Like its fellow Norwegian-founded peer Freyr, Morrow is – at the least with its first section – primarily promoting into the vitality storage system (ESS) market. It’s promoting lithium iron phosphate (LFP cells) to system integrators working within the industrial and industrial (C&I) and residential software segments. A kind of introduced final yr was Eldrift.
In an interview on the Giga Europe convention in Stockholm this week, COO Andreas Maier defined why the corporate had gone this route, and the way it anticipated it keep aggressive in that market contemplating the value falls from Chinese language suppliers and ESS’ lack of incentives to make use of European cells (in contrast with the EV market).
Giga Europe was placed on by Benchmark Mineral Intelligence and introduced collectively the continent’s battery provide chain, together with gigafactory corporations, essential materials producers and merchants and people lively in financing.
Faster path to ESS market
“It’s concerning the the accessibility of the ESS market. Automotive clients have for much longer lead occasions for qualifying batteries to their platforms, it might be a five-year lead time,” he mentioned.
“Staying aggressive – that’s a problem for the market which is now flooded with low cost Chinese language LFP batteries. There’s nonetheless a chance for us to work with smaller corporations not essentially served by the large suppliers; particularly mid-sized corporations that put an emphasis on sustainability and independence from the Chinese language provide chain.”
Gigafactories in Sweden and Norway can profit from having the ability to obtain 100% renewable vitality from hydropower, with vitality an enormous portion of a gigfactory’s carbon footprint.
Nevertheless, Morrow nonetheless must supply its cathode lively materials (CAM) for LFP batteries from China. “The LFP provide chain is extremely Chinese language. Nevertheless, we’ve got a second era chemistry we’re taking a look at and speaking to clients about, which is LNMO (lithium nickel manganese oxide). The LNMO provide chain is rather more European, and we may produce the CAM for that.”
Like every battery producer concentrating on the ESS market, there may be additionally a chance to enter full ESS provision contemplating the cell is the largest single a part of that value. Maier: “For the time being we’re appearing as a cell provider however we’re taking a look at strategic partnerships and possibly even a three way partnership to grow to be a full ESS provider.”
Wider market
Maier spent six years at South Korea-headquartered Tier 1 battery provider Samsung SDI from 2012 to 2018, so is well-placed to debate the how aggressive Europe will likely be with suppliers from China and East Asia at a high-level (on high of his feedback about Morrow’s personal aggressive technique). That competitiveness with each China and the US was a serious theme on the Giga Europe occasion.
“Should you take a look at the European gigafactory market’s incumbents – Northvolt, PowerCo, ACC, Verkor, Morrow – I feel they’ll take their market share to the extent of the GWh capability they’ve introduced,” Maier mentioned.
“Whether or not they’ll additional scale will rely upon how environment friendly these amenities will likely be scaled and the way effectively they’ll function. There’s additionally European manufacturing by Asian makers – the Korean corporations are strongest however the Chinese language and others are additionally coming in. How a lot they scale will likely be based mostly on how a lot the European ones do.”
Maier claimed that the European premium for lithium-ion battery cells will solely be 10-15% in comparison with Chinese language ones, a bit increased within the ESS market due to the decrease volumes, and that he anticipated that distinction to remain related over time. One ESS participant mentioned the premium for European cells is extra like 20-65%, even increased proper now due to the dearth of capability.
All main European gigafactory tasks are supported by a giant European automotive OEM (unique gear producer). These European automotive OEMs over their historical past have moved away from manufacturing elements to procurement elements and assembling them with their know-how know-how.
“Their function in battery manufacturing marks their re-integration again into manufacturing, although it’s not clear what their technique is. However you can see it as a long-term sport to finally do their very own manufacturing. In the event that they don’t, I think about a sure share of their cell procurement will likely be from current suppliers in East Asia.”
Morrow’s foremost shareholders are Norway-based vitality group Å Energi, PKA (Maj Make investments), Siemens Monetary Providers, ABB, and Nysnø
![Morrow Batteries COO Andreas Maier.](https://www.energy-storage.news/wp-content/uploads/2024/03/image-9.jpg)