We make it happen from 1GWh to 40GWh and beyond
The battery market continues to grow, but predictions vary widely. Batteries are crucial for the green transition, powering electric vehicles, ships, aircraft, and renewable energy storage. The lithium-ion (Li-ion) power cell market is expanding rapidly, but this growth brings challenges. The industry is resource-intensive, existing technologies have limitations, and sustainability remains a pressing issue. The future holds exciting potential, with markets promising 30% annual growth.
However, some question these predictions due to struggling growth rates of electric cars, overcapacities in China, and evolving technologies that may render investments outdated.
Lessons from global battery cases highlight the importance of caution in investments. While opportunities may seem attractive, discerning the quality of investment cases is crucial, as many are based on incomplete or questionable assumptions. Integrity and trust are paramount for future growth.
Our promise
We support you in industrializing your battery material, cells, system, or machinery production – from strategic investment to production ramp-up and operational stability
Secure your battery factory’s Industrialization
Predictions on the future of the global battery markets are varying massively, with voices predicting everything from “Boom” to “Bust”. Our in-depth analysis for Private Equity reveals that many companies base their strategies on incomplete or inaccurate data and/or assumptions. This oversight could lead to billions in risky investments, compounding the already critical concerns surrounding battery technology.
During the critical industrialization phase of a battery-related factory, companies face unique-specific issues that require a broad range of expertise (chemicals, robotics, etc) and deep operational knowledge and experience. The question is how to industrialize “nanotechnologies” up to high GWh levels, whilst staying profitable in a low-margin business.
We see 4 main scenarios
1. Production ramp-up-is too ambitious
2. Productivity assumptions are wrong
3. Yield curve models are unrealistic
4. Restricted flexibility in transitioning to other battery technologies
Consequence: Hundreds of millions at risk
Financial risks are huge when the operational issues are not managed.
Six major operations topics to address
At EFESO, we generally address the 6 major operational topics as battery factories industrialize.
Flexible Value Chain
We support you in building a flexible plant, where both form factor and chemistry are key when dealing with frequent technology changes.
Target & Results:
- Realization of a state-of-the-art battery
- Gigafactory with advanced manufacturing technologies, efficient production, logistics, and material flows, all while adhering to sustainability guidelines.
Factory and Footprint Setup
We focus on CapEx optimization – a way to optimize total cost of asset ownership
Targets and Results
- Up to 50% increase in Capex savings
- Up to 40% increase in CO2-e reduction
- Up to 25% optimization of the ROCE
Supply chain Resilience
We implement state-of-the-art integrated business planning concepts (IBP) throughout the supply chain.
Targets and Results
- Up to 20% Improved Forecast Accuracy
- 0.5-2% Increase in customer service levels
- 10% to 40% Reduction of Inventory write-downs
- 0.5-1.5% Reduction in excess manufacturing & service costs
SoP-ready (start-of-Production)
We deliver a vertical start-up (VSU) methodology that allows to ramp-up quickly to full customer requirements.
Targets and Results
- Up to 20-40% Reduced time from SoP to full production
- 2x Improved predictability (from 50% to 95% on-time delivery)
- 10-25% Reduced total project costs
Equipment Performance
We help you with the implementation of your digital maintenance transformation – a way to improve OEE and yield.
Targets and Results
- 8-30% Increased Overall Equipment Effectiveness (OEE)
- 10-30% Reduced maintenance fixed costs
- 10-35% Improved "Wrench-Time"
- 10-20% Increased availability of MRO materials
Capital Attractiveness
We help you identify what needs to be considered when creating a financial model to inspire confidence to the financial community.
The Battery Excellence Ecosystem: Challenges and Opportunities
Industrializing a gigafactory involves a complex value chain that requires the coordination of interdependent key stakeholders, each with their own core expertise.
The battery excellence ecosystem consists of four main components plus one additional element.
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A. Materials Building Block
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B. Cell Building Block
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C. System Building Block
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D. Manufacturing Building Block
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Mining companies are at the very upstream end of the supply chain. Remember, it takes at least 12 years to develop a mine. The ‘dirty’ rocks containing the required materials are refined, a process that is both water and energy intensive.
Currently, this is mostly done by Chinese companies in China, although the European and NAFTA regions aim to become less reliant on current suppliers. Finally, the refined material is mixed and converted into active materials for both the anode (anode active material – AAM) and the cathode (cathode active material – CAM).
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This is the ‘heart’ of the ecosystem, where gigafactories build battery cells. The process can vary significantly depending on the chemistry and form factor of the final product.
Currently, most gigafactories are dedicated to a single chemistry and form factor. Given the rapid advancement and change in technology, we recommend that factories be as flexible as possible while maintaining targeted cost points
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Battery cells are combined into modules and packs, often referred to as EV ‘skateboards.’ Additionally, modified and entirely new components, known as E-components, are necessary for electric vehicles.
These components are assembled to create electric vehicles, which remain the primary forecasted application for battery packs. There is still a significant gap in addressing the upcoming reuse and recycling aspects of the ecosystem. However, if done sustainably and economically, this could eventually replace most of the current raw materials supply.
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All the above building blocks are supported in their creation and component supply by EPCs for infrastructure. Machine suppliers are crucial players in the entire ecosystem. Process innovation (such as dry coating), production performance and yield, and ramp-up times are significantly driven or influenced by the right choice of machine suppliers.
Finally, component suppliers (e.g., for housing) are essential for effective cost management of the batteries.
The joint and synchronized efforts of all these players determine the success or failure of the entire ecosystem and the individual players within it. We have identified some risks that cell manufacturers face when setting up their value streams, based on real values from our experience.
EFESO’s battery excellence services are tailored to your needs
To address the challenge of industrializing battery factories, EFESO’s Battery Excellence Team ensures our work with you is backed by solid analyses and robust data. With a focus on battery investments, we have built the world’s leading financial model in the battery sector to evaluate targeted investment cases. In addition, our long track record as industrial experts to implement factories from idea to turnkey makes us the right partner.
Regardless of your level of maturity - from concept to investment and through to factory launch - our experts are equipped to support you. We offer unique expertise, combining knowledge in new product introduction (NPI), manufacturing, and investment.
Our Impact
Based on our benchmark financial models, we can jointly enhance the reliability and effectiveness of the operational setup of your battery business, thus reducing the risk of failure and improving the profitability of your investment.
STEP 1: Check
We work with your teams to conduct Due Diligence on existing models, benchmark them against our best-in-class solutions, and identify gaps in quality, comprehensiveness, and granularity.
STEP 2: Simulate
After identifying and closing GAPs, we will run scenario-based analysis to pinpoint major threats for the investment case, prioritizing key areas for improvement.
STEP 3: Deliver
We have a unique expertise, combining product, production and investment know-how. We help identify what truly works and deliver what’s needed to put ideas into practice.
Discover our Client Success Stories
Delivering tangible results
