets at EnerSys. The Odyssey Performance Series 34R-790 battery features a three- to 10-year service life and two-year storage life at 77°F/25°C, It is vibration-resistant, classified as “non-spillable” by the US Department of Transportation and includes a limited four-year full replacement warranty. The Odyssey Performance Series 34R-790 battery corresponds to Battery Council International Group 34R, and also comes standard with a height adapter to fit BCI Group 24F and Group 27F applications.

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COVER STORY: THE EUROPEAN GRID COMES OF AGE

Turning theory into reality. That’s the next step for Europe where future grid developments have been characterized by energy storage pilots rather than bankable investments. But, as Sara Verbruggen reports, the technology’s full commercial potential is starting to appear.

Large scale energy storage moves to the fore in Europe as momentum for change gathers

natching defeat from the jaws of victory. That was the way one energy commentator described moves by the German parliament in June to cut subsidies on renewable energy tariffs. Yet, just a month before, headlines across Europe blazoned the news that renewable energy had — for a brief afternoon in May — provided threequarters of Germany’s electrical supply. The push-pull in Germany’s approach to balancing the introduction of PV and wind power into the grid and its cost is just part of a wider debate that is running across Europe. It’s now less about integrating re-

newables into the grid — May’s record levels in Germany show that this can be achieved — the focus is now shifting to its cost and energy storage on an industrial scale. The transition to a smarter, more flexible, grid, increasingly dominated by wind and solar generation, is a balancing act, it requires scaling back of existing generation capacity, as more renewables are added. And this is where energy storage — at least in theory — should bridge the gap. But as with the German government’s desire to cut subsidies — and so reduce the price of electricity to its citizens — energy storage has to

Greensmith has now qualiﬁed 12 battery types to integrate with its software platform which span different lithium batteries, including those from Samsung SDI, as well as alternative chemistries like zinc bromide ﬂow and aqueous ion 46 • Batteries International • Summer 2014

be commercially viable if it’s to move from theory to fact. Putting huge amounts of energy into expensive industrial-scale batteries (that aren’t 100% efficient and lose energy between charging and discharging) has to be made cost effective. According to the UK’s Department of Energy and Climate Change there are over 250 energy storage projects in operation in Europe, with nearly €1 billion ($136 nillion) of EU funding, and more to be approved shortly. Battery banks are cropping up like mushrooms on all parts of the high, medium and low voltage networks. But, in most cases, storage is being used to tackle one specific issue or problem on the grid. In Italy for example, where Terna is procuring 75MW of batteries, the transmission system operator (TSO) is investing in the technology to address the most immediate challenges, identified in separate grid defence and development plans presented to the regulator.

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COVER STORY: THE EUROPEAN GRID COMES OF AGE In Germany, the state-funded bank, KfW, has been running a subsidy scheme since 2013 to incentivize new solar PV installations and also storage, at the domestic and small-scale commercial level. Other countries, such as the UK and Spain, are also commissioning storage pilots on the grid. The size may not be huge — the UK has just 12MW of energy storage projects of at least 1MW in size — that are either operational or are in planning.

Drivers in Europe Olivier Vallée from Paris-headquartered cleantech analyst Natureo Finance, which has been tracking over 120 grid-scale energy storage projects — 500KWh or larger — worldwide, says that in Europe, renewable energy integration has been the main driver. In the US it’s another story — its older, less well interconnected grid has meant that frequency regulation has been the focus. More recently, in Europe there is a shift to frequency regulation, while the US is increasingly focused on renewables integration, according to Vallée. Storage investments will need to do different things and have several income streams if these assets are to be commercially viable without subsidy. In Europe, most demonstrators and pilots have focused on testing the various functions of grid-integrated batteries. One example is a 1MW lithium ion battery that has been connected to the low and medium voltage grid in the city of Dietikon in Switzerland since March 2012. The plant, operated by Swiss utility EKZ, has been designed to carry out frequency regulation, peak shaving, voltage regulation and uninterruptible power supply.

Commerciality concerns Energy storage projects that aim from the outset to demonstrate real commercial business cases are fewer in number. However, this is changing. US-headquartered independent power producer (IPP) AES Corporation plans to build a 100MW lithium ion battery plant in Northern Ireland, where the company already operates power stations. The Kilroot storage facility will be used to integrate more wind into the local grid, reducing the need to curtail this form of green energy so the amount of traditional, dispatchable power reserves usually needed to com-

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pensate for the spiky unpredictable flows of wind-generated power can be gradually cut back. Both the north and the south of Ireland plan to have 40% of the island’s electricity consumption met by renewables by 2020, which means that by the end of the decade up to 3.3GW of additional wind capacity will be installed. Today the percentage is already high compared to many grids in Europe

Companies such as Younicos and Greensmith are challenging the traditional utility approach to storage, which has tended to view the technology as a sticking plaster on the network

RISING STARS OF STORAGE

If emerging industries have rising stars, then in the grid-scale energy storage industry, these are software start-ups Younicos, based in Berlin, and Maryland-headquartered Greensmith. These companies are often described as battery-agnostic, in the sense that their business depends on their energy management system software platforms being compatible with different types of chemistries. As an example of an integrator, Younicos’ technology occupies the point between the direct current source — the batteries — and the grid, which is alternative current. The software ensures that the batteries do what they should be doing at any given time while optimizing their performance. Companies such as Younicos and Greensmith are challenging the traditional utility approach to storage, which has tended to view the technology as a sticking plaster on the network. “Younicos software is the best in the market, it knows how

Samsung’s cells work, how to get the best from each one in the system, in accordance with what the system is programmed to do, bridging the energy storage system and the grid itself,” says Frank Baumann, Samsung SDI Europe’s sales director for energy storage. In addition to lithium ion Younicos uses two other main chemistries, vanadium redox flow and sodium sulphide, though in future alternative storage technologies are not ruled out as the market becomes more established. Greensmith has now qualified 12 battery types to integrate with its software platform which span different lithium batteries, including those from Samsung SDI, as well as alternative chemistries like zinc bromide flow and aqueous ion. According to John Jung, chief executive of Greensmith, the company makes regular site visits to the factories of its battery suppliers to carry out checks on cells as well as battery management systems as part of the company’s rigorous qualification process.

Batteries International • Summer 2014 • 47

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COVER STORY: THE EUROPEAN GRID COMES OF AGE and grid operators Eirgrid and System Operator Northern Ireland (SONI) are forced to address challenges that larger systems have yet to encounter. AES’ investment shows that in certain cases large-scale storage on the grid does not need to be subsidized. The IPP already has 100MW of batteries connected to the grid in West Virginia and Ohio for the TSO PJM Interconnection, which act as efficient alternatives to peaking plants providing frequency regulation, an ancillary service in the wholesale power market.

market trial is unique as it will be the first, globally, to test what value can actually be achieved on a commercial basis and this could be key to market design changes,” says Jones. These services will include load shifting and frequency regulation. The batteries will also stabilize the grid by providing more flexibility for renewa-

bles. The location of the system should also yield savings of £6 million (€7.5 million) by deferring capital investment required for more traditional network reinforcements that involve digging and laying new cables over many miles and new transformers. The system could achieve a return on investment within seven years.

The value of storage In Northern Ireland AES’ Kilroot project is coinciding with changes to the grid and grid codes, where new renewable energy capacity will have to provide frequency regulation services, so AES could potentially supply this service to wind power generators in future. Andrew Jones, managing director at S&C Electric Europe, believes there will be a growth in the number of companies that set up IPP arrangements for storage and some of the first companies that will deploy the technology will be renewables developers. Because of network unbundling that came with the privatization of Europe’s electricity markets in the late 1990s, distribution and generation are separate and current rules prevent network operators from owning storage, which can be both distribution or generation assets. In the UK, for instance, historically storage was deemed to compete with generation so it is generally classed as such an asset. In the case of a 6MW (10MWh) storage project in the UK, which S&C Electric Europe is building for the distribution system operator (DSO) UK Power Networks, at a primary substation in Leighton Buzzard on the outskirts of London, the plant has to sell energy into the market for the investment to generate revenues. This requires a supply licence, so Smartest Energy, which is the UK’s leading buyer of energy produced by independent and renewable energy generators, is the licensed supplier.

Engineers installing lithium ion batteries in a 5MW (5MWh) energy storage system in Schwerin for German electricity producer Wemag, which Younicos is supplying as a turnkey installation. Credit: Younicos

The same installation for Wemag during construction. The project has been supported with €1.3 million from the Federal Ministry for the Environment. Credit: Younicos

Identifying revenue streams To justify £13.2 million (€16.5 million) in funding from Ofgem, under the Low Carbon Network Fund (LCNF), the partners have identified several revenue streams for the battery array in Leighton Buzzard. “Right now, this

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Trying to predict the fortunes of an emerging industry is a fool’s game. But what is becoming clear is that the highest rewards may be reserved for those with their eye on global opportunities in grid storage Batteries International • Summer 2014 • 49

COVER STORY: THE EUROPEAN GRID COMES OF AGE

LEAD ACID TECHNOLOGY FOR RENEWABLES INTEGRATION

Globally, the renewable energy industry is recognizing that grid integration as one of the main constraints on the continued growth of wind and solar PV energy in the long term. The lead acid battery industry is helping to address this challenge, while opening up new markets for the technology. One recent example is GNB Industrial Power, a subsidiary of Exide Technologies, which has been working with German solar developer Belectric on an energy storage system for integrating renewables into the grid. The energy storage system, with a capacity of nearly 2MWh, is being trialled in Alt Daber in Brandenburg. The project is an example of a customerfocused application for energy storage, according to Martin Sinz, director of product management, advanced applications and renewable energy markets at GNB Industrial Power. The company developed

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the battery to meet Belectric’s requirements, to achieve a long service life, low cycle costs and high performance. The battery uses a new type of charging and reactivation process that can increase the life of lead-acid batteries in stationary applications. This has been achieved by reﬁning the electrodes, says Sinz who adds that the battery’s performance is not down to the addition of carbon. The storage system, which Belectric refers to as an energy buffer unit, has been installed by an existing solar power plant in Alt Daber will supply about 550 homes with electricity overnight.

The energy buffer unit could be used as part of hybrid power plants as well as for integration of renewables into the regulated energy market to meet the same requirements as conventional power plants currently do as the batteries can handle higher variations in load. As well as having an eye on providing grid services with the energy buffer unit, Belectric is targeting hybrid power plants, where solar panels are combined with a battery storage system and a diesel-, gas- or hydro-powered unit. Ecoult’s, an advanced lead acid battery technology, has been gathering data as part of a demonstration project for the Public Service Company of New Mexico to smooth solar into the grid. The system consists of a 0.5MW smoothing battery using the UltraBattery and a 0.25MW (0.99 MWh) peak shifting battery using other advanced lead acid batteries, with both types of cells made by Ecoult’s parent company East Penn Manufacturing. The project shows how energy shifting and smoothing on the grid can alter the proﬁle of grid-scale renewables. UltraBattery smoothing was applied to the output of a 500kW solar PV array, where tests had measured ramp rates of 136kW a second as solar energy was lost to cloud cover. In the US, in Vermont, Enersys has been running a demonstrator of its battery storage system aimed at showing utilities that large lead acid battery storage installations are stable, safe and reliable. The OptiGrid can be used for a range of applications, including renewables integration, peak shaving, time shifting and arbitrage. The storage unit is connected to a factory belonging to Dynapower, which makes inverters and is a partner of Enersys. The valve regulated lead acid battery bank provides power for the facility in times of high demand so that Dynapower does not have to shut down production or pay high charges for peak time electricity consumption.

Batteries International • Summer 2014 • 51

COVER STORY: THE EUROPEAN GRID COMES OF AGE “We don’t want to only provide energy storage but provide the intelligence needed to manage these technologies, to optimize their functioning within the regulatory framework” “However, the challenge is we have a free market and storage is at the mercy of the market in terms of how profitable it can be, whereas government or municipal-owned utilities are finding it easier to install storage as they see the whole benefit and not the broken value chain as we are dealing with it,” says Jones. This is the case in Italy, where the TSO, Terna, is in the middle of procuring its 75MW of storage (see separate feature). Out of this NGK, in Japan, is providing sodium sulphur batteries for all 35MW of Terna’s energy-intensive storage, which will be connected to high voltage lines to reduce congestion and open up the grid to absorb more wind-generated electricity, instead of shedding hundreds of GWhs through curtailment. The remaining 40MW for powerintensive applications will be installed on the islands of Sicily and Sardinia, to provide quick bursts of power to overcome loss of inertia in these small grids. The 40MW will be installed in two phases, the first as part of a storage lab to pilot the various battery and storage technologies, which include lithium ion and sodium nickel chloride chemistries. The remaining 24MW, installed in the second phase, will be deployed in these two types of batteries on the islands. Terna will operate all 75MW of the storage assets. This is different to what is taking place in California where the regulator’s storage target 1.3GW by 2020 obliges the state’s large public utilities to procure services from suppliers, as well as operate their own assets. The California Public Utilities Commission’s mandate was crafted in such a way to help establish a market where different business models, including third party ownership, can potentially thrive.

The role of integrator Terna’s approach, which is also happening across Europe in other storage pilots, reflects how utilities have traditionally done things. According to Jones, “Utilities are comfortable with

52 • Batteries International • Summer 2014

going out and buying the transformers, cables and other components to build grid assets, and take on the risk.” But even though batteries have occasionally been used on the grid, energy storage is proving to be a different beast. This is why companies such as S&C Electric, ABB and Siemens, all with decades of experience of supplying power infrastructure components for grids are jostling with each other to do the integration. These types of companies have the track records and the balance sheets to take on the risk of multi-million euro projects and are also familiar to utilities. ABB, which is supplying Italian DSO Enel Distribuzione with a 2MW energy storage system on Sicily, has historically done energy storage on a project-by-project basis. “That was until 2009 when renewables really began to take off and stimulus funding became available in Europe, and also the US, to finance pilots and projects,” says Stephen Clifford, who is in charge of global marketing and business development within ABB’s smart grids business. The company then decided to formalize its energy storage activities and the 2MW project with Swiss utility EKZ, completed in 2012, was one of the first one of these. “Although the system was developed by EKZ as a pilot, this is a commercial system from us. We’ve also done some projects in the US,’ says Clifford. ABB supplies both turnkey energy storage systems, such as for EKZ and Enel Distribuzione, as well as power conversion system equipment to customers. Similarly, for AEG Power Solutions grid-scale energy storage presents a two-fold opportunity. The company is a supplier of hardware components such as power conversion system equipment but is also increasingly focused on becoming an integrator of energy storage systems. To date, AEG Power Solutions has provided a turnkey battery storage system for an off-grid project in Mali, in Africa. Orders for the company’s storage converter, Protect.SC, for use in large battery energy storage systems

are also increasing, it says. One of these is for a vanadium redox flow battery installation in northern Germany, with Vanadis Power, where the storage plant will be used to bank locally generated wind power. The other project is in Spain in a storage system using lead acid batteries. Both projects are in the MW range. The energy storage systems will mainly be used for frequency regulation, peak load shifting and other current management functions. Typically these integrators buy batteries, often lithium ion, from manufacturers, which include companies such as LG Chem, Samsung SDI and Saft.

The acquisition trail However, as with any disruptive technology, the energy storage industry is attracting players from other industries as momentum gathers pace. Recently, Japanese technology company NEC leapfrogged to the top in providing grid-scale storage, through a $100 million acquisition — from Wanxiang Group — of A123 Energy Solutions, the non-automotive lithium ion battery and system integration division of A123. The company has installed more than 110MW of its lithium ion storage systems around the world. The new subsidiary, NEC Energy Solutions, will continue to supply energy storage using A123 Systems’ nanophosphate lithium ion cells and provide support for existing installations. In addition, NEC’s own lithium ion technology will also be available for use in the new company’s grid-scale storage projects. “Full system integration, by taking the lead on projects, as in providing turnkey project services, is key. We are not only a battery provider. As the energy storage market develops and the company increases its customer base, designing systems based on the customer’s needs will be important for success,” says Ciro Scognamiglio, NEC business analyst. But for some other companies, their strategy is dependent on not moving too far up the value chain. Samsung SDI, for the foreseeable future anyway, is interested in supplying battery systems for different storage markets and not doing the integration, preferring to work with companies such as S&C Electric. Italian industrial battery maker Fiamm, which developed and started producing sodium nickel chloride —

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COVER STORY: THE EUROPEAN GRID COMES OF AGE ‘salt’ — batteries originally for telecoms customers as an alternative to lead acid, has won tenders with utilities, including Terna, to supply largescale on-grid as well as off-grid storage projects. “With energy storage we are moving from supplying a battery to a system, but we don’t want to escalate up the value chain. We want to stay out of the way of our customers,” says Nicola Cosciani, chief executive of Fiamm Energy Storage Solutions, in reference to the energy management system portion of an energy storage installation. Some power conversion system suppliers, like S&C provide the energy management system, as does NEC. “What is very important is the management of the technology. We don’t want to only provide energy storage but provide the intelligence needed to manage these technologies, to optimize their functioning within the regulatory framework,” says Scognamiglio. In the case of Terna, the TSO is doing the energy management system side, integrating the various storage installations into its grid system. The energy management system, which is based on software controls, instructs — and coordinates — the battery system in its operation, based upon the requirements of the grid and other loads, such as renewable energy plants, that are also connected. One company specializing in energy management system is software startup Younicos, headquartered in Berlin. In north-east Germany Younicos is supplying a 5MW (5MWh) energy storage system in Schwerin for the green electricity producer Wemag. The company is delivering the battery installation as a turnkey project, which uses lithium ion batteries from Samsung SDI.

From pilot to proﬁt The battery array can store or release up to 5MW to stabilize the grid in West Mecklenburg, where there are lots of wind turbines, to provide the equivalent power of a conventional 50MW fossil fuel fired turbine, creating further grid capacity for electricity generated by renewables. Even though the project is a pilot, funded with a €1.3 million from Germany’s environment ministry, the unit will compete on the primary control market and generate a profit. To do this requires a pre-qualification by the grid operator at 50 Hertz transmission. Testing is being followed by commercialization by early autumn

54 • Batteries International • Summer 2014

The Kilroot power station in Northern Ireland, owned by AES Corporation, is also the proposed location for a 100MW lithium ion storage plant that AES will build and operate to integrate more wind into the local grid. Credit: AES Corporation

Jones at S&C Electric Europe believes there will be growth in the companies that set up IPP arrangements for storage. Some of the ﬁrst companies to deploy the technology will be renewables developers this year. Younicos’ background is in renewables and the company found from early work on small island grids that adding some storage — even just a few minutes of it — will enable 60% of an island’s electricity to come from renewables such as wind and solar, whereas without some form of storage

this amount is around 15% before the island grid becomes unstable. The company investigated and tested different energy storage technologies, including various battery chemistries, flywheels and supercapacitors, before settling on lithium ion as the best for short term storage requirements, typically in the minutes or hours, on a daily basis. Philip Hiersemenzel, a Younicos official, says: “Back in 2006 there was not that much available information on lithium ion batteries for stationary storage as the biggest market was consumer electronics. “For stationary storage, because lithium ion is expensive, the batteries have to be able to operate for a long time before needing replacing. Younicos found that Samsung had some of the best cells on the market and contacted the company.” The last few years have been spent on developing the company’s software to be able to find the battery’s sweetspot. “How you treat batteries makes a big difference to their lifetimes,” says Hiersemenzel. For UK Power Networks’ energy storage project on the Leighton Buzzard primary substation, S&C Electric Europe is lead supplier, with Samsung SDI supplying lithium ion batteries. However, it is Younicos’ software technology that will react to price signals and optimize the performance of Samsung’s batteries. The software also guarantees availability, charging and discharging as required and maximizes lifetime by maintaining the batteries at their opti-

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COVER STORY: THE EUROPEAN GRID COMES OF AGE mum state-of-charge, to ensure a long lifetime, thus helping to bring down the asset’s overall operational expenditure (OpEx) costs. “S&C has its own software for managing batteries for grid-scale stationary storage applications, but as the Leighton Buzzard project has to prove multiple business cases Younicos is one of a few start-ups, focused on software, which was able to deliver a platform that can make batteries carry out such a multiplicity of services and functions. “This reflects the complexity of the full extent of what is being asked of the battery bank in this particular project,” says Jones. But Younicos has ambitions to be more than a software provider to the industry. The company’s project with Wemag is important to show the company also acts as integrator, which seems to be the most dynamic portion of the grid-scale energy storage industry at present. Acquiring the assets and staff of Xtreme Power, which filed for bankruptcy this year, will help Younicos

get a foot in the door of the market stateside. “Xtreme can be thought of as a US cousin of Younicos. Historically both companies considered battery manufacturing as part of their energy storage business,” says Hiersemenzel. The German company is in the process of merging each business’ different technologies and will be picking up with Xtreme Power’s utility and power customers, which include companies such as Duke Energy and GE. “The US market is very promising, as it is potentially very big — even in terms of frequency response demand and California mandates alone. It will grow rapidly and we are now in a good position,” he says.

Supply chain in a state of ﬂux Trying to predict the fortunes of an emerging industry is a fool’s game. But what is becoming clear is that the highest rewards may be reserved for those with their eye on global opportunities in grid storage, as illustrated by acquisitions by NEC and Younicos,

and AES’ big battery project in Northern Ireland. Terna, too, is getting in on the action with plans to spin off a company that will provide services based on the TSO’s accumulated experience of how energy storage can exist as grid assets, especially in terms of ensuring a functioning grid as penetration of intermittent renewables increases. To date, Terna’s procurement programme makes Italy one of the largest markets for energy storage, in the near-term, and this has attracted the interest of many grid operators from around the world, particularly from California, South Korea, Japan, Australia, Switzerland, Hawaii, Chile, Spain and the UK. Even though such a company would be a competitor to the likes of S&C and ABB, according to Jones, such a company would play well in the industry. “As part of one of the leading TSOs it would, therefore, help make energy storage more credible and that is what this industry needs going forward,” he says.

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Batteries International • Summer 2014 • 55

COVER STORY: PROFILE, THE ITALIAN GRID Italy’s utilities are increasingly turning to energy storage as a way of managing the regional challenges of a grid where renewable supply is at one of the end of the country while demand is at the other. Sara VerBruggen reports.

Energy storage offers way to unify renewable power gap in Italy’s north-south divide Two countries united by a common language. It’s an odd phrase. But one that defines modern day Italy. To the north, an energetic industrialized centre for manufacturing. Think Milan, Turin. But in the more rural south, a less developed pace prevails. In terms of the grid: in the north it’s a sophisticated, extensively interconnected network. But further south in the agricultural central and southern parts of the long, narrow country, the grid is far less well developed. The trouble is that it’s in the south where the growth of renewables has been strongest — particularly for wind power in provinces such as Puglia. The result is that the high voltage cables and connections, which serve as the transmission grid’s backbone, are under strain. Getting wind power from the south, where demand is low, up to the north, has been a headache for Terna, the country’s transmission network operator. “2010 was a crunch point for Terna. Congestion was a massive problem, with 500GWh of wind curtailed in that year,” says Carolina Anna Tortora, head of innovation and development in power intensive energy storage, at the transmission system operator (TSO). To introduce flexibility into this system for the region, Terna is procuring 35MW of energy-intensive batteries, under its 2011 Grid Development plan. This will avoid the loss of hundreds of GWh of wind energy, providing economic savings as wind plant generators have to be paid for energy produced even if it cannot go into the grid. Under its 2012 Grid Safety and Defence plan, Europe’s largest TSO and the sixth largest in the world, is buying 40MW of power-intensive energy

56 • Batteries International • Summer 2014

storage, which is being installed on the islands of Sicily and Sardinia, to compensate for the loss of inertia in these smaller mainland-connected grids and provide services such as frequency regulation. Terna’s investment in 75MW of energy storage, which is in the region of €300 million ($400 million), is in response to government-level intervention, as opposed to a change in market mechanisms, which has occurred in the wholesale power markets in the US. In the US TSOs, such as PJM Interconnection, pay more for fast response storage to provide some frequency regulation, an ancillary grid service. However, both Terna as well as distribution system operators, are able to achieve a 2% additional return on storage over and above the current 6% for network assets, reflecting the cost and risk associated with these types of technology investments.

Terna is obliged to provide the regulator, Autorità per l’energia elettrica il gas e il sistema idrico (Italy’s gas and energy authority), with performance data and analysis every six months and on an annual basis. The TSO will also be assessing each installation’s performance based on how the energy storage systems operate in the grid, delivering various services, in terms of speed of response, life cycle and other criteria.

Battery technologies and suppliers Japan’s NGK, announced in 2013, is supplying 35MW (252MWh) of sodium sulphur batteries to reduce local congestion on Italy’s high voltage grid, as well as increase primary, and also tertiary, reserves and provide voltage support. By the end of this year, the batteries will be installed and operational

These projects in Italy, though pilots, are important — they’ll enable utilities and the regulator to see how storage provides different functions and potential ancillary services, such as frequency regulation, which could generate revenues in future A 2MW (2MWh) energy storage system, supplied by NEC, which will be installed at Enel Distribuzione’s Chiaravalle primary substation in Calabria. Credit: Enel Distribuzione

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COVER STORY: PROFILE, THE ITALIAN GRID on two 150kV lines, in three separate locations in the region of Campania, in southern Italy; 12MW in Benevento province, 12MW in Flumeri and 10.8MW in Scampitella, which are both in Avellino province. For its 40MW of power-intensive demands, Terna has, so far, chosen lithium ion as well as sodium nickel chloride batteries from various suppliers. Saft is supplying 2MW (2MWh) of lithium ion, Samsung 2MW (2MWh), in a consortium that includes energy storage software controls provider Younicos, BYD 2MW (2MWh), Toshiba 2MW (2MWh) and LG Chem 1 MW (0.5MWh), with Siemens building the energy storage system. Fiamm is supplying 2.4MW (8.3MWh) and GE 1MW (2MWh) of sodium nickel chloride batteries. The batteries are being installed on Codrongianos, in Sassari province on Sardinia and in Ciminna and Casuzze, both in Palermo on Sicily, in two phases. NGK was selected by Terna, based on its global installations which amounted to some 200MW, reflecting the company’s experience and references. In comparison, at the time, technologies such as lithium ion had a much smaller installed base, mainly in pilots and demonstrations. “These companies were chosen as part of a worldwide tender, based on whether the technical specifications were high enough to meet with our demands,” says Tortora. “But, as part of requirements set out by the economic development ministry and the energy and gas authority, Terna must test out different technologies, to reduce the single supplier risk and gain experience by gathering knowledge on the state-of-the-art electrochemical storage.” Terna is in the process of procuring the remaining 28MW of energy storage for its power-intensive needs. In its tenders the TSO specified a maxi-

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mum of 4MW of flow batteries as well as lithium supercapacitors. However, most of the storage under Terna’s Grid Safety and Defence plan will be lithium ion, followed by sodium nickel chloride batteries.

Calculating ROI Because different end services are potentially possible with batteries the whole process of calculating the return on investment is complex, based on the battery’s energy capacity, speed of response, efficiency, its ability to perform as primary or secondary reserve and so on. For wind curtailment, specifically, the return on investment is proving elusive to calculate. “There are many different variables that can affect this ultimate outcome, such as battery capacity, grid developments and factor-

ing in works deferral and so on,” says Tortora. Terna is modelling return on investment with the regulator and also McKinsey. The nearest comparison on investment returns might be solar PV technology. “PV is not as complicated as energy storage, as it only generates energy,” she says. “However, PV panels have been very expensive and policy measures and subsidies have helped bring down the cost by stimulating market demand. Batteries are capitalintensive. But, like PV, their operational costs may not be as high as with other technologies.” According to the Italian National Renewable Action Plan (NREAP) by 2020 some 8GW of PV will have to be installed. At the end of 2013 PV generation produced over 17GW. “This

STORAGE IN THE PIPELINE As a partner in the EU-funded Grid 4EU project, Enel Distribuzione will also be installing an energy storage system, approximately 1MWh, in Forlì-Cesena, in the Emilia Romagna region. The demonstrator will increase the medium voltage network’s hosting capacity for distributed energy resources, by introducing active control and demand response of generators on the medium voltage network. The existing grid is designed for power ﬂowing in one direction. The connection of lots of distributed energy resources to the grid can affect power quality, create imbalances between load and generation and can lead to grid congestion as well. Forlì-Cesena is a rural area, but with a high penetration of renewable energy production, including about 40MW of capacity split over some 24 producers, but power consumption is also low. The whole Grid 4EU project runs until January 2016. Companies working with Enel on the demonstrator include Siemens as well as Cisco. Acea Distribuzione a local DSO that operates the distribution network in Rome is also commissioning two small storage systems, both lithium ion battery based, from NEC. These installations are at secondary substation in the capital city, one inside, which interfaces with the grid at low voltage and the other

outdoor, which interfaces with the grid at medium voltage. The main functionality of the LV 90kWh system is for backup, to reduce or avoid electric outages, depending on the length of interruptions, to the end user when damage on the medium voltage cable, where the secondary substation is connected, occurs. The system discharges the battery to avoid outages or to reduce, or downgrade, longer interruptions. In Italy, as with some other countries in Europe, utilities face ﬁnancial penalties if outages are too frequent or too long, the point being to reduce interruptions and power cuts. The main functionality of the other medium voltage 45kWh storage system, outside, is for renewables integration. The batteries will stabilise electricity fed onto the grid by a nearby PV power plant to increase hosting capacity and improve overall power quality.

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COVER STORY: PROFILE, THE ITALIAN GRID TROUBLE ON THE HORIZON Italy’s plans — ﬁrst revealed by news agencies in June — to cut subsidies for solar power producers looks set to alienate grid investors and, amid a tangle of possible court battles, causing a political storm. This is in reaction to an initiative by prime minister Matteo Renzi who is trying cut power bills by 10% to households and small businesses. The moves, which still have to be formally tabled to parliament, could potentially save up to €400 million. The bulk of the savings would come from spreading subsidies to solar power producers over a longer time frame, probably from 20 to 24 years. The government says its solar industry has enjoyed one of Europe’s most generous incentive schemes. This, it says, has been paid for by consumers’ electric bills. Despite the prospective cut, overall Italian consumers will cost taxpayers as much as €200 billion over the next 20 years, says one media commentator. The new rules apply to solar plants of over 200kW, This will hurt some 8,600 operators which receive about 60% of subsidies. “Italy’s PV market took off at the end of 2010 when new rules sent production subsidies up from €750 amount of renewables — more than double set by our targets — means new flexibility is needed to ensure the electricity market functions and without resorting to measures such as curtailment,” says Ciro Scognamilio, a business analyst in NEC’s smart energy solution division, within the company’s Europe and Middle East and Africa business. Italy has become one of Europe’s leading test-beds for energy storage, with both the TSO and various distribution system operators (DSOs), procuring batteries to test the various possible functions of the technology on different portions of the overall transmission and distribution network.

Storage on the distribution network Enel Distribuzione, which operates the majority of the Italian electricity distribution network, is also installing storage, in addition to rolling out smart meters and trialling other smart grid technologies.

58 • Batteries International • Summer 2014

million in 2010 to €3.8 billion in 2011 and €6.7 billion in 2013,” said the commentator. “In the past ﬁve years, over €50 billion has gone into Italy’s renewable energy industry. Italy has around 17GW of solar capacity.” A potential headache for the government is litigation. Retroactive regulatory change by Rome could contravene Italian law and the EU’s Energy Charter Treaty. In 2013 Spain tried to do the same with renewable tariffs. The result (perhaps predictably) was a wave of multi-billion euro compensation claims by investors. The same is likely to happen for Italy with unhappy investors lobbying national and international courts for arbitration. A political dimension is also likely to add pressure from foreign governments seeking redress for their investors. Earlier this year, the distribution system operator ordered a 2MW (2MWh) energy storage system, supplied by NEC, which will be installed at its Chiaravalle primary substation in Calabria, a southern region in the ‘toe’ of Italy’s boot. The batteries will be used by Enel Distribuzione to test a potential new dispatching service for DSOs with the national grid. “The system will be used to control the flow of electricity from Enel’s substations, using electricity demand forecasts, which are sent to Terna, though during the trial the TSO’s role will be simulated by computer software,” says Donata Susca, head of networks development at Enel. The system does this by storing surplus energy produced by renewable energy generators, releasing stored energy when the sun is not shining or the wind is not blowing. The batteries will enable local consumption of stored surplus energy. Rapid variations in capacity due to sudden wind gusts or clouds will be softened. This

“After the ﬁrst year of operation we should have all the elements to evaluate performance over all the four seasons, which are critical for renewable energy plants. The ﬁrst operational results should already be available by the end of 2014” energy storage system will reduce the variability of energy transmitting between the distribution and transmission portions of the grid in areas such as Chiaravalle, where there is a large installed base of renewables. Due to the increase in distributed generation, in particular PV power plants, many primary substations are seeing a reverse flow from medium voltage to high voltage lines, causing a high variability in the energy exchange profile at the primary substation. “This means several issues, for instance the increase of prices on the ancillary services market,” says Scognamilio.

Performance evaluation The Chiaravalle storage system will test a range of functionalities and services, including peak shaving, power balancing, power quality, voltage regulation and frequency regulation. “After the first year of operation we should have all the elements to evaluate performance over all the four seasons, which are critical for renewable energy plants. The first operational results should already be available by the end of 2014,” says Susca. The NEC project was awarded as part of a larger tender for batteries by Enel Distribuzione. SAET is supplying a 2MW system for Campi Salentina, in Puglia, and ABB is supplying a 2MW of batteries on the Contrada Dirillo distribution substation in Ragusa, on Sicily. The plant, which will use lithium ion batteries made by Italian battery maker FAAM, should start operations this summer. The main aims of Enel Distribuzione’s Chiaravelle and Contrada Dirillo projects are similar, to optimize renewable generation from solar and wind sources as well as soften the intermittent and unstable generation profile inherent in wind and solar, harmonizing flows of

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COVER STORY: PROFILE, THE ITALIAN GRID renewable energy into the grid. Enel Distribuzione’s existing energy storage installations include a 0.7MW (0.5MWh) lithium ion battery storage plant in Isernia, in the south-east region of Molise. The system, built by Siemens, has been running since 2011. The batteries combine generation from distributed energy resources with reliable and safe management of the system. The project is part of Enel’s wider use of smart grid technologies connected to the Carpinone substation in Molise. These include devices for estimating electricity generated from renewable

resources, sensors for monitoring grid volumes, interaction with electricity generators to provide advanced regulation of input flows, recharging stations for electric vehicles, and equipment installed in homes to allow roughly 8,000 households, which are connected to the Carpinone substation, to monitor their consumption. These projects in Italy, though pilots, are important because they will enable utilities and also the regulator to be able to see how storage provides different functions and potential ancillary services, such as frequency regulation, which could generate future revenues.

predominately demonstration projects. However, installations should rapidly grow to more than 6GW in 2017.

STORAGE BY NUMBERS

Exact numbers vary on the number of energy storage projects around the world, but in October 2013 the US Department of Energy’s (DOE) international energy storage database had surpassed 420 documented gridconnected energy storage projects worldwide. Edison Electric Institute said last year that it had identiﬁed 150 transmission projects valued at $51.1 billion that are planned for the US by 2023. Some 76% of these support the integration of renewables,. Edison expects transmission investment in 201415 to remain signiﬁcantly ahead of where it was in 2011. Natureo Finance is tracking over 120 large-scale grid-tied energy storage projects globally that are 500kWh or above. The EU has funded almost €1 billion for energy storage projects on the continent, while Germany’s government-led self-consumption subsidy for storage linked to solar PV could be worth an estimated €80 million a year. Market forecasts vary too. However, a recent report by IHS forecasts the grid-connected

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Existing regulatory frameworks in Europe do not play to the different advantages of energy storage — the technology can be both a distribution and a generation asset — making it challenging to gauge the real economic value, or return on investment of storage. For example, an accurate energy exchange profile, which Enel Distribuzione’s energy storage system will provide to the TSO, could potentially incentivize utilities to invest in storage as the only way to ensure power forecasts accurately match real-time generation.

energy storage market to exceed 40GW globally by 2022 and another long-term forecast by Navigant projects revenues from the global utility-scale storage market to exceed $2.5 billion by 2023, from an industry worth $164 million in 2014. Drivers include advances in electrochemistry that are enabling grid management through batteries, which until recent years would have been inconceivable due to safety, cost, durability and efﬁciency concerns. According to IHS’ prediction, between 2012 and 2017 the US will be the largest region for grid-connected energy storage, accounting for 43% of installations during that time. The analyst estimates that only 340MW of systems were installed between 2012 and 2013, and these are

Regional demand In the US grid-connected storage installations are driven by pay for performance rates for provision of frequency regulation services. In the commercial market, the drivers for storage in the US include high demand charges. Storage procurement targets in a growing number of states, led by California, will drive grid-scale storage in the next few years. Other global regions that are beginning to see significant deployment of grid-connected energy storage, include Germany and Italy, in Europe, while in Japan, increasing penetration of renewables, especially solar photovoltaics as well as growing peak demand are creating ripe conditions for storage. Technology trends Natureo Finance has found that for power-based storage technologies there was strong subsidized growth in 2011, followed by a pause in 2012 and weakness in 2013. Over this period sodium sulphur and flywheels waned while lithium ion began to strongly emerge, with a focus on flow battery technologies too. In terms of technology trends for energy-based storage technologies sodium sulphur has largest installed base by far. But, in recent years this technology has seen little growth, creating opportunities for alternatives like lithium ion and flow batteries.

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PROFILE: ATL ATL, a Chinese lithium battery start-up ﬁrm 15 years ago, has become a manufacturing giant. It has many lessons to teach the energy storage industry. Mike Halls reports from ATL’s ofﬁces in Ningde, south China.

Next generation lithium: from electronic components to the smart grids of the future

ATL has grown from a handful of employees based in Hong Kong in 1999 to a lithium polymer battery giant. In 2012 the ﬁrm had an annual output capacity of 500 million units, including pouch cells, cylindrical cells and prismatic can cells. It now has a staff of around 22,000 www.batteriesinternational.com

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PROFILE: ATL

isconcertingly straightforward. That’s your first impression when you meet Robin Zeng president and CEO of ATL and Mike Chang, the chairman. For an industry inclined to talk itself up at every opportunity — at least in the lithium side of the business — Zeng and Chang are open about their successes, candid about their failures and ambitious as to where they see ATL developing. They are also very much at ease with each other, both laughing and joking as they reflect on the twists and turns of what could arguably be called one of China’s great success stories. The fact that they’re equally comfortable talking in Mandarin or English adds another dimension to their thoughts. But perhaps most importantly they’ve a fascinating story to tell. The ATL story begins with its formation — the letters stand for Amperex Technology Limited — as a small startup in 1999. Since then it has grown from a handful of employees based in Hong Kong to a lithium polymer battery giant. Its pouch battery cell production is, depending on how you calculate these things, either the second or third largest in the world. In 2012 the firm said it had an annual output capacity of 500 million units, including pouch cells, cylindrical cells and prismatic can cells. It now has a staff of around 22,000. While China has grown at an annual compound growth rate of around 9% a year for the past decade or more, ATL has rocketed ahead expanding at some 40% year-on-year. This extraordinary growth story has been fuelled from a number of directions — initiatives by the Chinese government for the country to take a lead in export manufacturing, the unprecedented growth in worldwide sales of small electronic devices (from iphones to tablets and much more) and the ability of the firm’s management team to ride the boom in these products. ATL’s business is founded on three interlocked fields of business, says Chang.

POWER AND ENERGY DENSITY: NEXT STEPS ATL has a network of associate research collaborations with the CAS Institute of Physics, the China University of Mining and Technology, the Universitas Amoiensis at Xiamen University, Beijing University, China’s Industrial Technology Research Institute, the Jiangxi Normal University, the Tsinghua University and with the US’ Argonne National Laboratory and through Bob Galyen, the firm’s chief technology officer, access to the top ranks of the US’ SAE automotive executives. ATL also works with the China Research Institute and has recently been working with Erickson on 48V batteries as well as conducting work in Australia with renewable energy companies. ATL’s development has been based on deploying this research and this led to the firm’s move into EV batteries. In 2008 ATL launched its first foray into the EV sector building a factory in Ningde, some 700km south of Shanghai, dedicated to creating the largest electric vehicles lithium-ion battery producing base of the world. The site is huge — 551,472m2 — with options given by the local prefecture to extend the plant as far as the hills in the distance. The initial work area for when the first five production lines were up and running, as per the site operating ceremony in June 2012, was about 50,000m2. Connections to the Chinese highway network are being built and ATL looks set to become one of the major employer firms within the region. The overall cost of the present development is likely to be around $1 billion.

It’s difficult to give a grasp of the size of the factory and its extraordinary growth story without talking visions of a battery city, complete with its own two police sub-stations, hospital, 24 hour a day canteens and tower blocks of flats for the workers. The main admin offices back on to four huge factory buildings — two of which have been built in the last two years and of which two more are being planned for construction imminently. ATL has plans — dependent on setting up local partners to co-locate to the plant — to double the entire facility within the next five years. The scope of the firm’s plan is extraordinary. Hundreds of electric vehicles or plug-in hybrid electric vehicles have been produced by top-tier automakers with ATL battery packs. “Together, we’ve accumulated over 10 million kilometres of real live driving experience over the past years,” says a company spokesperson. “And that experience has enabled ATL to position itself as one of the top contenders to capture the future growth of the EV battery market — both in China and around the world.”

Connections to the Chinese highway network are being built and ATL looks set to become one of the major employer ﬁrms within the region

While China has grown at an annual compound growth rate of around 9% a year for the past decade or more, ATL has rocketed ahead expanding at some 40% year-on-year 62 • Batteries International • Summer 2014

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PROFILE: ATL The first is its battery supply to consumer electronics such as mobile phones and tablets, the second is its innovative work as a battery developer working with electric vehicles and the last are its now pioneering and deeply ambitious work in moving into energy storage at the microgrid (and beyond) level. Historically, the firm and its counterpart arm CATL (Contemporary ATL) started with their work as a battery supplier for consumer electronics. They then have worked their way into electric vehicles where they have also become a major player and are now developing a suite of products for their grid work.

Early wins Both Zeng and Chang, who’ve been with the firm for most of its existence, date part of the success of the company to its early licence contract with Valence Technology, negotiated in 2001. This provided it with the worldwide rights to produce and distribute lithium ion batteries, using Valence’s intellectual property for cobalt and manganese cathode materials. In May 2002, the company started to manufacture batteries for cell phones, PDAs, portable DVDs, notebook PCs, earphones and smart card applications. ATL’s lithium ion polymer batteries were later used in the portable DVD market and the firm was reckoned to have ranked as number one in world market share by 2007.

The following year ATL’s batteries entered the MP3/MP4 market. The end client was Apple. Or that’s what a long history of market rumours — and even Apple’s 10-K filings with the US Securities and Exchange Commission — seem to suggest. Zeng and Chang are happy to confirm that the batteries are made for a US-based computer company but are adamant that they cannot — and will not — disclose which firm it is. An extensive site visit across the firm’s facilities in Ningde, in south China, showed nothing to prove the Apple link apart from extensive internet rumours gleaned in London. But the fact of the matter is that it couldn’t have been a better fit than a Chinese firm looking to produce highend batteries — and to develop these

“We knew that many of the business subsidies wouldn’t last — these kind of things never make long-term sense — so we were actually dealing with the fundamental differentiator between ourselves and many other massvolume manufacturers” — Mike Chang

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batteries further — with the most adventurous brand on the plant. “We learnt an extraordinary number of lessons from this partnership,” says Chang, who has spent most of his life in advanced technology businesses. “Perhaps the most was the idea of continual improvement — how to offer a better and yet better deal for the client, while still maintaining profitability. “In one sense this isn’t new, but it also fitted into the overall way that the firm operates. We insist that Chinese culture infuses the way that we operate as a company. We’re not being over-theoretical but it’s to do with both the attention we pay to detail that has characterized our country over the years as well as having a larger sense of what we do and how we should do business.” At the heart of this was the most basic of business principles — how to justify manufacturing costs (and to do so locally). The result was what they called the 301 program, how to achieve a 30% process and 30% equipment reduction. The shut down time due to product model change-over of the automated line has to be less than one hour. “We knew that many of the business subsidies wouldn’t last — these kind of things never make long-term sense — so we were actually dealing with the fundamental differentiator between ourselves and many other mass-volume manufacturers,” says Chang. “We wanted to keep the quality up, or even better, but reduce the price. We weren’t looking at cutting the cost of labour but better and more efficient automation.” In the event the 301 program worked. With characteristic enthusiasm the two looked at seeing if they could do another 301 program on what was left. “We called it the 601 program,” says Chang. “But in the event we could only get it down to 501,” laughs Zeng. “There

Batteries International • Summer 2014 • 63

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PROFILE: ATL THE NEXT BIG CHALLENGE: THE GRID

Bob Galyen: “Our standards are international ones. An engineer at BMW or General Motors wouldn’t ﬁnd anything out of place. The same intellectual rigour is in place”

The next step forward for ATL is advancing from the electrical vehicle markets to the greater scale and the different challenges of the electrical energy storage markets. In 2011 it won the bid on the first China state grid project for wind and photovoltaic energy storage systems. That year it installed some 20MW hours of battery cells into the grid. The figure for 2014 is going to be around 190 MWh and 2015 to continue growing up to 560MWh just in China alone. “The grid is our next big challenge,” says Zeng. “And the ESS side of the business is going to be huge given the worldwide shift to renewable energy sources in the coming decade. Smart grids are going to be the next big thing in energy storage.” Outside the main office complex in Ningde is a container with a 1 MW/2 MWh energy storage system. This has been operating since 2011. Containerization highlights the modular system that ATL can offer ATL’s enthusiasm has also got a national dimension. “We

have a commitment to being environmentally concerned — it’s part of what we do and how we approach things,” says a company spokesperson. In this its green policies neatly tie in with the central government’s determination to tackle air pollution which has caused immense difﬁculties in China’s largest cities and damage to its citizens. “China has moved from an agrarian economy to the manufacturing workhouse for the world — and the wealth that provides — in just a generation,” one China economist told Batteries International. “Having made those advances, the next step is to consolidate its development by bringing environmental standards closer to those of the west. The problem for the government is that central government dictates get diluted by regional authorities. “The move into renewables may still be uncoordinated — they’re still building coal-ﬁred power plants every few days — but it is happening.”

Jason Tang: “When you are building lithium ion car batteries for ﬁrms such as BMW, the quality and durability has to be second to none. And that requires constant testing and retesting”

The result was what they called the 301 programme, how to achieve a 30% process and 30% equipment reduction. The shut down time due to product model change-over of the automated line has to be less than one hour 66 • Batteries International • Summer 2014

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PROFILE: ATL are constraints, such as the price of materials, for example, that are walls one can’t break through. But these kinds of evaluations are useful in other ways at showing you not just a cheaper way to work, but a better way of doing so.” Indeed every aspect of its operations — from safety to security to operational integrity — is regimented and, perhaps more importantly, intelligently respected. “This is a world class facto-

ry,” says Bob Galyen, chief technology officer and one of the pioneering figures in General Motors’ EV1 project . “Our standards are international ones. An engineer at BMW or General Motors wouldn’t find anything out of place. The same intellectual rigour is there.” Zeng adds another proviso as to their approach — the need for partnership. “Our goal is to be a tier one supplier for some of the top OEMs in the world.

“We can’t be blindsided by new technology. Look at what happened to IBM where the business model was turned around by the arrival of Windows and Microsoft’s operating system. It’s sensible to be cautious” — Robin Zeng

“We learnt an extraordinary number of lessons from this partnership. Perhaps the most was the idea of continual improvement — how to offer a better and yet better deal for the client, while still maintaining proﬁtability” — Mike Chang

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Partnership has two faces — strategic alliances with those that can advance our technology skills and range and the ability to partner those firms that need this provision.” From the technology point of view ATL over the years has publicly announced strategic relationships with firms such as 3M (for the licence of intellectual property for nickel-manganese-cobalt cathode materials in lithium ion batteries) and Altair Nanotechnologies which has been pioneering, for instance, nano-structured lithium titanate spinel oxide (Li4Ti5O12, LTO) electrode materials that replace the graphite electrode materials found in anodes of current lithiumi-ion batteries.

Pushing out the boundaries Perhaps one of the distinguishing marks of ATL through the years has been that it has carefully eschewed any kind of low cost, low price model of doing business. While, for example, the standard lithium battery guarantee was for two years, ATL pushed for providing a four year warranty — all the more important when Apple and its competitors started to introduce embedded batteries. Safety was a constant theme too, the firm made sure, as Zeng puts it “that if our batteries die, at least they’ll do so quietly”. Failure to recognize that risk caused a gaping hole in Sony’s profits in 2007 when it had to recall as many as 20 million — some estimates put it higher — laptops that contained its faulty batteries. (And a lesson that doesn’t seem to have been learned to this day following Sony’s recall of further laptops this April.) Attention to detail was also accompanied by both good fortune and sound finances. Realising that lithium polymer batteries were going to become the next generation of lithium ion, ATL sought further venture capital funding — the so-called series ‘B’ round. Typically, this is where development is complete, technology risk is removed, and early revenue streams may be taking shape. ATL’s aim was a simple one: capitalize on the fact that its new polymer batteries were thinner and more flexible than traditional ones. They also offered consumers an energy density some 20% higher than its competitors. The smaller size and greater power requirements would immediately make them suitable for the rapidly evolving markets for mobile phones, PDAs, digital cameras and camcorders, portable

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PROFILE: ATL

Aerial view of ATL’s facilities in Ningde. Two years ago two of the four factories didn’t exist, nor much of the residential accommodation

DVDs, notebook computers, and Bluetooth devices. Greater working capital would allow ATL to quickly increase its manufacturing capacity. This further $30 million — $22.5 million came from private equity firm, The Carlyle Group, one of the firm’s initial seed capital investors and $7.5 million from 3i — helped the firm grow. The money was released in June 2003 and almost exactly two years later ATL was sold lock, stock and barrel to Japan’s TDK Corporation for $100 million. In addition to his duties as president and chief executive officer of ATL. Zeng is also general manager of the Energy Devices Business Group at TDK. At the time of the sale, ATL employed some 3,000 employees, was headquartered in Hong Kong and had a manufacturing plant in Dongguan in the People’s Republic. It had net assets of around $50 million.

who has also a Phd in Condensed Matter Physics from Institute of Physics, CAS (Chinese Academy of Sciences). Chang earned his doctorate in electrical engineering from the University of Notre Dame in, Indiana, USA. “And around 300 masters degrees under everyone’s boots too. We focus on cell material science, cell/modular design and battery pack and system integration.”

In terms of intellectual property ATL says it has applied for around 700 local patents of which 300 have been issued. In the US some 30 have been applied for and five issued. Although Zeng and Chang each have academic backgrounds that would make them comfortable in research institutes around the world, they believe that hands-on R&D on the manufacturing line is part of the way forward. “Our research is inversely proportional to common sense!” says Chang. “Sometimes, for instance, we’re more interested in the how of the manufacturing line rather than the why.” This is reflected in the emphasis the firm puts on simulation and modelling as to development. “Every manufacturing process must have a simulation,” says Zeng. And this is applied to everything from molecular models of ion transfers within crystalline structures to earthquake simulations of its own factories. Investment in R&D doesn’t come cheap. Jason Tang, new head of research and testing, is proud of the vast warehouse that has been constructed

“The grid is our next big challenge. And the ESS side of the business is going to be huge given the worldwide shift to renewable energy sources in the coming decade. Smart grids are going to be the next big thing in energy storage” — Robin Zeng

R&D at the core One of the key features of ATL over the recent years has been its emphasis on research and development. “We can’t be blindsided by new technology,” says Zeng, who also acts as dean for the research institute that is attached to the firm. “Look at what happened to IBM where the business model was turned around by the arrival of Windows and Microsoft’s operating system. It’s sensible to be cautious.” The firm is committed to its R&D team which it says now numbers around some 500 employees, it allocates 6% of its revenue to this budget — a percentage that Chang wants to lift to 8% which he regards as a better norm. That said, when comparing the number of staff with, say, Argonne, the US National Laboratory, ATL is ahead of the pack. “We’ve got something like 100 doctorates working for us,” says Zeng,

68 • Batteries International • Summer 2014

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PROFILE: ATL where battery testing will take place. “It’s just a shell now,” he pointing out the first machine installations. “But this will be a hive of activity in a couple of months’ time. When you are building lithium ion car batteries for firms such as BMW the quality and durability has

to be second to none. And that requires constant testing and retesting.” In December BMW Brilliance launched its Zinoro 1E into the Chinese market. Although it’s not the first electric vehicle to be sold in China, BMW says it’s

In December BMW Brilliance launched its Zinoro 1E into the Chinese market. Although it’s not the ﬁrst electric vehicle to be sold in China, BMW says it’s the ﬁrst luxury ‘Electric Sports Activity Vehicle’ sold as a brand in the country — ATL makes the complete battery pack

the first luxury ‘Electric Sports Activity Vehicle’ sold as a brand in the country. ATL makes the complete battery pack — a modular three part design that has the odd characteristic of being completely functional but whose steel casing design oddly lacks the flexibility and lightness of weight seen in other EVs. BMW, whose reputation for testing rigour and high engineering standards is close to unsurpassed in the automotive business, maintains a permanent, floating, cohort of staff constantly checking that every step of the battery manufacturing process is undertaken as scheduled. “They wouldn’t work with us, if they had the slightest thought that we weren’t up to the job,” says Galyen. Perhaps the best example of the success that ATL has achieved — and exemplifies the strides it is making in developing yet better lithium batteries — is shown in the attached chart which maps out where the firm has come from and where it seeks to go. The impact of the graphic description would be all the more striking if both scales did not have to have exponential bases.

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Batteries International • Summer 2014 • 69

ATL-CATL & CHINA: A PERSONAL PERSPECTIVE Bob Galyen, who’s been a feature of the battery business — both lead and lithium — for over a quarter of a century upped sticks in July 2012 to relocate from the US to China. He told Batteries International about the reasons for his move.

O brave new world that has such people in’t!

Laid back. It’s perhaps the only way to describe Bob Galyen as he lounges on the balcony of his fifth floor flat in central Ningde. It’s evening. Down below, there’s lush vegetation and a surprising tranquillity broken only by the gentle sound of the so-called “barking frogs” famous in that region of south China. Bob, who’s recently been named as one of the most influential foreign scientists working in the country in its One Thousand Talent Plan, is keen to explain his decision to leave the US on a five year contract as chief technology officer at ATL and its sister company CATL.

Bob, before the why’s, the wherefores! The move to China — how did it happen? It all started when I met Robin Zeng at a Shenzhen conference in December 2011. Robin asked me to dinner to meet “some” of his engineering managers. To be precise there was 56 of them. He wanted them to have some external exposure to the automotive industry. Little did I know that it would turn into a job offer by the April!

72 • Batteries International • Summer 2014

At that time, I was president of the battery division of Magna E-Car and based in Michigan. I wasn’t looking for a new job but the idea of working in China with one of the fastest growing battery companies in the world appealed to me. It appeared that all those years of training in the battery and automotive sector would pay off in a job offer as the CTO of the company. Robin invited me to come to Ningde in June — it’s about 700 kilometres south of Shanghai—to tour the plant and offered a formal

contract. By July the move was complete and a new chapter in my life had started.

What were the main factors that made you move to ATL after your meetings with Robin in California? Robin’s job offer made me think how I wanted to finish my career before retirement. After investigating Amperex Technology Limited, I found that its year-on-year growth rate, the vast customer base it has in consumer electronics and the forward planning into the transportation and energy storage market sectors, really appealed to me. It looked to be a great place to make a difference — and that’s something I wanted to do — albeit half way around the world from my family. Clearly it was a tough decision to leave them behind for a five year contract but my children and their spouses provided great moral support. Over the years my career has been blessed with great mentors. During discussions with many of my colleagues, we agreed, where else could a battery expert help change the world via energy storage, than in China? How else could someone make a big impact on the world by returning the favour to mankind than to train a company in the fastest growing country in the world? If you had to pick one, it would be China! China is certainly going through its evolutionary period, much like the UK, US, Japan, and Germany did, where pollution from carbon fuel sources create enormous amounts of pollution. However, the Chinese government is taking great strides in decreasing this pollution by instituting policies and creating programmes to assist industry in production of renewable energy sources and storage technologies. This government involvement also generated another opportunity by the spawning a new company called CATL. By December 2012 my responsibilities shifted to the CTO role for this newly formed company.

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ATL-CATL & CHINA: A PERSONAL PERSPECTIVE How have you found life in China? What do you miss about the US and if you left Ningde what would you miss? My home is just a short walk from a large mall attached to a five star hotel and these provide a good source of nearby entertainment and dining with a 3D IMAX theatre and a host of restaurants serving Chinese, Korean, and Japanese. It even sports western cuisines of Pizza Hut, McDonald’s and Dairy Queen! My favorite is to go to the Wanda hotel to hear my friends Daisy and Felix from the Philippines sing music dearly missed from North America. The biggest thing I’ll miss upon leaving China will be the people. Their sincere warmth and compassion to other human beings is impressive. Being a foreigner in someone else’s country speaking a different language can be intimidating, but here that isn’t the case. My working colleagues have become great friends. They help, and have helped, beyond the call of duty.

As part of this, you’ve long had an international dimension to your working life, how is that now? And an industry viewpoint? From the past experiences of international travel for GM, Delphi, Magna and my own company Tawas, this work experience is quite different. It is the first time living abroad for any length of time as an expatriate. The move was made much easier when my executive assistant of 12 years, Luanne, agreed to move to China to support my new job. The most notable difference is stepping out of the management and leadership roles into more of a mentor and teacher role for my colleagues. Teaching has always been something I’ve enjoyed for years but now it is my primary function with our young technical teams here in Ningde. It is also rewarding that the company supports me with public speaking opportunities. Some of these are on behalf of the company and others for professional organizations which influence the structuring of the fledgling energy storage market. The most notable organizations are the SAE International Battery Standards

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Ningde: modernizing rapidly as its industrial base expands

Steering Committee and the World Alliance of Low Carbon Cities, just to mention a few.

You speak about a larger perspective of the way that energy storage using ‘advanced’ batteries will change the world, discuss! During my 37-year career, 32 were spent in the lead acid battery world. It is hard to get the acid out of your veins, so to speak. Over those first three decades all we heard was that lithium energy storage was only 10 years away. Well guess what? It is here and its market share is increasing. What intrigues me most is that there’s been such a little deterioration of the market segment for lead and nickel-based chemistries. This just means more inventions or devices are manufactured using more batteries than ever before. As you look at the plethora of energy storage technologies, batteries is just one of many. The battery solution is mostly driven by its ability to have higher energy efficiency than other non-electrochemical technologies like pumped hydro or compressed air, as examples. Typically the drawbacks of electrochemistry devices are cost and life expectancy. However, we are seeing a huge decrease in the cost of lithium batteries while energy and power densities increase dramatically. This is an opportunity for market penetration to surge within the next few years. The analogy of two tsunamis approaching each other is akin to the collision between huge volumes of transportation and energy storage

sectors collide in the next three to five years. If current trends in the market continue, these will produce volumes of batteries that could change the global carbon footprint of mankind. Our colleagues in other battery market segments won’t have to worry about intrusion into their markets as these are all new product markets never seen in volume before.

Where do you see yourself in 2020? And the energy storage business? By 2020 my plans are to be doing consulting work or retired, fishing from an electric boat with my grandchildren! My perspective is the electrochemical energy storage business will have left the gate by this time frame on a journey with renewable energy generation to become commonplace in many countries around the world. Countries such as Australia and Germany who lead the charge for behind meter storage applications, and countries like China and US who lead the charge for utility side of the meter, will see a much clearer path to energy independence from fossil fuels by the end of this decade. New technology breakthroughs and system level improvements will create a new path to improve widespread renewable storage capabilities. A whole new market of installation, service, support, recycling and business practices will emerge. That said, oil and coal will be here for decades to come, but we must start the journey now to improve our environment for the generations that lie ahead of us!

Batteries International • Summer 2014 • 73

PROFILE: BYD China’s most successful automotive firm is also one of its leading battery firms. But is all well for this giant conglomerate? Are its plans to become the world’s largest electric vehicle producer by 2025 achievable? Jim Hartnett, Jeff Anderson, Karyn Caldwell and Tel Ganesan from the University of Michigan have analyzed the firm and its prospects.

The rise, rise and ambitious rise of BYD

hina’s richest man, Wang Chuan-Fu, has come a long way in a very short time. So has his company BYD which he set up — aged just 29 in 1995 — and which is reckoned to be the world’s biggest mobile phones manufacturer. But despite his enormous success, equally enormous challenges lie ahead for the automotive wing of his business empire. Wang enjoys a formidable international reputation. He is described by Charlie Munger, vice chairman of fund management giant Berkshire Hathaway as “something like Edison in solving technical problems, and something like Jack Welch, former chief executive of General Electric,

in getting done what he needs to do. I’ve never seen anything like it.” Notoriously frugal and a workaholic, Wang began the company by making cheaper versions of rechargeable electronics batteries from Japan. He shifted gears by acquiring the Shaanxi Quichuan Auto Company and set up the BYD Auto Company in 2003. BYD powered through the recession of 2008 by developing new business fields, increasing R&D of new rechargeable electronics batteries and promoting electric vehicle batteries, chemical energy stored-power stations and electric tools. In 2010, the company benefited from the recovery of the global mobile and

BYD: THE BASICS Chinese conglomerate BYD is an international giant with a market cap of some $7 billion and listed in Hong Kong. It has two major businesses. The ﬁrst is IT/portable electronics parts manufacturing and rechargeable electronics batteries. The second is vehicle manufacturing.

Rechargeable electronics batteries accounted for some 47% of company revenues in 2012. Conventional — internal combustion engine — vehicles accounted for 46% of sales. The remaining 7% was split between electric vehicles and their batteries and power generation equipment.

RECOMMENDATIONS • Continue multi-domestic approach • Focus expansion efforts on countries or regions that expected to have the highest sales of electric vehicles (Japan, the US, emerging economies) • Continue local R&D. BYD Los Angeles is a good start. • Expand production facilities outside of China • Focus on areas with low worker cost, such as Asia, or eastern Europe

74 • Batteries International • Summer 2014

• Continue focus on niche market of electric mass transportation • Tesla has an incredible head start, especially in the US and Europe, in the electric vehicle market for end consumers. However, BYD’s early focus on electric buses and their cooperation with China’s local governments and private taxi services in the US and Europe gives them an early mover advantage in this niche but important market

electric power equipment market and completed the first phase of the company’s solar energy manufacturing base. BYD’s compound annual growth rate for revenue from 2008-2012 was 13.5%, though margins thinned especially in 2012 and the return on equity fell below the cost of capital.

The context The rechargeable batteries industry — that’s the rechargeable electronics batteries and the electric vehicle batteries — accounts for 76% of the overall battery segment. Some analysts, such as Global Business Intelligence, believe the industry should grow from a $16.7 billion market in 2011 to $56.2 billion in 2020, driven largely by the need for lithium ion batteries for electric vehicles. GBI believes global electric vehicle demand will increase from 2.8 million units in 2012 to 19.8 million in 2020. The primary drivers behind electric vehicle adoption include high oil and gas prices and changes in the regulatory climate toward environmental conservation, including tighter tail pipe emissions standards. Reducing pollution is an increasingly critical issue. A recent World Health Organization report says this costs some 7 million early deaths per year. In addition, several countries, including the US, are offering government grants and subsidies to the rechargeable battery and electric vehicle industries to encourage R&D. For electric and hybrid vehicles, the primary driver, for adoption, is the cost of the lithium ion battery, particularly the cathode, whose cost has been difficult to reduce. While lithium itself is inexpensive, production of the batteries involves high manufacturing costs, with each battery involving hundreds of battery cells. Moreover, the industry is characterized by a lack of standardization.

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PROFILE: BYD BYD SWOT — strengths, weaknesses, opportunities, and threats — analysis Strengths

Weaknesses

Opportunities

Threats

Vertical integration (EV & EVB; components like cathodes, etc).

Recent profitability has been problematic (% net income fell from 9.6% in 2009 to 0.2% in 2012).

Rapidly expanding ICE automobile market in China

Volatile and rising prices of raw materials (lithium for cathode, cobalt for separator).

Revenue concentration risk in China (85% in 2012).

EV market in other countries

Strong R&D. Created breakthrough Lithium Iron-Phosphate (LiFePO4) battery. Dominant market position in rechargeable batteries for electronics Unique production model which leverages large numbers of inexpensive workers & custom jigs Unique education system for workers. Formal classes.

EV market in China

Lack of global distribution network that is only partially offset by joint ventures. Difficulty of cracking into European & North American markets. Education system primarily for engineering workers, not production employees.

To date, the primary producers of lithium ion batteries have been Korea, China, and Japan, but the industry is projected to grow in North America, particularly given motor manufacturer Tesla’s plans to create a massive ‘gigafactory’ able to produce as many lithium battery cells as the world produces as a whole today and its use of cheaper “cylindrical” batteries that can be used to produce a sub-$40,000 premium electric vehicle.

BYD’s global strategy While 85% of BYD’s 2012 revenue came from China, the company has begun to expand into foreign markets.

Rapid advances in technology and risk of obsolescence

Solar PV technology will require batteries. New economies w/o major legacy electric infrastructure (BRICs, Middle East) will demand this, according to Donna Zobel, CEO of Myron Zucker, major supplier of electric capacitors (in conversation with us in March 2014).

BYD has focused much of its growth in the electric vehicle market, despite the fact that EVs contribute only a small fraction of BYD’s revenues. BYD has approached growth outside of China primarily through joint ventures with local firms — and specifically by working in the public transportation space, building and supplying electric buses and taxis. This has leveraged the company’s cost advantages and helps pry open the door for the complex distributor network for passenger vehicles in these countries. Vertical integration: The Li and NiMH battery market has become in-

Rising Chinese worker wages can undermine key competitive advantage (“labor plus jigs = automation” at BYD). Competition from Tesla’s gigafactory for mass lithium battery production in US.

creasingly crowded and by vertically integrating into vehicle production BYD has positioned itself as one of the premier producers of electric vehicles worldwide and is the market leader in China. BYD also makes all battery components and electronic battery management systems. Cooperation with local firms: Since 2010 BYD has pursued opportunities

2% 6% 85%

PRC India

Country breakdown and by year (RMB m) ROE

Europe

3.8%

6.1%

9.6%

20.6%

2,523

5.4%

11.9%

46,312

1,385

3.0%

7.0%

44,381

0.2%

0.4%

Year

Revenue

Net income

NI%

2008

26,783

1,021

2009

39,469

3,794

2010

46,685

2011 2012

Other

Timeline of decisions positioning BYD in the global market 1995-2002

• • • •

BYD incorprated (1995) Branch offices established in Korea, Japan, US BYD listed on the Hong Kong Stock Exchange (2002) Becomes the Li-on battery supplier for Nokia (2002)

2003-2007

• Acquires Shaanxi Quichuan Auto Company and establishes BYD Auto Company LTD (2003) • Begins producing cars and winning Chinese auto awards (2006-2007)

2008-2010

• • • •

$231m equity stake taken in BYD by MidAmerican Energy Holdings (Warren Buffett) 9.9% of BYD Partnership with Volkswagen to “explore” in the area of hybrids and electric cars (2009) Acquired Sanxiang Bus Group (2009) JV contract with CGL to create the BYD Auto Finance Company (2010)

2011-2013

• • • • • •

JV/agreements with Daimler ($176m, R&D) and NetSol (IT) (both in 2011) JV with SMRT Corp to distribute electric vehicles long-range, eBUSes & e6 electric taxis in Singapore (2011) Partnership with Enerpoint Group to jointly develop the energy storage market in Italy (2012) Signed MoU with greentomatocars to develop London’s first fleet of all-electric minicabs (2012) Agreement with Bulmineral LTD (Bulgaria) to create a 50:50 JV to produce electric buses (2012) JV with BMW to produce Zinoro electric car for China market. Built in China. (2013)

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Batteries International • Summer 2014 • 75

PROFILE: BYD outside of the Chinese market primarily through acquisitions, contracts and joint ventures with foreign firms. This use of joint ventures and local partnerships taps local knowledge and makes sense in that vehicles themselves and even the battery component of these vehicles are regulated by rules that vary by region/country. The 2012 electric bus partnership with Bulmineral (Bulgaria) was a beachhead for BYD into Europe. Isbrand Ho, a key BYD director, said at the time: “The joint venture is a very important step for BYD and will ensure we are able to move forward with our strategy to introduce our electric vehicles and more green products across Europe.” Overall geographic expansion: Paul Lin, BYD’s corporate marketing man-

ager, has linked the time of the opening of BYD’s R&D center in Los Angeles to the company’s goal of being the largest electric vehicle maker in 2025. This global expansion is ambitious and, of course, risky. Focusing solely on China would also pose risk, yet there are several reasons why staying and focusing on growth in China might be the wisest choice for BYD. Low-cost production: Wang’s early signature accomplishment was redesigning the battery production process to use more labor but far less capital to make cheaper batteries. Jigs — inexpensive home-made tools to speed up the handwork — helped with productivity, formed the BYD slogan, “Labor plus jigs = automation.” The company’s strategy of “creative imitation” (relying on public technol-

ogy and modifying competitor designs to avoid their IP) also keeps costs low.

Perils There are dangers in BYD’s current strategy. Putting so much R&D into electric vehicles while BYD revenue today comes far more from rechargeable electronics batteries means that success depends on growth of the electric vehicle market (which has been overhyped in the past). BYD runs the risk of squandering its dominant position in rechargeable batteries as a whole. Further, BYD’s dependence on labor will be shown as wages rise in China. Analysts also criticize Wang’s running of BYD as being something of a one-man show that lacks management depth.

Arguments to continue to expand outside China or focus domestically SOLE CHINA FOCUS

EXPAND GLOBALLY

Pros

Cons

Pros

Cons

Market size

Largest single market in the world: Expected $1.5 billion in revenue from electric vehicles by 2017

Focus only on China will ignore the significant expected world growth, especially in North America and Europe for electric vehicles

Many countries currently have Each country has a relatively small customer base government subsidies for electronic vehicles making it more likely for there to be an expanded consumer base

Raw materials

Raw material advantage with >90% of rare earth reserves and 2nd most lithium in the world

Raw materials also found in Argentina, Chile and Bolivia

Raw materials for production can still be obtained in China regardless of final destination of vehicles

Production costs

Production in China provides a 25% cost advantage in labor/manufacturing costs

Rising worker wages will decrease this advantage

Production could continue to be in China with shipping globally Production could be moved to regions with cheaper labour

Infrastructure

BYD is the leading producer of electric car in China and has become to build infrastructure for electrical vehicle owners

Competition

BYD is the leading producer of electric cars in China, holding a dominant market position BYD holds the dominant position in rechargeable batteries. Chinese regulations require foreign firms to enter the country via joint ventures with local firms

78 • Batteries International • Summer 2014

Tesla has a significant head start in building charging infrastructure in US and Europe

BYD has created a unique niche in providing electric public transportation

High competition in US and parts of Europe due to inroads made by Tesla

BYD products, particularly the Qin EV the e6 EV and the F3DM hybrid, at half the price of the Prius, could sell well in Europe

There is current western belief that Chinese products are low quality making it difficult to enter western markets

BYD has successfully created Dealer networks are also a barrier to entry in developed multiple JVs in several markets countries

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BACK TO BASICS

Safe charging for the Li-ion battery The right way to charge lithium ion batteries is vital in terms of its battery life and safety, says Isidor Buchmann, founder of Cadex International and creator of the Batteries University. Tesla Motors has huge plans — the gigafactory — to make and use billion s of Li-ion cells by 2017. Both the Tesla Model S and Model X electric vehicles get their electrical energy from the 18650 cell, a format that also powers laptops and medical devices. The 18650 cell measures 18mm in diameter and is 65mm long. A cylindrical cell in a metallic case has advantages over the prismatic architecture and pouch pack by being more durable, but cylinders are heavy and have a low packaging density as a cluster. A battery pack for a Tesla vehicle deploys over 7,000 cells, and to get the desired voltage and amperage, the cells are connected in series and parallel. Figure 1 illustrates the 18650 cells. At 85kWh, the Tesla Model S has by far the largest battery in an electric car in terms of watt-hours; it also delivers the longest driving range between charges. In comparison, the Nissan Leaf comes with a 24kWh pack; the Ford Focus EV has 23kWh and the Chevy Volt 16kWh for corresponding shorter driving ranges. An 85kWh battery holds enough energy to provide a US household with electrical needs for almost three days. But batteries must be charged and this draws heavily on the grid. They are also expensive; an EV battery has the price tag of an economy car. Lithium ion batteries come in many

Figure 1: 18650 cell format used for lithium-ion cells. The cell measures 18mm in diameter and is 65mm long. Each battery pack for the Tesla cars use over 7000 of these cells connected in series and parallel.

variations and Tesla chose the less common nickel cobalt aluminum chemistry (NCA) for the S-Model. Made by Panasonic, the cell is rated at 3,100mAh, a specific energy that is slightly higher than most contenders.

Balancing the advantages Other advantages of the NCA are high specific power for exuberant acceleration and long life. The negatives are high cost and a lower safety margin than other Li-ion systems. Figure 2 outlines six of the most important characteristics of a battery in a spider web. NCA offers high specific energy and power, as well as a long life span. Increased manufacturing cost and

Specific energy

lower safety margin are negatives. Batteries for the electric powertrain need high loading and a long life, and the NMC is another popular Li-ion system. NMC stands for nickel-manganese-cobalt and is also used in e-bikes, power tools and military and medical devices. The cathode consists of onethird nickel, one-third manganese and one-third cobalt. This unique blend lowers the raw material cost due to reduced cobalt content. Figure 3 demonstrates the characteristics of the NMC. NMC has good overall performance and excels on specific energy. Typical applications are electric powertrains and portable devices. NMC has the lowest self-heating rate. Another popular Li-ion system for electric powertrains is lithium iron phosphate (LiFePO4). Its strengths lay in long life and superior safety, but the chemistry lacks specific energy. A further tradeoff is the lower nominal voltage of 3.3V/cell rather than the customary 3.6V/cell of other Li-ion systems. Figure 4 summarizes the attributes of Li-phosphate. Li-phosphate has excellent safety margins and a long life span but offers moderate specific energy and elevated self-discharge. Lithium-ion has much improved. In 1994, the capacity of an 18650 cell was 1,100mAh with a manufacturing cost of over $10. In 2001, the price dropped to $2 and the capacity rose to 1,900mAh. Today, high energy-dense 18650 cells deliver over 3,000mAh and the costs have gone down further. This, however, does not come without compromise. Newer cells are more delicate than older ones this can affect the cycle count. A Swiss manufacturer of upscale ebikes did a comparison of older and newer cells. They use the NMC 18650 cell by Panasonic and LG Chem. The early version had 2Ah and delivered 80% after the onboard battery man-

Specific energy

Cost

Specific power

Cost

Specific power

Cost

Specific power

Life span

Safety

Life span

Safety

Life span

Safety

Performance Figure 2: Snapshot of NCA spider web

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Performance Figure 3: Snapshot of NMC

Performance Figure 4: A typical LiFePO4 battery

Batteries International • Summer 2014 • 79

BACK TO BASICS agement systems (BMS) indicated 1000 cycles. Then came the 2.2Ah NMC and the capacity dropped to 70% after 1000 cycles. The 3Ah NMC used today drops to 60% after 1000 cycles. It should be noted that the end-capacity of newer cells is still higher that the older ones; the 3Ah cell retained 1.8Ah after dropping 60% whereas the 2Ah cell ended up with only 1.6Ah after its 20% drop. EV batteries must carry an eight-year warranty. To achieve this, a new battery may only charge to 80% and discharge to 30%. As the battery loses capacity with age, the BMS gradually increases the charging bandwidth to maintain a repeatable driving range. With the eventual full bandwidth in place, the battery will be stressed more, reflecting in a quicker drop in performance and reduction of driving range.

A delicate touch Cold temperature causes the performance of all batteries to drop. A bitter cold also makes charging more difficult, especially with Li-ion. Charging is more delicate that discharging; the ability to use a battery at low temperature does not automatically permit charging under these same conditions. Careless charging at low temperatures can inflict permanent damage to the battery. Li-ion should not be charged below 0°C (32°F). Some battery manufacturers permit charging down to -10°C (14°F) by reducing the charge current to a tenth of the battery rating, or 0.1C, a charge that would take 12-15 hours on an empty battery. Charging too fast at low temperatures could cause dendrite growth, but manufacturers say that battery safety should not be compromised. The battery stress is highest at 4.20V/ cell when the battery reaches full charge. Keeping a lower voltage also protects the battery during cold-temperature charging and some BMS limit the voltage and current accordingly. Many EV batteries include a heating blanket to protect the battery when charging at cold temperature. Energy to heat the blanket is available from the grid. EV owners want ultra-fast charging and technology is available to do so. Although convenient, fast-charging is harmful to the battery. If at all possible, avoid charge times that are less than 90 minutes. The onboard BMS keeps a record of stressful battery events and historical data can work against a warranty claim. This was the response of a large

80 • Batteries International • Summer 2014

Careless charging at low temperatures can inﬂict permanent damage to the battery. Li-ion should not be charged below 0°C but some battery manufacturers permit charging down to -10°C by reducing the charge current to a tenth of the battery rating European EV manufacturer when the question of ultra-fast charging came up at a recent EV battery convention in London. Safety is a further concern, but this applies to all batteries. A one-in-200,000 failure triggered the recall of almost six million lithiumion batteries in 2006. Sony, the manufacturer of these cells, said that on rare occasions microscopic metal particles may come into contact with other parts of the battery cell, leading to a short circuit than can cause venting with flame. Li-ion has improved and the failure rate has been reduced to one-in-10 million. This is reassuring, but the formula of one-in-10 million could cause 200 cells to fail in the batch of two billion that Tesla plans to consume. It is likely the failure rate has gone down further but caution is in place when storing tons of batteries in one place. Fires with battery manufacturers and in warehoused storing batteries are common. Little is known on premature aging when batteries are exposed to harsh environmental conditions. Internal shorts and rapid disassembly are of concern, an event that no safety circuit can stop once in progress. The fault occurs inside the cell and the battery must burn out. The Li-ion battery of Boeing 787 Dreamliner could have failed due to an electric short; the modified battery enclosed in a metal housing will provide a safeguard should a short recur. All batteries are subject to failure and there is also a reported incident where the battery circuit breaker of a Boeing 777 had to be pulled because of an overheating NiCd battery. In the 1970s, the National Transportation Safety Board several battery incidents per year involving the then new nickel-cadmium. A redesign eventually made NiCd safe; this will also happen to Li-ion. Transporting batteries by air remains a concern. There are regulations as to how much metallic (or equivalent) lithium can be included in an air shipment. Some content may go unregistered and the United Arab Emirates General Civil Aviation Authority found with a reasonable degree of certainty — although several in the industry still deny it — that the fire aboard the UPS 747-

400 freighter was caused by a lithium battery. The aircraft went down on September 2010 in the Dubai desert. New air cargo containers are being developed and tested with material that can withstand intense fires for up to four hours. The fire-resistant panels of these air cargo containers consist of fibre-reinforced plastic composite that snuffs fire by depriving it of oxygen. A fire is easier to put out in the cabin than in the cargo bay and since January 2008 people can no longer pack spare lithium batteries in checked baggage. Airlines allow them as carry-on where fire extinguishers are available.

Extinguishing laptop ﬁres A coffee pot served as an extinguishing device of a flaming laptop battery in one incident. Travellers are reminded of how many batteries can be carried on board in portable devices and as spares. This also includes primary lithium batteries and the maximum measured in grams are: • 2g for lithium batteries. Few consumer products use these primary batteries today. • 8g for a secondary lithium-ion. This amounts to a 100Wh battery (a laptop has about 60Wh) • 25g for all Li-ion combined. This amounts to 300Wh of Li-ion batteries. While Li-ion is being scrutinized for safety, other chemistries also exhibit problems. Nickel- and lead-based batteries cause fires too, and some are being recalled. Reasons for failure are defective separators resulting from aging, rough handling, excessive vibration and high-temperature. Examining 113 recorded incidents of transporting batteries by air in 19 years reveals that most failures occurred due to inappropriate packaging or handling. Damaged battery pack and electrical short due to careless packaging were the main culprits. Most incidents happened at airports or in cargo hubs. Problem batteries include primary lithium that contains lithium-metal, as well as lead, nickel and alkaline systems, and not just lithium-ion, as is perceived. Modern consumer products have very few failures involving Li-ion batteries today.

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BATTERY COMPANY VALUATIONS

Place your bets, please… The dynamics underpinning an industry critical to global development, growth and energy consumption can make battery companies look like attractive investment opportunities — if only it were that simple. Wyn Jenkins reports. The logic should be unassailable. As the world becomes ever more reliant upon all manner of gadgets and new technologies — and yet ever more preoccupied with sustainability and energy efficiency — there is an ever greater need for energy storage. Or in simpler language. Batteries.

But the power source for so many of the world’s now critical technologies has not kept up with innovation. Surely then, companies that can engineer breakthroughs in this space will rapidly grow and prosper? Surely these firms must be an investor’s dream? Whether you focus on

“Everything comes back to cost — more precisely, the total cost of ownership — in the end. Some of the other technologies are great but it is like the chicken and the egg. There are clearly opportunities and opportunities people can relate to” — Michael Lew, NAATBatt www.batteriesinternational.com

the electric car, smart phones, laptops or energy storage (solar panels and wind turbines are next to useless without a complementary battery technology, investors are rapidly learning) the logic is the same: the device is only as good as the battery that powers it or stores the energy it generates. There is rapid growth, a pressing need and the sector is ripe for new solutions. If only it were that simple. In fact, the world of batteries is almost never that simple. While the dynamics described here are all solid, trying to guess on which companies and which companies will prosper in the long term is another matter enBatteries International • Summer 2014 • 83

BATTERY COMPANY VALUATIONS “The main thing investors are looking for is the potential market and ultimate usage. The more mature companies might get a lower valuation and some of the newer companies a premium — some are seen as sexier and more likely to fundamentally shake up the market. — Michael Lew, NAATBatt tirely. Look no further than what has happened at A123 Systems (bankrupt), Exide Technologies (Chapter 11 since July 2013 and still being restructured), Valence Technology (Chapter 11 in July 2012 but emerged after being restructured last November) and Atraverda (administration although some of its former executives have taken elements of it forward) for proof of the problems and risks inherent in the sector — for established companies as much as start-ups. Yet each company that has experienced problems has had its own

unique challenges — it is tough to generalize about the sector in terms of either predicting its future winners or losers.

A fragmented offering Michael Lew, head of communications at the National Alliance for Advanced Technology Batteries, characterizes the sector as “lumpy” from an investment point of view. “In terms of the lead acid side, there are the very established companies such as Johnson Controls and EnerSys and it is a very fragmented offering after that,” he says.

• • • • • • • jbicorp.com •

“The main thing investors are looking for is the potential market and ultimate usage. The more mature companies might get a lower valuation and some of the newer companies a premium — some are seen as sexier and more likely to fundamentally shake up the market. “But it really varies by battery type and the specific end usage and potential of that chemistry. It is very difficult to generalize.” One of the few trends most commentators can agree on is that lead acid is coming back into vogue with investors. After a period when it was almost disregarded as being an old and dirty technology and other chemistries such as lithium ion and nickel metal hydride appeared to be set to rapidly gain market share, investors have become disillusioned with the slow progress with which that transition has occurred. Lew says investors now better understand the extent to which much comes down to the all-in cost when it

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84 • Batteries International • Summer 2014

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BATTERY COMPANY VALUATIONS comes to batteries. Lead acid remains the cost leader in many fields and has also started to shake-off its reputation as being problematic for the environment. It is now one of the most recycled materials on the planet. “Everything comes back to cost — more precisely, the total cost of ownership — in the end,” Lew says. “Some of the other technologies are great but it is like the chicken and the egg. There are clearly opportunities and opportunities people can relate to. “Everyone understands the importance of the electric car and its resulting potential. But ultimately lead acid technologies are still winning in many areas at the moment because they are often the incumbent technology and are also cheaper.” Neil Hawkes, commodity analyst at CRU International, agrees that lead acid companies are often seen as a safer bet by investors now. “Lead acid’s ‘old’ image is fading now and it is being seen in more positive way due to its relatively lower cost compared with competing battery technologies in these cashstrapped times (post credit crunch),” he says. “It is a proven and longestablished technology (compared to lithium ion’s safety issues) and its long-established green credentials (recycling of lead compared to lithium) are also positives.” He adds that this dynamic has been increasingly embraced by investors, reinforced as it is by some of the wider trends that are helping position lead acid as increasingly central to the batteries industry and, therefore, investors’ mindsets. Hawkes says that because lead acid is the preferred technology in mild stop-start hybrid vehicles, led by Europe, this is a plus for investors. Other issues around the high scrap cost prompting higher lead prices as smelters get squeezed is causing complications. “But nothing changes particularly quickly in the lead market,” he notes. Geoffrey May, director of Focus Consulting, also agrees that the upside is nowhere near as attractive for investors — it might be a safer option but the potential returns are small in comparison. “Lead acid is of greater interest at present because of new innovations in stop and start and micro-hybrid batteries as well as an overall increase in demand that seems to be sustainable in the medium and longer-term,” May www.batteriesinternational.com

says. “However, the industry is dominated by a small number of very large players that, Exide excepted, are large and relatively stable.” He groups Johnson Controls, East Penn, EnerSys and GS Yuasa together in this context. The problem is, he says, that the opportunities for consolidation are limited. “Some of the medium players such as Banner and FIAMM are family owned and seem to be determined to remain so. “Exide is an unknown at present and has to restructure more radically to survive and prosper. Having said that lead acid is of greater interest, it is nonetheless a low margin business, particularly for automotive where the lead cost dominates the factory gate price.” He agrees that the dynamics of the industry are slow to change but mentions that there has been some recent developments that have caught investors’ attention around the potential of lithium ion. “Exide is still there [in Chapter 11] a year on so that tells you something. For lithium ion in the HEV/EV field there has been some evolution. More manufacturers are offering EVs and HEVs (eg BMW) and Tesla is grabbing headlines with talk of a super-plant to build EV batteries,” he says. Not all investors are alike, however. Andrew Haughian, partner, Pan-

“Lead acid is nonetheless a low margin business, particularly for automotive where the lead cost dominates the factory gate price” — Geoff May, Focus Consulting gaea Ventures, a venture capital business that invests in start-up companies with disruptive breakthrough innovation in chemistry and material science, says this dynamic and sentiment towards lead acid depends on the type of investor. In his business, it

LET THE MARKETS DECIDE For a gauge of how stock market investors currently view battery stocks though, it is worth paying close attention to certain deals that some view as industry markers. Substantial listings involving battery companies do not come along very often so when they do investors watch with keen interest. Blue Solutions, an electric car battery manufacturer, completed its initial public offering (IPO) on Euronext last October. Its owner, Billionaire French businessman Vincent Bollore, listed around 10 percent of the business mainly, he said at the time, to raise awareness more than cash. He has said he wants to turn Blue Solutions from a €40-million operation to a company with annual sales of €1.5 billion by 2022. The company’s stock listed at the top end of the range at €14.50 a share, valuing the company at the time

at €530 million. It was 15 times oversubscribed. Since then, the stock’s value has risen consistently and dramatically peaking at €40 a share and maintaining a steady level of €35 to €38 a share.

Batteries International • Summer 2014 • 85

BATTERY COMPANY VALUATIONS COMPARE AND CONTRAST

If proof were needed that it is tough to generalize about the strength of batteries companies, consider the recent plight of two batteries firms that have enjoyed contrasting futures in the past 12 months: Exide Technologies and EnerSys . Exide Technologies’ US operations filed for Chapter 11 bankruptcy protection last year for the second time in 11 years. The investment community remains split about what the future might hold for troubled automotive battery maker as they await restructuring plans to be released. The company gave two specific reasons for its decision to file: the loss of a big contract with WalMart worth some $160 million annually and the forced suspension of production at a Vernon, California, lead recycling facility on environmental grounds, a move it says will cost wipe about $24 million off projected earnings. Commentators, however, say its troubles ran much deeper. They cite structural difficulties, poor management and a far too highly leveraged balance sheet, an issue compounded by poor sales on its European operation following a mild winter experienced in Europe a couple of years ago. A big part of the company’s business revolves around supplying replacement batteries in vehicles with the highest level of demand coming during bad winters. This particular mild winter led to a substantial drop in sales. That has caused it cash flow problems. The company faced $31 million in interest payments in August 2013 and the maturity of nearly $52 million in convertible notes in September. It listed assets of about $1.9 billion and debts of $1.1 billion in its

86 • Batteries International • Summer 2014

Chapter 11 petition. The bankruptcy only applies to its US operations; its global business arms are not directly affected. The fact is, almost 12 months on, the company has still not emerged suggesting its troubles are far from easy to solve. It will be interesting to see in what form the company re-emerges. In contrast, industrial battery producer EnerSys has enjoyed a very buoyant period, its stock price climbing steadily during what has been a 18 month period of strong performance and good news. The company has consistently beaten expectations and has produced results exceeding analysts’ forecasts. Over the last three years, its revenues jumped from $1.58 billion to $2.4 billion while proﬁts more than doubled to $150.3 million from $62.3 million. Unlike Exide, EnerSys is a low debt company and has a debt equity ratio of just 0.2. The stock trades at an attractive price earnings multiple of 22.4. The company has also been busy making acquisitions. Last year, it bought Purcell Systems, a designer, manufacturer and marketer of thermally managed electronic equipment and battery cabinet enclosures, for $115 million, a deal ﬁnanced using existing cash and credit facilities. This year, it acquired UTS Holdings and its subsidiaries Battery Power International and IE Technologies – suppliers of motive power and reserve power solutions within the Southeast Asian markets. The company said the deal built on its strategy of expansion into the fast growing markets of Asia. The company is making the cash and is happy to spend it, it seems.

“Venture capital investors are drawn to new breakthrough technologies such as entirely new battery chemistries that have the potential to displace incumbent technologies or open up new markets enabled by entirely new combinations of performance and cost” remains the start-ups selling the benefits of distributive chemistries and technologies that will catch the eye. “Venture capital investors are drawn to new breakthrough technologies such as entirely new battery chemistries that have the potential to displace incumbent technologies or open up new markets enabled by entirely new combinations of performance and cost,” he says. “While lead acid technology has seen somewhat of a technology renaissance in recent years there are many people working in this area and it is hard envision this not resulting to an eventual return to the unattractive normal of high capital expenditure and low margins.” One counter argument to this, however, made by some investors is that only the bigger incumbent players are likely to be able to afford the sort of investment required to design and manufacture a new battery technology capable of dominating a market. The likes of Johnson Controls, which is valued at over $23 billion, boasts over 100 scientists in research and development, increasing the company’s chances of making the nextbest discovery in battery science. Another player that falls into such a category is General Electric, which has a major stake in lithium batteries. The company has invested heavily in its research and development on batteries, and sees potential in many areas relating to battery power. Finally, there are firms such as Polypore International. Valued at nearly $2 billion, the company is still relatively small compared to its counterparts but its Celgard division, a maker of a separator material, has been tipped by Lew to achieve big things. www.batteriesinternational.com

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AUTOMOTIVE BATTERY HISTORY The history of electric vehicles may have been told and retold, but the same issues that bug the present electric car industry — capacity, range, safety and energy — have been concerns from the outset. Batteries International historian Kevin Desmond recalls the early years.

The early years: the rise and fall of the automotive battery and the electric car

The big date in the history of batteries for today’s makers of electric cars has little to do with cars in any shape or form that we would recognize them. But it was vital to the modern world that was eventually to emerge. It was September 13, 1838. The location: the River Neva, close to St Petersburg in Russia. The vehicle: a seven metre electric boat — the Elektrokhod — containing volunteers. The two protagonists in this historic event were from different worlds. The first in faraway London was John Daniell, an English chemist and inventor of the Daniell cell — a primary battery of 320 couples, containing plates of zinc and copper, 36 square inches each, and excited by a charge of sulphuric acid and sulphate of copper. The second was professor Moritz Jacobi, a German physicist and distinguished academic who was researching the early electric batteries, at the

Russian Academy of Science and mastermind behind the Elektrokhod. The result was a success. Or at least of sorts. The boat surged at a steady couple of knots. But it gave out nitrous fumes in such quantities that is was compared to the volumes of smoke seen from that latest motive en-

The boat surged at a steady couple of knots. But it gave out nitrous fumes in such quantities that is was compared to the volumes of smoke seen from that latest motive engine, the steam train. The experiment was discontinued www.batteriesinternational.com

gine, the steam train. The experiment was discontinued. But Jacobi didn’t give up. The following year, Jacobi’s new e-boat was equipped with a battery of 64 cells on a system recently developed by 28-year-old Welsh scientist, William Grove of Swansea. The Russian finance minister supplied 16kg of platimad up into 64 pairs of plates, num made measurin 36 square inches each. This measuring w one fifth the size of the battery was one used the previous year and was charged w with concentrated nitric and sulphuric acids. But the power of this motor reached onl 0.75hp and the boat, with only 14 passengers on board, reached a disappointing speed of 3 mph. Meanw Meanwhile, Robert Davidson, a manufact manufacturing chemist based in Aberdeen, Sc Scotland, had been developing his own battery to power his electric railway lo locomotive, the Galvani. This consisted of consisted of plates of iron and amalgamated zinc. These plates could be raised or lowered into the sulphuric acid in the wooden trough to give a primitive form of speed control by varying the effective internal resistance of the battery. The Galvani reached a heady 4mph on the Edin-

Batteries International • Summer 2014 • 91

AUTOMOTIVE BATTERY HISTORY

Gaston Planté in later life, but the then 24-year-old French physicist working at the Conservatoire des Arts et Métiers in Paris, invented the lead-acid battery in 1858

burgh to Glasgow line in 1842, In 1851 the action moved to the US. Perhaps the most sensational of the tests was that of Charles Page whose e-locomotive reached 19 mph on a test run near Washington. However, the US government was unimpressed by the way in which his batteries dissolved in clouds of choking acid fumes and refused to provide further funds. If only somebody would come up with a battery that could be recharged. The answer came in 1858. Gaston Planté, 24-year-old French physicist working at the Conservatoire des Arts et Métiers in Paris, invented the leadacid battery. His first model contained two sheets of lead, separated by rubber strips, rolled into a spiral, and immersed in a solution containing about 10% sulphuric acid. A year later, Planté developed a battery consisting of nine of the elements, housed in a protective box with the terminal connected in parallel. But it was Planté’s fellow countryman Camille Faure who in 1881 further improved the lead-acid battery’s storage capacity. He patented a method of coating lead plates with a paste of lead oxides, sulphuric acid

and water, which was then cured by being gently warmed in a humid atmosphere. The curing process caused the paste to change to a mixture of lead sulphates which adhered to the lead plate. During charging the cured paste was converted into electrochemically active material (the “active mass”) and gave a substantial increase in capacity compared with Planté’s battery.

Rechargeable magic Once the innovation of storage cells — now called secondary cells — was made possible by the reversible chemical reactions of its elements, the cells could be recharged and used again, and again. One of the very first to make used of Faure’s battery was the Paris inventor Gustave Trouvé who used these batteries to test out the world’s first electric tricycle. Yes, the battery was finally reaching the road, though not yet in four-wheeled form! Trouvé modified an English Coventry-Rotary tricycle so that its two smaller wheels were each driven by a little 5kg motor: a Faure battery of six accumulators gave the current;

While Simon Phillipart and Faure were over to England setting up an English company, Volckmar and Phillipart Jr abused the trust placed in them by trying to sell off certain patent rights without the approval of the directors. 92 • Batteries International • Summer 2014

the weight of the vehicle raised up to 160kg, and gave a speed of 12km/h. Almost at exactly the same time, in Paris, Nicolas Raffard and Edmond Julien powered their prototype streetcar with 225 Faure cells. Weighing over two tonnes, they were housed under the car’s seats. This cumbersome car had steerable front axles which allowed it to be run off the rails for short distances. The following year, additional tests were operated with the number of battery cells increased to 375. On one trip the car ran from the workshops to Versailles and back without the batteries being recharged. The age of the electric vehicle looked set to be close. Even before electric traction had proved itself, business treachery was interfering. While Simon Phillipart and Faure were over in England setting up an English company, Volckmar and Phillipart Jr abused the trust placed in them by trying to sell off certain patent rights without the approval of the directors.

Battery skulduggery While Simon Phillipart set up the English Faure Co with Sir William Thompson as consultant with manufacture to begin in Liverpool as of April 1882, Volckmar and Phillipart’s son, Gustave, joined forces with John Sellon of the Anglo-America Brush Company who had obtained provisional protection for a pasted type plate, differing from that of Camille Faure’s, in that

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AUTOMOTIVE BATTERY HISTORY Determined to store more electrical energy in the growing ﬂeets of tramcars, in 1888, Edmund Julien further improved the lead acid battery. By adding mercury to the antimony/lead alloy, he greatly reduced the internal resistance of the battery, lengthened its life and lifted its energy density from 12.6 watt-hours per kilo up to 23.8 watt/hours per kilo. This would enable an EV to travel at 10 mph for 40-50 miles without re-charging. the active material was pasted into a grid instead of being held by a felt wrapping to the surface of a plain roughed lead plate. The weakness of Faure’s design had been that the red lead applied to the lead plates was so friable that with vibration would lose its grip, fall to the bottom of the battery container, electrically shorting the positive and negative plates. John Sellon also acquired from Joseph, the English light bulb inventor, a method of keying the active material by punching holes in the plates, so providing a battery purchase for the red lead. Their Electrical Power Storage Company was formed in March 1882 to manufacture the Swan-Sellon-Volckmar accumulator.

“Discharged employees” At first, the British Faure Company tried to discredit EPS claiming infringement of patent rights developed by “discharged employees”. The fledgling battery industry already seemed to be in trouble before it had even got underway. In May 1882, the Faure Company abandoned its threat of litigation and patent rights were given by the Faure Company to the EPS Company through a mutual exchange of shares. By 1883 no fewer than 11 concerns were engaged in the manufacture of Faure accumulators. These ranged from “La Force et La Lumière” of Paris; Faure Electric Accumulator Company of London; Force & Power Co of New York, USA; the French Metropolitan Electric Carriage Company; EPS of London; India and Oriental Electric Power Storage Company — and even the Australasian Electric Light and Power Storage Company Following litigation in the USA, the two American companies combined into the Electric Accumulator Company of New York. In June 1883, Simon Phillipart was placed under arrest in Paris for allegedly contravening the French Company’s Act in matters appertaining to the French EPS Company. Things had

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gone wrong when Phillipart had refused to prosecute EPS for piracy. By 1884 Phillipart was bankrupt — showing even from the earliest days of the battery business that the energy storage industry has had far more failures than other types of business. This followed the failure of “Force et Lumière”, and the French EPS Company and the French Metropolitan Carriage Company. With the closure of the Faure Accumulator Company, three ex-employees joined the British EPS staff. Antony Reckenzaun who became chief engineer, was to play as vital a pioneering role in electric traction in England, as Trouvé in France.

Commercialization advances The EPS Company became the first real concern to manufacture batteries on a commercial scale, and with the acquired Faure rights, held a monopoly until later manufacturers made a success of the Planté plates. The EPS works at Lollar Wharf in East London began serious business from 1882 by supplying lighting plants for businesses and private residences. Batteries were offered in 1, 2 and 5 electrical horsepower sizes, later known as L15, L31, and L59 types. In 1882/3 EPS provided accumulators for both an e-tricycle and a retrofitted tugboat using 45 Planté accumulators, weighing 2,700lb, modified

Batteries International • Summer 2014 • 93

AUTOMOTIVE BATTER BATTERY RY H HISTORY ISTORY Thomas Edison also began looking for a way to make ba batteries lighter, more reliable, and at least three tim times more powerful so that they could become the basis of a successful electric car. Edison and his team at Menlo Park conducted tests o of all sorts of metals and other materials, lookin looking for those that would work best in batter batteries. The same year, 1888, when the 68ft Viscountess Bury, the world’s largest electr electric vehicle, took to the w waters of the River Tham Thames, a staggering 200 EPS lead-acid cells of 1 145 Ah capacity gave ene energy to her 12hp motor tor. But was lead-acid the b couple? Extremebest ly heavy, the acid corr roded the lead inside the battery, shortening the useful life of th battery. the by Selon and Volckmar to total 96 l and d supply l power ffor six h volts hours. And a retro-fitted tramcar with two tonnes of EPS cells, arranged on roller-mounted trays underneath the seats for ease of removal. In 1886 when the Volta became the first electric launch to cross the English Channel, her energy came from a 70-cell accumulator powering a 4hp motor for a speed of 8 mph. By the end of 1887 some 15 launches, with EPS batteries, had been supplied, including a launch which must have brought a decisive touch of modernity when it first made its appearance among the gondolas on the ancient canals of Venice. In those days the storage batteries were derogatively nicknamed ‘pickled amperes’! Determined to store more electrical energy in the growing fleets of tramcars, in 1888, Edmund Julien further improved the lead acid battery. By adding mercury to the antimony/lead alloy, he greatly reduced the internal resistance of the battery, lengthened its life and lifted its energy density from 12.6 watt-hours per kilo up to 23.8 watt/hours per kilo. This would enable an EV to travel at 10 mph for 40-50 miles without re-charging.

94 • Batteries International • Summer 2014

Nickel-cadmium joins the fray Nickel-cadmiu Swedish inventor Waldemar Jungner took different approach. In 1899, k a d ff from his experiments with nickelcadmium, Jungner experimented with substituting iron for the cadmium in varying proportions, including 100% iron. Jungner had already discovered that the main disadvantage of the nickel– cadmium chemistry was cost, but due to the lower efficiency of the charging reaction and more pronounced formation of hydrogen (gassing), the nickel– iron technology was found wanting and abandoned. Jungner then built batteries of the silver-cadmium type to supply the motive power for motor cars, and these batteries were tested in Stockholm in 1900 with satisfactory results. After each charge it was possible to drive 140km-150km. However, the silver was considered too expensive in this connection and cadmium too rare. Meanwhile, in 1891, inventor Thomas Edison also began looking for a way to make batteries lighter, more reliable, and at least three times more powerful so that they could become the basis of a successful electric car. Edison and his team at Menlo Park conducted tests of all sorts of metals

and other materials, looking for those that would work best in batteries. The tests numbered in the thousands and lasted until 1903, when he finally declared his battery finished. The battery used potassium hydroxide, which reacted with the battery’s iron and nickel electrodes to create a battery with a strong output that was reliable and rechargeable. Having tested his battery in a car two years before, the Wizard of Menlo Park now fitted one into a boat he called the Reliant. He tested it out during cruises up and down the Caloosahatchee River at Fort Myers, Florida — where his winter home was fronted. Soon after, William Vanderbilt, the business tycoon, ordered an electric launch, the Alva, from Charles Seabury’s yard. 30ft long with a draft of 2ft the Alva was capable of seating between 25 to 30 people. True to character, Edison announced the new battery with great fanfare and made bold claims about its performance. Manufacturers and users of electric vehicles, which now included many urban delivery and transport trucks, began buying them. Then stories about battery failures started coming out. Many of the batteries began to leak, and others lost much of their power after a short while. The new nickelgraphite conductors were failing. Engineers who tested the batteries found that while lightweight, the new alkaline battery did not significantly outperform an ordinary lead-acid battery. Edison shut down the factory immediately and between 1905 and 1908, the whole battery was redesigned. Edison came up with a new design, and although the new battery used more expensive materials, it had better performance and more power. By 1910, battery production was again underway at a new factory near the West Orange, New Jersey laboratory. Thereafter the Edison Battery went

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AUTOMOTIVE BATTERY HISTORY

1912 was the high point of EV acceptance in America with some 20 companies making them, and over 34,000 registered electrics — two-thirds of them passenger cars — in the US alone. About 6,000 electric cars and trucks were being manufactured annually.

When in 1899, Camille Jenatzy drove his rocket-shaped Jamais Contente to a top speed of 105.88km/h (65.79 mph), his lead-acid Fulmen batteries (80 elements) accounted for almost half of the total weight of the 1.5 tonne projectile.

back into use as the energy source for electric vehicles such as the Detroit Electric and Baker Electric. Customers were given an option: a rechargeable lead-acid battery, or for an additional $600— about $8,000 in today’s money — an Edison nickel-iron battery was available. The cars were advertised as reliably getting 80 miles (130km) between battery recharging, while in one test a Detroit Electric ran 211.3 miles on a single charge. Top speed was only about 20 mph — but this was considered adequate for driving within city or town limits at the time.

Exide, the excellent oxide There were other options available: The Electric Storage Battery Company, found by Warren W Gibbs, produced a chloride accumulator, based on the patents of a French émigré inventor Clément Payen. As demand increased, in 1900, the ESBC developed a lighter product of greater capacity they trade-named Exide, short for “Excellent Oxide.” In 1901, the Columbia Mark III Electric Vehicle carried a Exide battery, consisting of 44 chloride cells, with

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a capacity of 75 ampère-hours at a t three-hour rate, its makers claiming a mileage of 35 miles over ordinary r roads. To overcome the limited operatin range of electric vehicles, and the ing l lack of recharging infrastructure, an e exchangeable battery service was first p proposed as early as 1896. Just over a century later the same idea — enc countering the same problems of price a range — achieved prominence for and a while. The concept was first put into practice by Hartford Electric Light Company through the GeVeCo battery service and initially available for electric trucks. The vehicle owner bought the vehicle from General Vehicle Company (GVC, a subsidiary of General Elecd the tric) without a battery and tford electricity came from Hartford angeElectric through an exchangeable battery. The owner paid a variable per-mile charge and over a monthly service fee to cover maintenance and storagee of the truck. Both vehicles and batteries were modified to facilitate a fast battery exchange. ded The service was provided nd between 1910 to 1924 and red during that period covered es. more than 6 million miles. ar Beginning in 1917 a similar ersuccessful service was operrs ated in Chicago for owners ic of Milburn Light Electric y cars who also could buy the vehicle without the bat-teries. Higher speed electricc g vehicles wsere also being examined. When in 1899,, Camille Jenatzy drove his rocket-shaped Jamais Contente to a top speed of 105.88km/h (66 mph), his lead-acid Fulmen batteries (80 elements) accounted for almost half of the total weight of the 1.5 tonne projectile.

They consisted of honeycomb lead plates — essentially a forerunner of the idea that persists today in creating a greater surface area for the electrolyte to react — filled with lead oxide which were inserted in perforated celluloid envelopes. In terms of range, that same year, two American engineers covered 100 miles on a single charge. In 1909, Emil Gruenfeldt of the Baker Motor Vehicle Company covered 161 miles on a single charge in his Baker Electric Roadster. 1912 could well be the high point of EV acceptance in America with a host of companies making them, and over 34,000 registered electrics — twothirds of them passenger cars — in the US alone. About 6,000 electric cars and trucks were being manufactured annually.

Batteries International • Summer 2014 • 95

AUTOMOTIVE BATTERY HISTORY

Steinmetz submitted a bill for $10,000 to Henry Ford who — indignant — asked for an itemized invoice. Steinmetz sent it back. ... Making chalk mark $1, ... Knowing where to place it, $9,999. Electric car-makers organized and held their own auto show. The American Automobile Association issued road maps showing where electric vehicles could be recharged and serviced. Studebaker electric cars were sold until the sales peak reached in 1912; Ryker, Morrison, Anthony Electric, and the Electric Carriage and Wagon Company of Philadelphia, all continued to sell their cars until 1914. But electric cars were limited to urban use by their slow speed (no more than 15mph–20 mph) and also by their heavy and maintenance demanding low range batteries (30–40 miles). Rapid-refuel petrol cars were now able to travel farther and faster than equivalent electrics. Ironically, it was the power source of the electric car, the battery, led to its demise through Charles Kettering’s invention in 1912 of the electric starter motor, making petrol cars easier to operate. That year’s Cadillac became the first battery-started car with an internal combustion engine, produced with the Electric Storage Battery Company and Kettering. In 1915, Harry Dey invented a revolutionary concept in electric auto design which both replaced differential gearing and permitted the motor to act as a generator to help recharge the battery when the car went downhill. Dey’s associate, Charles Steinmetz, the foremost car expert of the day — and also the patent holder for the first three-phase alternating current generator — endorsed the the design and predicted it would permit electrics to overtake gasoline-powered cars. Steinmetz was right. Or more or less so. But just a century wrong in his prediction. Seven years later, Steinmetz demonstrated a short-haul electric truck, which could carry a 1,500 lb load and could climb a two-block long 14.5 degree hill in 51 seconds. He also designed an electric car that could travel 200 miles on one charge, attain speeds of up to 40 mph, weighed 2,000 lb. and could sell for less than $1,000. Steinmetz had a long relationship with the motor industry. Legend has it, when retained by Henry Ford, af-

96 • Batteries International • Summer 2014

ter a complex system had gone down and which no one could fix, Steinmetz examined the broken system, found the malfunctioning part, and marked it with a piece of chalk. He submitted a bill for $10,000. Ford, upset over the bill asked for an itemized invoice. Steinmetz sent it back: ...making chalk mark $1 ... knowing where to place it $9,999. Steinmetz died in 1923 and his company, the Steinmetz Motor Car Corp, soon folded, due to poor management, without ever producing the car and only a few trucks. Despite such valiant efforts to fight back, by the 1920s electric vehicles had come to mean ‘trucks’ — fork-lift trucks, short distance delivery vehicles, golf-carts ... and all with leadacid batteries.

End of an era The age of the electric automotive car had come and gone. Within a decade and a half of Kettering’s invention, the internal combustion engine had taken over as the de facto standard for cars. The 50 or so electric car makers in the US quickly closed their doors although a couple lasted into the early 1940s. The last fillip to the electric car came with the Second World War. With petrol even being rationed in the US, older electric vehicles were re-serviced and put to work once more. It was a short-lived reprise. In Europe the scarcity of petrol provoked a great deal of engineering ingenuity, most particularly after the German occupation of France in 1940. Perhaps most interesting was the aluminium CGE-Tudor as designed by Jean Grégoire, with a normal range of 90km per charge. Production of the Grégoire was authorized by the Germans on condition that the majority were exported to Germany.

Though two cars a week were made for nearly two years, so far as is known none left France. One was offered to the director of a biscuit factory in exchange for his weight in biscuits. On September 11, 1942 Gregoire in a special CGE Tudor covered 155 miles at 26mph on the Paris-Tours road, without re-charging. It was only in the early 1940s that France’s Henri Andre resulted in a commercially viable, truly silver zinc rechargeable battery, the use of cellophane as a separator to retard the migration of silver species from the positive to the negative electrodes, which caused the early failure of previous versions of the system. Post-war oil rationing in Japan led carmaker Tama, later the Prince Motor Company and which finally merged into Nissan, to release in 1966, a 4.5hp electric car with a 40V lead acid battery. But for the next 50 years — with only a few brave pioneers in between who never managed to achieve the massadoption that they sought — electric vehicles were considered as belonging to the wild west of the car business. And, oddly, when an EV revival resurged in the late 1990s and early 2000s, the range of most vehicles was less than the heavyweight lead acid batteries that had been carried so succesfully a century beforehand.

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BATTERY COMPANY VALUATIONS

“While lead acid technology has seen somewhat of a technology renaissance in recent years there are many people working in this area and it is hard envision this not resulting to an eventual return to the unattractive normal of high capital expenditure and low margins” — Andrew Haughian, Pangaea Ventures

become a major issue in pushing up lead prices paid by lead acid battery makers,” says Hawkes. “They increasingly cannot fully absorb these and have to pass on some of the higher cost of making a lead acid battery (due to higher cost of lead) to their customers (vehicle makers, telecom companies etc). “The varying ability of each lead acid battery maker to control more of its own lead needs, through a combination of owning its own lead smelters, tolling through other smelters — and having their own battery collection network, may become a key factor in valuing each company.” Haughian at Pangaea Ventures says considerations around supply chains and the availability of materials are always factored into valuations. But the potential of the end markets remains the greater focus for investors. “I believe in efficient markets and as with any industry, valuations are based on underlying growth and profitably assumptions,” he says. “Supply chain specific considerations are built into underlying valuation models and raw material volatility is absolutely a factor that would impact profitability assumptions that are used. “Any technology or company that is seen to be either the pioneer and/ or dominant player in a particular segment will absolutely be rewarded with a premium valuation. Rightfully so as in this industry there are significant barriers to entry created by IP and setting technology standards and these advantages are usually captured by the first mover.”

Choose high or low Interlinking chains Moving away from which chemistry may or may not win through in the future, investors must also consider the many interconnected factors that determine the long-term potential and profitability of battery companies. And some of these issues are unique to the battery industry. Firstly, although it is natural for most investors to focus on the end user of a product and the size, growth potential and competition within that market, investors in battery companies must also look the other way. Almost all battery manufacturers have exposure to supply chains of various shapes and sizes, which can both benefit and or hinder the risk profile of companies. Lew says investors have become increasingly aware of these risks in re88 • Batteries International • Summer 2014

cent years. “In the past, all that investors would consider was the end market and the opportunities there. These days, they are more aware of volatility in the supply chain. Lithium has risks associated with the mining side, for example. “This is defiantly more of a factor now.” Hawkes at CRU says that this dynamic can be traced right back to the availability and pricing of the raw materials. Some chemistries, such as nickel-metal hydride, are reliant on relatively rare minerals such as lanthanum, causing a supply chain risk. In the case of lead, the robustness of the problem but the price of lead in the secondary markets is another matter again. “The higher cost of scrap, caused by more smelters fighting for scrap, has

But just as different types of investor will look for different things within the same company, different investors will also consider different parts of the value chain itself. May at Focus Consulting says he believes the suppliers to battery companies can represent a better investment than battery companies themselves. “I believe that component and materials suppliers, particularly companies that make separators, electrode materials and electrolyte and especially focused on lithium ion chemistries, are more attractive than the battery sector itself,” he says. “The margins are higher and new innovations easier to value. There are also opportunities in the lead acid area for additives and new electrode structures.” In contrast, Haughian says venture capital money, seeking much higher www.batteriesinternational.com

BATTERY COMPANY VALUATIONS returns, will always head towards the other end of the chain. “Most venture capital investors prefer investing in opportunities further up the value chain where there is the potential to use product differentiation as a platform for identifying early adopter markets that speed time to market and establish credibility while at the same time setting the stage for eventual penetration into the largest markets,” he says. “The potential for government funding to support the early days is also much greater the further you are to the top. Further down the supply chain, project equity investors combined with strategic investors that can play their part in terms of materials supply chain, manufacturing capital project delivery are the most likely combination.”

“The varying ability of each lead acid battery maker to control more of its own lead needs, through a combination of owning its own lead smelters, tolling through other smelters — and having their own battery collection network, may become a key factor in valuing each company” — Neil Hawkes, CRU been helped by these failures. “There was always going to be a flush out and now that has happened I think we are at an inflection point and confidence among investors in the sector is improving,” he says.

“Many believe that those companies that have now survived for a good few years have done so for a reason. And more companies are now raising capital, which itself is a reflection of this confidence.”

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Lumpy markets

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May agrees with Lew’s characterization of the batteries market itself as “lumpy”. Each sector has to be analysed individually taking its respective challenges and market dynamics into account. The lithium ion business is in two parts, he says, consumer lithium ion batteries, which are established and supplied from China, Korea and Japan, and lithium ion batteries, which are used for HEVs and EVs. “This sector is oversupplied and undeveloped,” he says. “The consumer side is very competitive. The HEV and EV side needs to shake out before the values of any particular businesses are clear.” In terms of nickel-metal hydride, the consumer side is dominated by China and very competitive, May says, while the products for HEVs are more or less exclusively PEVE, the joint venture between Toyota and Panasonic) and Sanyo/Panasonic. “This is an important sector as most HEVs use NiMH today but it is potentially threatened by lithium ion and is unlikely to change ownership,” he says. There are also other outside runners, he says. “There are opportunities in new battery chemistries for applications such as utility load levelling or power conditioning but these are riskier bets both on technology and because this is not yet an established market.” For all the vagaries and recent failures by companies in this sector, however, Lew says sentiment is improving towards batteries stocks at the moment. In part, he says, the sector has

yielding large economies of scale important to automotive application.

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CONFERENCE IN PRINT

Welcome to a special section of our magazine, called Conference in Print. Our aim is a simple one. We want to offer you the readers a section where you can highlight your products, technology and skills to our broader audience — rather like going to a conference or an exhibition without the inconvenience of all the travel! We’re putting no restrictions on what you’d like to showcase — this is your section not ours — but hope that this will prove an invaluable and cost-effective way to reach our audience of subscribers and readers.

CONFERENCE IN PRINT: LI ION DOUBLE CELLS A new type of a double-cell lithium ion battery using a conﬁguration different from the conventional aluminium-laminated battery has been developed and evaluated through its charge and discharge tests. The outline of the battery’s basic construction as well as the evaluation of its charge and discharge performance is explained by Osaka-Electro Communication University’s Shouji Usuda, a visiting fellow at the institution and Isao Iyoda, a professor at the university.

Lithium — doubling up cells, doubles up capacity Figure 1: Process to produce the traditional laminate battery cell

Electrode terminals

(a) Positive and negative electrode sheets

(b) Electrode unit made by the winding-around method

(d) A completed battery cell

Conﬁguration and production of a double-cell battery

Figure 2: Double-cell battery conﬁguration Electrode terminals

Electrode units Pouch cell Doubled battery capacity Terminal voltage, 4.2 V (a) Connected in parallel

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Lithium-ion batteries typically come in three forms: laminated, cylindrical, and coin-shaped. To produce a laminated battery, one makes an electrode unit by winding positive and negative electrode sheets around a separator, made of high-polymer film and then sets the electrode unit in the aluminiumlaminate pouch cell. In the next step the pouch edges are sealed all but an electrolyte intake by the thermo-compression bonding method using a laminator. One places the pouch cell in the vacuum glove box and inject electrolyte into the pouch. Now perfectly seal the pouch in the vacuum glove box to complete it as a battery. Figure 1 shows part of the batterymaking process mentioned above in our laboratory. Using a charge and discharge evaluation system, subject the completed battery to an initial charge test and cyclic charge-discharge tests.

Electrode terminals

Electrode units Pouch cell Same battery capacity Doubled terminal voltage, 8.4 V (b) Connected in series

To make a double-cell lithium-ion battery one puts two electrode units set in a pouch cell. The battery can be used with the terminals of the electrode units connected either in parallel or in series. Figure 2 shows this. A double-cell battery brings immediate advantages: • In parallel, the battery’s capacity doubles over that of a single-cell battery. • With electrode units connected in series, the battery’s terminal voltage doubles over that of a single-cell battery. Batteries International • Summer 2014 • 99

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CONFERENCE IN PRINT: LI ION DOUBLE CELLS Figure 3: Two types of double-cell battery cells Electrode terminals

Cell A

Cell B

2 electrode units

(a) Two electrode units set in a pouch cell

(b) Parallel

Figure 4: Charge & discharge characteristics of individual battery cells

(a) Charge characteristics

• The double-cell battery, made of two electrode units, requires a smaller number of batteries than the batteries, each having a single electrode unit, linked together in parallel or series. • The double-cell version, having two electrode units that are simultaneously sealed in a pouch, reduces the number of production processes, such as electrolyte injection and laminate sealing, compared with the manufacture of batteries having a single electrode unit. Figure 3 shows the doublecell lithium-ion battery made experimentally in our laboratory. After setting two electrode units in one pouch, this constituent battery was completed as a double-cell battery in the same manner as in the case of a single electrode unit shown in Figure 1. Two pairs of (four) electrode terminals of the completed doublecell battery are wired so they may be connected in parallel or series. The battery cell with electrode terminals connected in parallel will be called the ‘parallel double-cell battery’ and the www.batteriesinternational.com

Figure 5: Discharge characteristics of the parallel double-cell batterycharacteristics of individual battery cells

(b) Disharge characteristics

Figure 6: The trial making of a battery stack

(a) Battery container

battery cell with the terminals linked in series will be identified as the ‘series double-cell battery’.

Evaluation of double-cell battery charge and discharge tests The charge and discharge performance of the developed double-cell battery were evaluated. Figure 4 shows the charge and discharge characteristics of the respective battery cells (tentatively called cell ‘A’ and cell ‘B’) before their two electrode units were connected in

(b) Measuring a terminal voltage

parallel or in series. The charge and discharge characteristics of the two battery cells set in the same pouch were identical and nearly overlapped each other without dispersion. Such characteristics are called the ‘twin characteristics’. The internal resistance values of cell ‘A’ and Cell B are almost the same coming in somewhere between 92 mΩ and 96 mΩ. Figure 5 shows the discharge characteristics of the parallel doublecell battery with these cells’ electrode terminals connected in parallel. The obtained discharge capacity almost Batteries International • Summer 2014 • 101

CONFERENCE IN PRINT: LI ION DOUBLE CELLS Figure 7: Charge and discharge characteristics of the battery stack

(a) Charge characteristics

doubled that of the individual electrode unit. Two series double-cell batteries were made experimentally and set in a battery container designed for a 3D printer to make a battery stack where the batteries are connected in series (Figure 6). Figure 7 shows the charge and discharge characteristics of the battery stack. The two double-cell batteries connected in series made it possible to charge them at a relatively

104 • Batteries International • Summer 2014

Shouji Usuda

(b) Disharge characteristics

high voltage, and a terminal voltage of about 17V was obtained when charged to the full.

Where next? Since the double-cell lithium-ion battery leads to increases in battery capacity and terminal voltage, it can be applied to control apparatuses, such as a DC-AC inverter, and electric power equipment. Further application possibilities for the new double-cell battery are expected.

Shouji Usuda is a committee member of the Japanese Lithium Ion Society for Academic Study, visiting fellow at Osaka-Electro Communication University and the author of “The introduction of circuit design using lithium-ion battery” (2012). Some of his latest ﬁndings can be found in April’s OHM “Fabrication research for lithium-ion battery”.

www.batteriesinternational.com

FORTHCOMING EVENTS

Portland, Oregon, USA, home to the EV Roadmap conference, July 24-25

EV Roadmap conference Portland, Oregon, USA July 24-25 The EV Roadmap conference has established itself as the Pacific Northwest’s premier electric vehicle gathering and one of the leading electric vehicle conferences in the United States. EV Roadmap brings together Oregon’s early adopters with national and international experts to inform transportation electrification efforts across the nation. EV Roadmap 7 is produced by Portland State University, Portland General Electric, and Drive Oregon. Widespread electric vehicle adoption requires a supportive ecosystem of stakeholders, from utilities and local governments to vehicle OEMs, charging providers, interest groups, and drivers. This collaborative approach - and the technology already embedded in electric vehicles - places electric vehicles at the cutting edge of exciting new developments in connected cars,

BATTERY POWER 2014

Battery Power 2014 is an international conference highlighting the latest developments impacting mobile and portable battery systems for consumer and commercial products, including power tools, smart phones, tablets, laptops and medical devices. Conference topics will include new battery designs, improving power management, predicting battery life, regulations and standards, safety and transportation, battery authentication, charging technology, emerging chemistries and market trends.

www.batteriesinternational.com

intelligent transportation systems, and autonomous vehicles. EV Roadmap 7 will explore questions such as: Contact Kaylee Wolf kaylee@evroadmapconference.com Tel: +1 503 2262377

EPE’14-ECCE Europe Lappeenranta, Finland August 26-28 We are proud to announce that the 16th Conference on Power Electronics and Applications, EPE’14-ECCE Europe, will discover the Nordic latitudes and visit Lappeenranta, the home city of Lappeenranta University of Technology (LUT), on the border between the EU and Russia, and surrounded by the magnificent nature of the Lake Saimaa. Hosted by Lappeenranta University of Technology, the EPE’14-ECCE Europe conference will take place in

a peaceful Nordic late-summer atmosphere. We hope to welcome a truly international academic and industrial audience, and invite you into the heart of Finnish expertise in Power Electronics. LUT is the largest energy research and education organisation in Finland. At LUT, we know that no one technology alone can solve the crisis of global warming but a combination of technologies and actions based on life cycle thinking and sustainable development is required. Our core activities focus on research and development of advanced clean energy systems. Here, expertise in power electronics is our core competence and the mainstay of success for achieving excellence. Contact Philippe Hamacher, EPE Association c/o VUB – IrW – ETEC, Pleinlaan 2, B-1050 Brussels, Belgium Tel: +32 2 629 28 00, Fax: +32 2 629 36 20 phamache@vub.ac.be, www.epe2014.com

Denver, Colorado, USA • August 6-7

Join hundreds of OEM design engineers and system engineers involved in battery powered products and systems and discover what is driving innovation, capabilities and features, application trends and performance improvements. The interactive exhibit hall will feature the latest battery technology and power management capabilities. Network with battery manufacturers, charger manufacturers, IC companies, materials and manufacturing equipment providers,

testing services and systems providers, as well as an array of component and sub-system providers. The pre-conference workshops provide an in-depth education experience, providing valuable information for both the new and seasoned engineer. Contact Marsha Grillo marshag@webcomcommunications.com Robert Schaudt roberts@webcomcommunications.com

Batteries International • Summer 2014 • 105

FORTHCOMING EVENTS Infobatt 2014 Niagara Falls, Canada September 14-16

6th China (Shanghai) International Battery Industry Fair (CNIBF)

ITEC Asia-Paciﬁc 2014 IEEE Transportation Electriﬁcation Conference & Expo

Shanghai, China August 26-28

Beijing, China August 31-September 3

CNIBF 2014 is Co-located with The 5th China (Shanghai) International Super Capacitor Industry Fair which is the leading ultra-capacitor expo in China. CNIBF 2014 will attract 500 exhibitors networking with the vendors and professionals in the 30,000m3 exhibition hall. CNIBF usually attracts 12,000 attendees from East Asia, Europe and North America at each version.

This conference and expo consists of 10 tracks identifying various major industry themes. Energy storage systems are the key components of electric transportation systems. Lithium ion technology has been substantially improved over the past few decades, and is becoming the standard for personal electric transportation. Other technologies are being considered for higher power and mass transit systems.

Contact Amy Xiao amy@zhenweiexpo.com cnibf@zhenweiexpo.com Tel: +86-20-8395 3208 Fax: +86-20-8395 3200

63rd Annual Meeting of the International Society of Electrochemistry Prague, Czech Republic August 19-24 Topic: Electrochemistry for Advanced Materials, Technologies and Instrumentation Contact events@ise-online.org

106 • Batteries International • Summer 2014

Track 1: Power electronics and electric motor Drivers The technologies include the theory, analysis, design, and applications of power electronics and motor drives. Track 2: Electric machines and actuators Track 3: Battery and battery management Track 4: Electric, hybrid electric, and plug-in hybrid electric vehicle system and architecture Track 5: Smart grid, V2G and electric railway Track 6: Electrification of heavy-duty and off-road vehicles

Track 7: Fuel cells and their application in transportation Track 8: Electric systems and components for sea, undersea, air and space vehicles Track 9: Modelling, simulation and control Track 10: standards, regulations and policies for transportation electrification Contact www.itec2014.com/

Infobatt 2014 Niagara Falls, Canada September 14-16 Infobatt provides the ideal forum for participants to better understand the intricacies of energy. A panel of experienced energy professionals will be giving presentations and hosting discussion groups on a myriad of topics within the energy field. The Infobatt tradeshow offers the unique opportunity for attendees to get up close and personal with the leading energy industry related vendors from around the globe. Contact Polytronics Engineering Tel: +1 905 305-8204 Fax: +1 905 709-0630 contact@infobatt.com

www.batteriesinternational.com

FORTHCOMING EVENTS LOW CARBON VEHICLE EVENT 2014 Millbrook Proving Ground, UK September 10-11

THE BATTERY SHOW September 16-18 • Novi, Michigan, USA

This event last year had: • 1962 total visitors • 805 organisations represented • 157 organisations exhibited • 79 vehicles in the outdoor display • 59 presentations • 16 seminar sessions

The Battery Show 2014 is the premier showcase of the latest advanced battery technology. The exhibition hall offers a platform to launch new products, make new contacts and maintain existing relationships. With more qualified buyers and decision makers than any other event in North America, The Battery Show 2014 is the key to unlocking your future business opportunities.

Contact Cenex Loughborough Ofﬁces, Innovation Centre, Holywell Park, Loughborough University, Ashby Road, Leicestershire, LE11 3TU, United Kingdom Tel: +44 1509 635 750 Fax: +44 1509 635 751

The show is attended by technical leaders, scientists, engineers, project leaders, buyers and senior executives concerned with advanced energy storage and will host the very latest advanced battery solutions for electric and hybrid vehicles, utility and renewable energy

Aerial view of Millbrook Proving Ground, one of the world’s most famous automotive testing areas

support, portable electronics, medical technology, military and telecommunications. This is the event that buyers, genuine decision makers, engineers, technical leaders and executives use to source suppliers and discover the very latest power solutions. If you are involved in the battery industry, you cannot afford not to be represented in the world’s foremost industry trade show. Contact Adam Moore, sales director adam.moore@smartershows.com Steve Bryan, event director steve.bryan@smartershows.com US & Canada toll free: +1 855 436 8683

14TH EUROPEAN LEAD BATTERY CONFERENCE AND EXHIBITION Edinburgh, Scotland • September 9-12 The 14th European Lead Battery Conference (14ELBC) and Exhibition will provide an ideal opportunity for those involved with the global lead battery industry to review and discuss the most recent technical advances associated with lead-acid batteries, especially in the areas of emerging new automotive and renewable energy systems. Technical presentations at the conference will bring delegates up-to-date with the latest research and development information from around the globe, and will be of keen interest to both manufacturers and users of lead-acid batteries, as well as to the scientific community. An extensive exhibition — expected to involve over 100 exhibitors

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— by suppliers to the industry of equipment, materials and technology, will also take place. Since the first meeting in Paris in 1988, the European Lead Battery conferences have developed a reputation for high quality presentations on the design, manufacture, performance and use of lead-acid batteries. Over 600 delegates and 100 exhibitors attended 13ELBC in Paris 2012 and similar numbers are confidently expected in Edinburgh. Contact Maura McDermott Tel: +44 207 833 8090 Fax +44 207 833 1611 mcdermott@ila-lead.org

www.batteriesinternational.com

FORTHCOMING EVENTS

Batteries 2014 September 24-26, Nice, France

info@icm.ch

19th International Congress for Battery Recycling ICBR 2014 Hamburg, Germany September 24-26 This top quality congress in battery recycling will focus on: • Update of battery legislation in EU and worldwide • Safety issues and transportation regulations • Recycling efficiency • The great future of LEV, EHV, PEHV and EV battery systems • The success of lithium ion batteries technologies • Country reports on collection and recycling • Best available technologies for battery recycling The congress is a perfect platform to exchange the latest information, to meet your business partners and to get easy access to new potential clients. The congress is also organizing plant tours to leading companies in the vicinity of Hamburg Contact ICM, Schwaderhof 7, 5708 Birrwil, Switzerland Tel: +41 62 785 10 00 19th Fax: +41International 62 785 10 05 Congress for Battery Recycling ICBR 2014 Hamburg, Germany. September 24-26

Batteries 2014 September 24-26 Nice, France Batteries 2014 promises to be the main pole of exchanges between the whole value chain of the battery market: raw material and electronic devices suppliers, battery manufacturers, industrial users, environment and recycling specialists and universities. The congress programme in will include three days of technical conference sessions, 60 high level speakers; some 40 booths within a large exhibit area; many networking opportunities Contact Christophe Pillot, chairman +33 1 47 78 46 00 cpillot@batteriesevent.com Sonia Jouneau, congress director sjouneau@batteriesevent.com

China International Green Vehicle Industry Expo 2014 Hangzhou, China September 26-28 GVE China 2014 is the premier showcase of the latest advanced EV, HEV, NGV technology. The exhibition hall offers a platform to launch new products, make new contacts and maintain

existing relationships. With more qualified buyers and decision makers than any other event in China’s green vehicle industry field, GVE China provides you with the best opportunities to meet and promote your products to China and Asian green automobile market. GVE China has an exhibition area of over 15,000 square meters and more than 500 booths in total. Its main exhibitors include various new energy automobile companies, related downstream components and related products manufacturing enterprises. Enterprises and experts all over the world are welcome to show and join the discussion of the electric vehicles’ business models, demonstration and market-oriented promotion, battery problems in nice Hangzhou, China. Contact Hangzhou Sinobal Conference & Exhibition Service Tel: +86 571 8577 9755 or +86 8577 8533 Fax: +86 571 8577 9709 gve@sinobal.com Faith Mao faithmao@sinobal.net

Energy Storage North America Sam Kpse. California, USA September 30-October 2 The first staging of Energy Storage North America (ESNA) in 2013 in San Jose, California was a tremendous success. Jointly organized by Messe Düsseldorf North America and Strategen Consulting, ESNA 2013 was the first energy storage conference and exposition in the US to focus exclusively on projects, applications, and deals. Over 740 attendees from 16 countries, representing 400 organizations, joined the event to celebrate successful projects and applications, share best practices and accelerate energy storage market development. In addition 43 exhibitors demonstrated innovative technologies and applications to transform North America’s grid infrastructure. Contact For exhibitor information Daniela Knoll, director, event operations, Messe Düsseldorf North America dknoll@mdna.com Tel: +1 312 621-5838 For conference information: Cedric Christensen, director of operations, Strategen Consulting

110 • Batteries International • Summer 2014

www.batteriesinternational.com

North Americaâ&#x20AC;&#x2122;s Premier Exhibition and Conference for the Solar Industry Moscone Center, San Francisco Be a part of North America's most-attended solar event Join 27,000 peers, visit 600 exhibitors, attend 80 conference sessions Make key connections in U.S.â&#x20AC;&#x2122;s #1 installation market: California Gain insight into technology trends on PV, energy storage and solar heating/cooling Intersolar - Your key for successful business in the growing U.S. solar market!

Co-located with

FORTHCOMING EVENTS HEVC 2014 — 5TH HYBRID AND ELECTRIC VEHICLE CONFERENCE London, UK • November 5-6

be missed! The Hybrid and Electric Vehicles conference is a well established two day event focusing on shaping the future of hybrid and eco-friendly vehicles The key objective of the event is to raise awareness and stimulate debate on hybrid and eco-friendly vehicles, and through a combination of technical presentations and poster sessions, formulate future strategy. Government, industry and academia

must act together to develop a cohesive, long-term future strategy that effectively reduces the vehicle emissions and this is your chance to influence the debate.

cchristensen@strategen.com Tel: +1 510 665-7811

http://www.electrochem.org/meetings/biannual/226/

226th Meeting of the Electrochemical Society

BATTERY+STORAGE

materials to turnkey battery systems. The target groups include trade visitors from the storage system manufacturing industry, service providers, researchers and representatives of the most important user industries, for example the electric mobility, energy supply and electrical engineering industries. The BATTERY+STORAGE meeting is held together with the f-cell Fuel Cell Forum and e-mobil BW TECHNOLOGIETAG. The f-cell focuses on futureproof energy supplying based on hydrogen and fuel cell technologies, and on stationary, mobile and specialised fuel cell application areas. The e-mobil BW TECHNOLOGIETAG discusses current technological trends in electric mobility on regional, national and international level. Topics include battery production (focus 2012: lithium-ion batteries), energy storage solutions for renewable energies, battery system requirements and automation. Another focus of attention is synergies between technologies and new application markets.

Back for its 5th year, the Hybrid and Electric Vehicles Conference will once again be the forum to share the most recent research, work and developments within the field of electric vehicles and hybrid infrastructure. Offering delegates the chance to gain an up to the minute understanding of recent developments and future trends in the design, implementation and strategy of this hybrid technology, this is an event not

19th Congress of the Mexican Electrochemical Society 7th Meeting of the Mexico Section of the Electrochemical Society Cancun, Mexico October 5-10 Contact

Three events in one: Cancun, Mexico October 5-10

112 • Batteries International • Summer 2014

Stuttgart, Germany October 6-8 BATTERY+STORAGE is the first international fair for battery and energy storage technologies — and thus an important platform for speeding up the change to alternative energy sources. It addresses all players involved in the manufacturing of battery and energy storage systems for mobile and stationary implementation. All areas are dealt with, from raw

Contact Tanya Spencer Event producer Tel: +44 1438 767 662 Fax: +44 1438 767 305 tspencer@theiet.org

Contact Landesmesse Stuttgart GmbH Messepiazza 1 70629 Stuttgart Tel: +49 711 18560-0

www.batteriesinternational.com

FORTHCOMING EVENTS EV 2014 Vancouver, Canada, October 28-30

Electric Mobility Canada hosts an annual conference and trade show which provides learning and networking opportunities that cover technical, business and policy discussions for the electric transportation sector. Electric Mobility Canada — the voice of the electric vehicle industry in Canada — welcomes you to our 6th annual event. EV2014 promises to be an outstanding event designed to advance the electrification of all modes of transportation in Canada, particularly in urban centres. We are delighted that BC Hydro and the City of Vancouver are hosting this event. British Columbia and the City Vancouver have much to show in terms of electrified and sustainable transportation. We are also pleased with the wide support from key organizations with their assistance in pulling this conference together. The theme for the conference is ElectriCITIES — Move Electric and will focus on how electric transport contributes to the creation of liveable cities. EV2014VÉ will be of particular interest to those supplying, operating or planning to market or operate battery, plug-in hybrid, hybrid or fuel cell electric vehicles in Canada. It is a three-day event with plenary sessions, technical sessions as well as special sessions aimed at academics, new technology developers and vehicle manufacturers.

www.batteriesinternational.com

The exhibition hall will host numerous EV companies, utilities, component and technology developers, government agencies, infrastructure companies and more. You will be exposed to some of the latest battery, hybrid, plug-in hybrid and fuel cell electric vehicles. EMC is always seeking to bring new electric-transport related ideas, technologies and business models to our delegates. As a result, our 2014 conference will look at autonomous electric technologies as well as electric car sharing models. Contact EV2014VÉ Conference Secretariat – JPdL International 1555 rue Peel, Suite 500 Montréal (Québec) H3A 3L8 Canada

Fax: +49 711 18560-2440 info@messe-stuttgart.de

eCarTec – 6th International Conference for Electric- & Hybrid-Mobility Munich, Germany October 21-22 eCarTec is the worldwide biggest electric and hybrid mobility, trade fair, conference and B2B platform Contact MunichExpo Veranstaltungs Zamdorfer Straße 100 81677 München Germany Tel: +49 (89) 32 29 91-0 Fax: +49 (89) 32 29 91-19 felix.cabello@munichexpo.de www.munichexpo.de

Tel: +1 514 287-9898 ext. 334 Fax: +1 514 287-1248 EVconferenceVE@emc-mec.ca Al Cormier, CAE, project director, Electric Mobility Canada Suite 309, 9 — 6975 Meadowvale Town Centre Circle, Mississauga, ON L5N 2R2 Canada Tel: +1 416 970 9242 Fax: +1 905 858 9291 al.cormier@emc-mec.ca www.emc-mec.ca

Batteries International • Summer 2014 • 113

FORTHCOMING EVENTS Energy4Power Live London, UK November 5

Do you work in the battery or fuel cell manufacturing business and are looking for ways to produce large quantities at less cost? Are you looking for new mobile and stationary energy storage methods, or are you interested in future mobility? As an international trade fair, conference and networking event, WORLD OF ENERGY SOLUTIONS is the connecting link between the innovation areas of energy supply, storage and mobility and their numerous services and offers. Visit WORLD OF ENERGY SOLUTIONS 2014 and meet the ”producers“ of the future of energy and mobility.

Conference with over 140 international speakers – Register now!

Energy4PowerLive will feature exhibitors from a number of fields, and one of the four tracks of this one day conference will be specifically looking at standby power, energy storage, batteries and how these are integrated into the larger energy industry. Exhibitors include those involved in: • Generating sets (manufacturers of complete diesel, gas or gas turbine engine driven power generating systems in the range of 2kW to 5MW) • Acoustic treatment • AC generators (manufacturers of rotation AC generators in the range 0.5kVA to 30MVA) • Biomass • Biogas • CHP/Cogeneration • Control & monitoring Equipment (manufacturers of electrical control and switchgear panels, measuring instruments and digital controls). • Diesel engines • Engine speed governors • Engines (manufacturers of diesel and gas engines for power generation in the range 3kw to 6MW). • Environmental solutions (manufacturers of noise attenuation equipment, exhaust gas after treatment systems and vibration isolation units) • Fuel systems • Gas/steam turbines • Governing (manufacturers of engine speed governors and controls for load management) • Heat exchangers • Load banks • Noise, acoustic equipment • Radiators (manufacturers of engine cooling system radiators and heat exchangers). • Services (suppliers of hire equipment, repair, installation, maintenance and freight forwarding services and technical consultancy) • Starting (manufacturers of electric, air and hydraulic engine starting equipment) • Switchboards • Test equipment (manufacturers of static and mobile electrical resistive load banks). • Turnkey solutions • UPS rotary • UPS static Contact Global Media Publishing Global House, 13 Market Square, Horsham, RH12 1EU, United Kingdom Tel: +44 1 403 220 750 • Fax: +44 1 403 220 751

Lithium Battery Power Conference Washington DC, USA November 11 The Lithium Battery Power Conference, now in its 10th year, will include technical case studies and presentations on next generation lithium-ion and beyond lithium-ion advanced materials science, technologies and research from academic and government labs, leading manufacturing, and start-up companies. In addition to research papers, this conference will also address the need to better connect research science and manufacturing to create higher performing, lower cost batteries. There will be a series of strategy talks on this bridging theme along with a panel discussion.

www.world-of-energy-solutions.com d-of-energy-so

114 • Batteries International • Summer 2014

Topics include: • New ideas for battery design, battery trends and chemistries

www.batteriesinternational.com

FORTHCOMING EVENTS • New lithium chemistries for better electrodes and higher LIB performance • Beyond Li-ion research including lithium-air/lithium-oxygen, lithiumsulphur, metal-air • From novel materials and components to systems design and integration • Novel electrode and electrolyte materials and technologies, solid electrolytes • Role of nanotechnology in improving power and energy density • State-of-the art commercial lithiumbased batteries • Challenges of manufacturing Liion, scale-up, performance in real devices, formulation • Issues of miniaturization for certain applications • Thin-film lithium-based batteries • Silicon-based lithium battery anodes • Solvent-free lithium electrode manufacturing • Trending from EV to stationary applications • Supply chain challenges for raw materials for new battery chemistries • Supercapacitors Contact Edel O’Regan Vice President, Conference Production Knowledge Foundation Tel: +1 781 972 5423

3rd Workshop on Lithium Sulfur Batteries Fraunhofer IWS, Dresden, Germany November 12-13 Lithium-sulfur batteries are the most promising choice for future energy storage systems. Novel materials such as nanostructured carbon/sulfur composite cathodes, solid electrolytes and alloy-based anodes are expected to significantly enhance the cell’s performance. Following the success of our previous lithium-sulfur battery workshops in 2012 and 2013, this year’s symposium will again bring together an international audience of scientists and industrial customers. Renowned experts will present the latest results, new materials, processes and applications in the field of lithiumsulfur batteries. Contact Fraunhofer-Institut für Werkstoff- und Strahltechnik Winterbergstr 28 01277 Dresden, Germany Tel: +49 351 83391-0 Fax: +49 351 83391-3300 info@iws.fraunhofer.de www.iws.fraunhofer.de

www.batteriesinternational.com

GRAPHENE LIVE! — APPLICATION, TECHNOLOGY, OPPORTUNITIES ENERGY HARVESTING & STORAGE USA, COMMERCIALIZATION OPPORTUNITY

Santa Clara, California, USA • November 19-20

Graphene

An international conference and tradeshow covering the applications and latest technology developments of Graphene Our audience will develop a comprehensive yet detailed understanding of the state of technology and market per graphene application area. The conference will cover all promising applications of graphene, including graphene composites, supercapacitors and batteries, functional inks, logic and memory, touch screens, sensors and bio-electronics and beyond. Uniquely, you will hear the full story per market segment. Potential end-users and investors will initially outline the opportunities, requirements, scaling concerns, price points, etc. Academics/experts will then discuss the latest progress and challenges facing graphene per application area. Companies targeting each graphene application area will then present their technology, target markets, business strategy, progress, etc. Here, we will also include companies developing a suitable manufacturing technique for that application. This will include players commercialising chemical vapour deposition, oxidisation-reduction, liquid-phase exfoliation, plasma, etc. Finally, you will hear views from player(s) from the incumbent and/or rival technology area where appropriate. The event brings together users, material providers, equipment makers, policymakers, academics and investors from more than 30 countries. It covers more than 30 speakers over the two days. Energy harvesting This fifth annual IDTechEx event provides insight into energy harvesting technologies, case studies and markets, ranging from consumer electronics and sensors all the way to vehicles, building and industrial automation. Attendees to this event will learn: • Who needs energy harvesting, the ROI and sectors close to adop-

•

tion. End user and integrators from a diverse range of markets present their needs and experiences. All the technology options — from energy harvester choices, energy storage options, through to the latest in low power electronics and wireless sensors and related technologies such as thin film harvesters and supercapacitors. The current state of the technology at the event tradeshow… and all with an analytical, commercial outlook, taking into account market requirements, competitive technologies and development roadmaps. More than 400 people attend this event to aid their critical business and technology development strategy decisions in this emerging, high growth topic.

Application-focused sessions cover the opportunity of energy harvesting in the built environment, showing how it is enabling smart and more energy efficient buildings and smart cities, merging with the Internet of Things (IoT) and M2M evolution. Sessions also focus on industrial wireless monitoring, transportation and consumer electronics. The conference features some of the world’s largest user and integrator companies presenting on their needs and many are in attendance to learn how they can use these new technologies to address their challenges. The event assesses the merit of the following technologies from world leading companies and research institutes: energy harvesting technologies, including thermoelectric, piezoelectric, photovoltaic, electromagnetic, wireless power transfer and multi modal versions Contact Chris Clare Event director +44 1223 810270 c.clare@IDTechEx.com

Batteries International • Summer 2014 • 115

FORTHCOMING EVENTS E European Electric Vehicle Congress C B Brussels December 2-5 D

Little did Brian Conway (front row second from the right) think his supercapacitor would still be being discussed in Santa Clara

Supercapacitors USA Santa Clara, California November 19-20 Supercapacitors USA 2014 is a leading conference in North America on the subject for this rapidly growing multibillion dollar market This international conference and tradeshow focuses on the future applications, market forecasts and opportunities as well as giving the latest technology trends, providing a global platform where users, investors, suppliers, developers, system integrators and government representatives come together. There are no commercials! Topics include: How supercapacitors wholly or partly replace batteries - what next? How supercapacitors replace electrolytic capacitors Road map of how supercapacitors, pseudocapacitors, supercabatteries and other variants are improving and what markets this will open up New forms - structural, smart skin, flexible, transparent, foldable, paper 10 year forecasts for supercapacitors and their variants - operating parameters, costs, sales Today’s supercapacitors and their variants - comparative data, sales successes and applicational challenges The future of hybrid and pure electric EVs using supercapacitors by land, water or air Applications for supercapacitors (cold start, regenerative braking, etc.) Supercapacitors in military and aerospace applications Static applications - grid, welding and other electrical engineer-

116 • Batteries International • Summer 2014

ing applications The future role of energy storage in renewable energy/ energy harvesting technologies: challenges and solutions Supercapacitor applications in consumer electronics including mobile phones Technical challenges and improvements needed for supercabatteries to fully realize their potential Printing technology and supercapacitors, including control circuits and their integration Materials in energy storage: Graphene, Carbon Nanotubes, ionic liquids, non-flammable and non-toxic electrolytes, increased temperature range Contact Corinne Jennings Event Director Tel: +44 1223 812300 E-mail: c.jennings@IDTechEx.com

T The European Electric Vehicle Congress strengthens its posiC tion as global platform to fost ter t exchange of views between the R&D, the industry, the aut thorities, the end-users and the t NGO’s actors, so to develop synergies in the field of eMobility. As motivations and constraints are different for each of them, EEVC-2014 has the objective to help define the most promising solutions to be selected, taking into account the research and development progresses, as well as the environmental and economical constraints. Feedback from past and current experiences will also be discussed and analyzed so that best practices and best ways for a daily introduction of eMobility could be identified. The Th venue is again Brussels, so to ensure optimal connection with the representatives of the European Institutions that are considering Battery, Hybrid and Fuel Cell Electric Vehicles to play an important role to lower atmospheric pollution and to reduce oil dependency. Policy aspects, new mobility concepts, noise and health factors will also be issues to be discussed. The day prior the Congress, a EU Project day will be organized to provide the audience with a complete overview of the different programs supported by the European Authorities (FP7, Horizon 2020, IEE, EUROSTAR, INTEREG) & related funded projects dealing with eMobility, so to identify possible actions, overlaps, synergies and/or gaps. Contact Tel: +32 477 364 816 E-mail:info@electri-city.mobi

European Electric Vehicle Congress Brussels, December 2-5

www.batteriesinternational.com

REGISTRATION IS NOW OPEN

FORTHCOMING EVENTS EV CHINA: the 7th China International Energy Saving and New Energy Vehicle Technology Exhibition Shanghai, China December 18-21, As one of the most important professional exhibition in Asia, EV CHINA New Energy Auto Show aims to provide the newest information and integrated solutions for customers. EV CHINA creates a professional trade platform under the brand influence of nevsources.cn and New Energy Vehicle magazine for companies at home and abroad to show electrical vehicle and charging equipment in the Chinese market. At the same time, it provides a fantastic opportunity for companies to meet their customers and buyers when showing their products which is good platform for trade cooperation. EV CHINA combines a professional exhibition and trade exhibition together. Contact www.evchina.cc/en/

Energy Storage India 2014 New Delhi December 4,5 The structural realignment of the energy infrastructure in India is the focus of the 2nd Energy Storage India Conference & Expo. While the main interest will be on the establishment of technologically and economically viable energy storage and microgrid technologies, the Conference & Expo will systematically present a selection of practical applications and pioneering solutions while illustrating the necessary political conditions. On 3rd December, one day before the start of the Expo, interested visitors and exhibitors can take part in preparatory workshops of the Conference. The Conference will be hosted at the Kempinski Ambience Hotel. After China, India is the most populated nation in the world, with a total population of almost 1.3billion. Providing access to reliable power and power quality for all is a major challenge. In the Smart Grid Vision and Roadmap, the Ministry of Power has set a goal of electrification of all households with minimum 8 hour of power availability. This will require providing electricity to over 400 million people currently not connected to the grid. While developments are still in their infancy, the market has tremendous potential. Last year, India assumed a pioneering role in the deployment of advanced energy storage systems, particularly for decentralized applications

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with over $300 Million spent on Li-Ion battery systems for telecom towers. Apart from the 600,000 telecom towers, India is also planning to install 26 million solar powered water pumps in coming decade. Over the next two years, the government will install the first pilot grid scale energy storage plants, and plans for a major implementation of this technology are to be completed by 2022 Contact Sachin Patil Messe Düsseldorf India Pvt E-mail: PatilS@md-india.com Tel: +91 11 2690 1655 Mob: +91-9717179615

The 2015 European Advanced Automotive & Stationary Battery Conference Mainz, Germany January 26-29, 2015 Join us at the leading European forum where automakers and energy-storage system developers discuss the status and prospects of the latest advanced batteries to meet the needs of the European market. AABC Europe 2015 will offer two technology focused symposia and two application focused symposia, including AAB’s first exploration of the emerging market for stationary batteries in utility applications Contact: info@advancedautobat.com Tel: +1 530 692 0140

www.batteriesinternational.com

Top Speakers, Hot Subjects! Won’t you be there? ILZDA

INTERNATIONAL LEAD CONFERENCE

International Conference & Exhibition on

LEAD & LEAD BATTERIES – TOWARDS SUSTAINABLE DEVELOPMENT 28-29 July 2014, The Lalit, New Delhi

CONFERENCE World class speakers congregate: • Mr Andy Bush, International Lead Association, UK • (To be announced), International Lead Zinc Study Group • Mr Mark Stevenson, Chairperson, ABC & ISLC • Mr Brian Wilson, International Lead Management Centre • Mr Doug Lambert, WIRTZ, USA • Dr Massimo Maccagni, Engitec Technologies S.P.A, Italy • Mr Wang Xinyu, China Non-ferrous Metal Industry’s Foreign Engg & Construction Co Ltd, China • Ms Zhang Weiqian, Beijing Antaike Inf. Dev Co. Ltd, China • Mr Yang Gewen, China Non-ferrous Metal Industry’s Foreign Engg & Construction Co Ltd, China • Mr Manoj Soni / Pranbesh Roy, Hindustan Zinc Ltd • Mr Rakesh Malhotra, Luminous Power Technologies Ltd • Mr Subhankar Chakrabarty, Exide Industries • Dr B Sengupta, Former Member Secy, CPCB • Dr V K Aggarwal,Supreme Batteries • Dr Sugumaran, Consultant • Dr S N Joshi, Green Vision Technologies Pvt Ltd • Dr Yamini Gupt, University of Delhi • Dr Venkatesh Thuppil, Indian Society for Lead Awareness & Research • Dr S Ambalavanan, Central Electro Chemical Research Institute • Mr C S Ramanathan, Consultant • Mr G Chandrasekhar, The Hindu Business Line • Mr Navin Sharma, Gravita India Ltd • Mr Sanjeev Tyagi, Verdeen Chemicals Pvt Ltd • Mr P K Sood, Regnant Energy Systems P Ltd • Mr Baiju Parasuraman, Daramic India • Mr Sajid Mobashir, Dept. Of Heavy Industries

EXHIBITION: to showcase the latest developments in lead and lead batteries, technology, plant & equipment, environment protection, markets etc., at the venue. Several stalls already booked; please rush your stall booking. Pl. see website (www.ilzda.com)for exhibition layout. Stake holders of the lead & lead battery industry from India and overseas countries participate & deliberate. For sponsorships, registration, exhibition, advertisements, pls. contact: India Lead Zinc Development Association, New Delhi Ph: +91 11 26056889/7360, 29955536; Fax: +91 11 29956522 Email: ilzda.info@gmail.com; website: www.ilzda.com

SPONSORS: M/s Hindustan Zinc Limited, Amara Raja Batteries Ltd, Luminous Power Technologies, Engitec Technologies Italy, Gravita India Ltd, Arya Alloys P Ltd, Supreme Batteries & Nile Ltd HOSPITALITY PARTNER: M/s Dreamz Conference Management Pvt Ltd MEDIA PARTNERS: Batteries International, MMR, Steel and Metallurgy & SSRL Battery Directory

INDUSTRY GIANTS: TROJAN BATTERY Trojan Battery has always had a distinctive business style characterized by the management approach of this family-owned ﬁrm. Kevin Desmond reports.

The twists and turns of theTrojan story The history of Trojan Battery is a complex one. At one level it’s a simple tale of how a family business that started as a small repair shop in downtown Los Angeles could turn into an internationally respected firm. But it’s also a story of how clever business management, an ability to understand the technology trends that shaped the 20th century, and a close knit family could survive the twists and turns of some 90 years of trading. It all began with George Reginald Godber. Born in Boston, Massachusetts on Independence Day 1899, he was just a teenager when he first stumbled on the world of electric batteries. His location? A Holland L-Class submarine off the coast of Ireland towards the end of World War I. His job was to ensure the reliability of the submarine’s power source — vital to the boat’s mission and safety, irrespective of the war still raging around him. The war over, Godber and Carl Speer, his future brother-in-law, set up a small auto parts business in a garage (where the Occidental Towers eventually were to be built in downtown Los Angeles). Their business idea, which took time to formulate, was to take what they had learned in the US Navy and apply it to the now booming American economy. They knew how to repair batteries, but quickly realized that a better battery would be a more complete solution. They also realized early on that issues such as the health of the battery depended not so much on its engineering — although that was important — but in the chemistry of the battery itself. In 1925 they set up what was to become a household name and the arrival of Trojan Battery. The choice of name of the firm was not an obvious one. But one, nevertheless, that showed that the two partners were not just talented businessmen

120 • Batteries International • Summer 2014

George Godber, founder of the family ﬁrm

“We provide the infrastructure that our competitors don’t have to properly support the continuing design changes in the golf cars, and the ﬁeld demands from a technical support aspect.” but had a quirky, even sentimental streak inside them. Speer, who’d played lineman for the University of Southern California football team in 1916, loved the idea of adopting the team’s mascot of the USC Trojan horse mascot named Traveler. “Once that’d been decided choosing a company colour was easy — it was inspired by the Cardinal colour from the USC Cardinal and Gold team colours. Trojan initially began by manufac-

turing automobile batteries. There weren’t as many different sizes of batteries in that period, so Trojan made batteries for most models. They later moved into building batteries for commercial trucks. But through the ups and downs of the tempestuous economic climate that characterized the 1930s the firm retained its focus on looking at ways of improving their basic product: the lead acid battery. The Eureka moment came in 1939 when Godber perfected a way to determine and maintain the proper electrolyte level in the cells of an electrical battery. His key patent (US 2242671) was granted in May 1941. By this time, Godber’s sons, Dick and Ray, had joined the company, ushering in the second generation of the family firm. Neither had any special training or electrical engineering degrees — though both attended University of California Los Angeles — and had experience working at Trojan during summer vacations. Dick spent several years in the Navy before joining the company. Ray started his own auto parts business early on and when that struggled he then joined the company. There was a kind of irony when Dick and Ray joined the firm. “Trojan was a USC thing yet they went to UCLA for college, USC’s biggest rival,” says Rick. “We finally got it right when my son Bryan and I both graduated from USC, with Bryan also obtaining his MBA from USC!” The trigger for the arrival of Trojan as a major US battery firm came in the early 1950s with the development of Trojan’s deep-cycle batteries. The catalyst was a dynamic businessman named Royce Seevers who had set up the Autoette Electric Car Company in Long Beach, Los Angeles. Seevers had been asked to produce a vehicle for a physically challenged golfer, enabling him to play

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INDUSTRY GIANTS: TROJAN BATTERY Speer, who’d played lineman for the University of Southern California football team in 1916, loved the idea of adopting the team’s mascot of the USC Trojan horse mascot named Traveler. Once that’d been decided choosing a company colour was easy — it was inspired by the Cardinal colour from the USC Cardinal and Gold team colours. on the Thunderbird Country Club golf course, a celebrity haven in Palm Springs, California. The result was the Autoette Golfmobile. This was installed with specially made batteries from Trojan providing motive power to a converted 24-volt Dodge 1½hp electric starter motor. Trojan immediately realized the business opportunity to be seized in the electric golf car industry, and soon Trojan maroon batteries were powering golf cars on over 98% of the top golf courses in the US. One of Trojan’s first models was the J217. The “J” stood for Jumbo due to its size and the 217 was the 20 AH rating. This was built in a hard rubber case and used rubber and glass separators which were of the highest quality available at that time. The pasting formula was developed with the help of Joe Orsino, a well known consultant of the time. It still forms the basis of the current pasting formula today with some tweaks and additives that have been added along the way that are patented. (The J217 changed to the company’s most popular sized golf battery called the T105 in the early 1980s. It’s an odd name in that it’s also a teckie name — the T stands for Trojan but the 105 was the 75 amp discharge rate in minutes which at the time depicted the average AH draw of an electric golf car.) In the 1960s, the company expanded its line of deep-cycle batteries. The Godbers saw the way whole markets were about to move into such diverse electrically operated equipment such as forklifts, floor scrubbers and aerial work platforms. They started contacting the OEMs in these markets and designing products to meet their needs. This pushed them into larger sized products along with their golf products such as Industrial Steel Tray batteries and taller models such as the L16 and J305 for boom lifts and floor scrubbers. “Trojan’s Industrial battery business at this time was focused on utilizing

122 • Batteries International • Summer 2014

our proprietary pasting formula for longer cycle life. We also focussed our efforts on the quality and craftsmanship of our manufacturing operation,” says Rick Godber. The changing face of Trojan and photo of Speer’s “This set the platform team in action in 1916 that inspired it all. for the Trojan brand being noted for very high quality.” One of the strangest characteristics of the lead acid battery business — where rivals look after their own — extends from coast to coast. East Penn, for example, has received (and given) help from its competitors during industry downturns and calamities. So too for Trojan when a fire in 1950 effectively improve performance. The R&D for could have shuttered the business. this was led by Rick Godber, Tom In a show of support, the local bat- Tomkins, the vice president for manutery manufacturers got together and facturing and the engineering departsupplied the Godber family with ment. products until Trojan could get a new “We were looking for an alternafacility up and running. In 1968, Tro- tive to the Permalife separator that jan moved to petroleum-rich Santa Fe was widely used in the golf car battery Springs in Southern California, the market in the early 80s,” says Rick last of seven such relocations. Godber. “We felt the separator had a Growth continued into the 1970s major impact on the overall life cycle with the addition of batteries for floor performance of a deep cycle battery machine, marine, construction and so we worked with Amerace (later to various industrial applications. be known as Microporous) on sevThe firm’s understanding of the im- eral design chemistries until we found portance of R&D, from its original what we were looking for. The result patent application in 1939, developed was that we were able to double the during this period with its investment cycle life with minimal cost increase. in Santa Fe Springs. This helped Trojan obtain virtually The result, says Trojan, is that sev- 100% of the golf OEM business.” eral key innovative technologies have By this time, Rick Godber (third genemerged which have made their deep- eration) was president of Trojan Batcycle batteries so successful. tery. Realising the way that the wind In 1985 Trojan developed the was blowing he put great emphasis on Maxguard Advanced Design Separa- both R&D and the latest technology. tor — making Trojan the only bat- “During my tenure we added two new tery with this proprietary technology, locations in Georgia besides the Calidesigned to increase battery life and fornia operation. One through acqui-

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INDUSTRY GIANTS: TROJAN BATTERY

Trojan’s ﬁrst battery factory circa 1950

But through the ups and downs of the tempestuous economic climate that characterized the 1930s the ﬁrm retained its focus on looking at ways of improving their basic product: the lead acid battery. The Eureka moment came in 1939 when Godber perfected a way to determine and maintain the proper electrolyte level in the cells of an electrical battery. sition and one built from the ground up,” he recalls. “We grew from 40,000 square feet in the early 1970s to well over 500,000 square feet in 2007, with more expansion plans in the very near future. We’ve developed manufacturing processes that are unique for those who use our sizes of flooded products. We have completely converted our Li-

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thonia plant to being fully automated and state of the art for our types of batteries.” This investment in technology has continued to this day. Under the most recent management team headed by Jeff Elder, president and CEO, Dave Godber, executive vice president of sales and marketing (and a key third generation family member), and Gor-

don Beckley, executive vice president of engineering, Trojan has o opened a new state-of-the-art factor in Sandersville, Georgia. Its main ry fo focus is on AGM products. During the 1990s, Trojan faced se several challenges in terms of enabl bling the business to grow further. “Our aftermarket distribution was po poor,” says Rick Godber. “Our solutio was to seek out the top 13 or tion 14 battery specialists in the country and develop exclusive territories for the with our Trojan products. Led them by Dave Godber, we established our Ma Master Distributor programme in the US and Canada, and eventually expan panded this programme globally. This has worked out well with a cohesive gro focused on promoting the Trogroup jan brand in the proper fashion. “ “Dave Godber has been extremely influential in establishing our Master Distributor programme over the past 14 years, and has extended this strategy to our very successful international endeavours.” Dealing with competition — and particularly, the way competition has been carried out — has required extensive rethinking of investment strategies and branding. “We had a large number of battery manufacturers playing in our niche even though their products didn’t compare to Trojan’s in quality,” says Godber. “Their strategy in most cases was to look at our market as a loss leader so pricing was an issue. This had the long-term effect of shrinking the number of competitors in our markets. “In the 90s, Trojan had virtually all the OEM golf business. Customers’ demands were high in terms of wanting engineering and technical support. This forced us to add a number of resources to support this aspect of the business. In the long run, this is what most differentiates Trojan now at the OEM level. We provide the infrastructure that our competitors don’t have to properly support the continuing design changes in the golf cars, and the field demands from a technical support aspect.” Realizing that it lacked the resources to compete in offering starting and industrial forklift batteries, Trojan moved out of those markets in 1998 to concentrate on its deep cycle business. In 1992, Trojan state-of-the-art research and development facility was set up in Santa Fe Springs, California. The year after it trademarked its branding. “Trojan maroon is now a symbol of

Batteries International • Summer 2014 • 123

INDUSTRY GIANTS: TROJAN BATTERY

The Autoette created a revolution in both golf … and batteries!

“We were looking for an alternative to the Permalife separator that was widely used in the golf car battery market in the early 80s,.We felt the separator had a major impact on the overall life cycle performance of a deep cycle battery so we worked with Amerace (later to be known as Microporous) on several designs chemistries until we found what we were looking for.” quality, reliability and excellence in the battery industry. Since then, only genuine Trojan batteries come in the distinctive maroon case that makes them stand out from the rest,” Godber says. In 2004, Trojan developed a new line of spill-proof AGM maintenancefree batteries and the following year it launched its consumer Marine/RV brand. Around that time Trojan’s engineering team partnered with Southern California Edison, the US electric utility, to develop an energy management solution reducing Trojan’s energy consumption and CO2 emissions by over 12 million pounds annually. Also that year Trojan launched its Plus Series deep-cycle battery line and a new line of spill-proof deepcycle Gel maintenance-free batteries. In 2008, Trojan recognized the global shift to energy sources that are environmentally friendly and readily available worldwide, and introduced its RE Series line of deep-cycle batteries. “These deep-cycle batteries were specifically engineered to deliver unmatched life, durability and excellent charge efficiency in renewable energy applications such as solar/photovoltaic, small wind, and micro hydro,” Godber says. “Product innovation continued in 2009 with the launch of HydroLink, a single-point watering system for Trojan deep-cycle flooded batteries. HydroLink offered a faster, safer and easier method of battery watering for a wide range of applications.” As a result of the company’s efforts in the renewable energy market segment, Trojan received the “Applica-

124 • Batteries International • Summer 2014

tion Solar Project of the Year” award in 2013 for its solar-powered rural street lighting project in Dubai. The landmark product for this year was, after five years of research, the introduction of its Smart Carbon line in 2014 to address the impact of Partial State of Charge (PSOC) on cycling batteries in renewable energy, inverter backup and remote telecom applications. ‘Smart Carbon’, which is now standard in the firm’s industrial and premium flooded battery lines, has been registered as a trademark by Trojan. It decreases the rate of sulfation in PSOC conditions, as well as providing improved charge acceptance, faster recharge and high energy efficiency in PSOC applications. Deep-cycle batteries used in offgrid and unstable grid applications are heavily cycled at PSOC, which quickly diminishes the overall life of a battery and results in frequent and

costly battery replacements. Jeff Elder, Trojan’s CEO, says the future business development of the firm is set to change following the decision in 2013 by the Godber family to sell off some of its shareholding to private equity firm Charlesbank. “By 2025 I expect that Trojan will clearly be identified as a global energy storage solutions company, not just a battery company,” he says. “The recent partnership with Charlesbank through its majority share investment in Trojan is opening up even more opportunities for us to expand globally into new markets such as renewable energy, remote telecom and transportation, as well as into new geographies including India, Southeast Asia and Africa. “It is exciting to see a business that started as a battery repair shop turn into a global energy storage solutions provider.”

Dick (left) and Ray Godber

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Contact Karen Hampton: karen@batteriesinternational.com or call +44 (0)7792 852337

d r o w t s a l e th

BCI’s birthday bonanza Enchanting publisher of Batteries International, Karen Hampton, has never been shy about announcing that another birthday has arrived. So much so she spends the last half of April and the first half of May dedicated to remembrance of her arrival into this world. “It’s not just the presents,” she sighs, “though I do like lots of them. Or everyone buying me drinks, though I don’t mind that. Rather it’s the way that I go to stacks and stacks of parties. (though of course I deserve them).” This year’s celebrations coincided with the BCI annual convention in San Diego where entire sponsored parties were hijacked in honour of her 30 plus something event. “My birthday dinners were nice but a big yacht would have done just as well. “I quite liked the look (hint) at that Medway by the way.”

Human directional signpost-guidatory thingies What is it about moder English that we want to add new words to arg ably the most proliﬁc lang age in the world? The latest, cour esy of the BCI Inter ational Commi ee For NewFangled Technical Phrases, is the “Human Directional Sig post” which, we were told would g ide us to this year’s opening

conference par on board the USS Medway in San Diego this April.

Other birthday boys and girls at the end of April included East Penn’s, Donna Snyder and Mac’s Doug Bornas. “We’re not as famous as Karen,” says Doug. “But she’s really nice and lets us go to her parties.”

Until enlightenment dawned, we dutif lly followed hand-held sig s to the car ier but en route one of our more giﬅed ba er intellect als got it. “It’s the sig s they’re holding,” he shouted. “They’re the Human Directional Sig posts.”

Birthday Boy Bornas receiving Batteries International’s present of emergency rations for on the road

Party time at ELBC This year’s ELBC conference in Edinburgh looks set to be one to remember. Or to forget if your party tastes include some of the malt whisky tasting that has been planned. Among the private exhibitors’ parties that have been rumoured to us include an evening reception in Edinburgh Castle complete with pipers, kilts and who knows what goes under them, a dinner on the Queen’s royal yacht Britannia and, so it is rumoured, a trip to Loch Ness to see the monster. But who that is, we can but speculate.

Edinburgh R&D electrolyte analysis ... on the rocks R&D never ends. Or that’s the conclusion of battery legends Dave Prengaman and Allan Cooper who say they are planning to extend their research activities into the perfect Malt Whiskey Electrolyte at this year’s Edinburgh conference. The Pre Prengaman-Cooper test, as readers of this column will remember, compar compares the taste of a whisk whisky that is served neat, with w water or with ice.” “We’ve “W had some promisi promising results so far,” says Da Dave. “But we’ve had too small a universe

Fine dining, Bulgarian style

of electrolytic material to test. In Edinburgh we’re in the home of the single malt. There’s a lot of work to do.” “Yes,” says Allan. “But it’s going to be an exacting process testing them all — especially since we’re going to have to labour through whiskies that have been aged for as much as 16 years. “It’s tough work, a precision job that requires attention when we should be relaxing after the conference …but someone has to do it. Duty calls.”

Scene. A beach bar in Albena, host resort to the battery intellectuals that flocked to LABAT this June. Blue sky, blue sea. All is perfect in the post-conference glow of heavy-weight graphene conversations. (Sigh.) In the con luxurious — just opened — luxu restaurant bar on the golden resta beach, a dozen delegates b congregated to discuss the co finer points of the day’s proceedings over a glass or pro 10 of wine.

Farewell Carol Carol Chambers, the organizing Wunderkind behind the successful AABC series of meetings, is leaving the world of energy storage to setting up a psychological counselling agency in California. “Conference organizing was my testing ground for the larger practice of dealing with the best (or is it the worst?) of human nature,” says Carol.

“Could I have a steak please?” said one impertinent delegate. “Sorry no steaks ... “But we’re very important members of the international lead acid battery community, you must be able to give us something. A burger? No burgers? So what have you got?” Cynical smile. “Mussels or sushi?” “I’ll have the mussels … and chips. By now you’ll know the answer to that one. “Well how about some bread instead?” And I think you’ll have some idea of that answer too. Ending with “Come back next week, we’ll have the napkins then.”

d r o w t s a l e th Coming soon to a Jumbo near you … Another day, another lithium plane fire? But forget those Dreamliners, look in the cabin instead. The not-sosmart phone in the pocket or the tablet in the briefcase (or the iPad with the flight plan in the cockpit?). With the rise and rise of portable electronic devices, could it only be a matter of time that we have to deal with thermal runaway at 35,000 feet? Plucky inventors George Brilmyer and Mike Gilchrist have come up with a solution — the PlaneGard a special case that comes with protective gear that allows cabin staff to deal with thermal runaway.

A little light reading for the weekend Well perhaps not so light, but substantial and highly topical and fresh from the pens of battery giants Ron Dell, Pat Moseley and David Rand. ‘Towards Sustainable Road Transport’ charts the century-long development of road transport based on the internal combustion engine, surveys the progress in technology that offers the potential to reduce emissions of carbon dioxide and, in a foretaste of the future, assesses the prospects for the targets in emissions reduction by 2050 to be met. The book, priced at $99.95, can be bought from Elsevier’s website or Amazon.

Absolutely fabulous darlinks 9am. (Actually it’s more like 5.30am — we were lying through our teeth as we love starting work as early as we can.) But one never needs an excuse for a glass or two of Bolly. Today’s excuse (I mean reason) —another stage completed in our press business. Darlinks.

WIRED Introducing Batteries International’s latest correspondent — Sara Verbruggen (a not-at-all look-alike pictured here) — freshly back from her Zipwire holiday break in North Wales. “Flying down a mountain at 100mph is kind of fun,” she says. “But the world of energy storage is an adrenaline rush that cannot be surpassed.” A misty look crosses her eyes. “Except by lead acid batteries, maybe.”

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