Investments in Battery Components Are the Modern-Day Gold Rush
Remember the gold rush where pioneers braved the wilderness in pursuit of gold? Currently, the equivalent is cutting-edge technologies and innovations that are reshaping our world. As the global trend is to reduce emissions and find greener alternatives, EVs and their batteries are playing a key role. New technologies now revolve around battery components and everyone is trying to get their hands on the best solutions first. From increasing investments to maximizing results, battery components are rapidly becoming today’s gold rush equivalent.
While the rise of EVs continues to drive battery investments, mass adoption can only happen once there's a sufficient and cost-effective battery supply to meet demand. Therefore, OEMs are investing in companies that provide a reliable battery solution. At the same time, they want their EVs to be the superior choice and are looking for innovative solutions that improve their technologies. As a result, overall battery-related venture investments are holding strong with 2023 global funding on track to exceed both 2022 and 2021 levels.
Receiving the Attention: Battery Components
In the swiftly evolving landscape of EV manufacturing, battery components are becoming the center of attention. From current collectors to binders to separators, battery components are becoming the focal point of industry discussions and investments alike. Moreover, investments in battery components are playing a pivotal role in establishing the necessary manufacturing infrastructure to meet the burgeoning demand for EVs.
One key focus area is current collectors, which are critical components responsible for enabling efficient energy within EV batteries. With the surging demand for EVs, there is a growing emphasis on developing safer and more efficient current collector solutions. Indeed, the industry's driving force is the urgent need to maximize energy storage capacity, enhance battery longevity, and contribute significantly to global emissions reduction efforts.
Binders and Separators
Similarly, binders and separators in EV battery manufacturing have also attracted substantial interest, with notable companies securing significant investments for binder technology. Indeed, battery component supplier, Entek, is investing $1.5 billion in a lithium-ion battery separator plant in Indiana, with the site set to produce enough separators to power up to 1.6 million EVs annually by 2027. This highlights the heightened focus on battery components as industry players vie to gain a competitive edge by delivering superior solutions for EV batteries.
Reducing Risks while Maximizing Results
When it comes to chemistry-based technology, it’s either functional or not. On the other hand, a platform-enabled technology acts as an insurance certificate. This allows companies investing in them to learn from both their successes and setbacks, while mitigating the risks in an unpredictable and constantly evolving environment. Consequently, a paradigm shift has started in the investment landscape in relation to what types of platforms OEMs are investing in.
By investing in technology that’s also a platform, less risks are incurred than with normal technologies. Indeed, there is a lower technical risk as developing new battery chemistries can be highly complex and costly, with a higher risk of technical challenges and regulatory hurdles. While battery components are still subject to innovation, they generally involve less technical risk. Furthermore, battery components are often designed to be compatible with multiple battery chemistries. This flexibility shields investors from the risks associated with picking the "winning" chemistry, as with an ever-evolving market, new chemistries may emerge. Therefore, investing in battery components is proving safer than battery chemistries.
The Modern-Day Gold Rush
Today, the nuggets of the precious metal are current collectors and Addionics’ technology is like the shovel, which facilitates access to this modern-day gold: Developing and manufacturing 3D current collectors. With the increasing interest from investors pouring into the battery component sector including current collectors, binders and separators, the immense potential in 3D current collectors is becoming more apparent. By being chemistry agnostic, Addionics’ technology can be combined with any battery chemistry, new or emerging and integrated into any production line. As the EV and battery industries pivot towards advanced battery components, Addionics 3D Current Collectors are emerging as a key player to ensure the next step-change in the performance and longevity of EV batteries. Consequently, with Addionics’ technology, it’s easier to get the gold that everyone is looking for.