The strong growth in the battery and energy storage industry will offer rich pickings, despite constraints and setbacks, according to speakers at 20ABC. Andrew Draper reports.

Conference chair Mark Stevenson opened the 20^th Asian Battery Conference (20ABC) by saying the Covid-19 pandemic had shown what batteries meant to countries. The lock-downs and subsequent supply chain issues had cast all this into sharp relief in a way no-one had anticipated.

Some 45 speakers shared their expertise and insight into technical and commercial aspects of an industry undergoing change and growth. Several speakers pointed to the market potential. Alistair Davidson, director of the Consortium for Battery Innovation, called the opportunities for the lead-acid battery industry “a golden age for battery technologies”.

The event followed straight on from the 8th International Secondary Lead & Battery Recycling Conference, also in Siem Reap. A record 734 people attended ABC20 from 42 countries and 319 organisations.

The market

Neil Hawkes, principal analyst for lead at research body CRU, said the gap between government pledges and action needs to close if there is to be a chance of reaching net zero emissions by 2050. And doing that requires nothing short of “a total transformation” of energy systems powering the global economy.

Energy supplies must change to be dominated by renewables rather than by fossil fuels in order to reduce CO₂ emissions to zero by 2050. “The International Energy Agency states what needs to happen, which is not necessarily what will happen,” he told his audience. He noted how CO₂ emissions are rebounding sharply from the Covid-19 pandemic as economies recover.

The transition of vehicles from internal combustion to electric is firmly embedded in the automotive world, he went on. CRU believes the tipping point where the ICE share falls below 50% is in the late 2020s, falling from 90% in 2020 to 34% in 2030 and 15% in 2040.

As long-term demand for renewables’ contribution to power grids grows, opportunity for cheaper, lead batteries could gain market share in reserve power energy storage systems (ESS) amid surging lithium battery use, he said. “It could make it cheaper to make lead-acid batteries. A multi-battery chemistry solution is the answer and lead is part of the solution, not part of the problem,” he said.

Lithium batteries continue to take share away from lead batteries in industrial (fork-lift) trucks and e-bikes on motive power side and in UPS (data centres) on the reserve power side, he noted.

Dong Li, founder of Leoch International, said the growth of China’s lead-acid battery industry has been constrained over the last five years by the rise in lithium-ion battery demand. “If we don’t develop and produce lithium batteries, it will be difficult for us to compete in the marketplace,” he told the audience.

He said companies like GS Yuasa, Clarios, Exide (India), Amara Raja, Tianneng Group, Chilwee, Camel and Leoch are investing in R&D to improve the performance and efficiency of lead-acid batteries. They are also expanding their production capacity to meet the growing demand. The lead-acid market in the Asia Pacific region alone was worth around $32 billion in 2022, compared to $50 billion for the entire global market.

Matt Raiford, senior technical manager at the Consortium for Battery Innovation, shared data from the International Energy Agency that battery energy storage capacity (BESS) would reach 585GW by 2030, up from 148GW in 2025. “The numbers we see are increasing in every major region. It shows vital growth,” he said. The growth is being backed by hundreds of billions of government finance, he added. And the predicted need is roughly the current size of the lead battery industry.

He said there is strong market potential for lead batteries in BESS applications at large and in the key developing market of EV fast charging buffering. This entails use of a battery storage system, which reduces the impact of EV chargers on overall power demand and any grid constraints.

For ESS without EV buffering, there is a real opportunity for $2 billion in BESS sales, he said, and a similar market for EV charging with buffering of $1.2 billion. That is assuming lead batteries capture 10% of the potential market, he said.

Realising that potential means increasing performance of lead batteries in ESS, supporting productisation, securing project funding and communicating benefits to key stakeholders, he added.

Raw material constraints

Huw Roberts of CHR Metals said constraints on availability of critical “new energy” raw materials and lithium batteries may make the transition to battery EVs slower than currently forecast. And while the market is subject to tightening environmental regulation, especially in Europe, there are rich pickings to be had.

“Capturing only 5% of new forecast battery storage installations required by 2030 could add between 1.5 tonnes and 2 tonnes to lead demand over the next seven years,” he added. “That’s a pretty impressive number.”

He referred to the surge in renewable energy generation, much of it offshore or far from the point of final demand. That needs extensive submarine, high voltage direct current power cables. Two projects in particular – linking Morocco to the UK, and Australia to Singapore – could require 300,000 tonnes of lead in cable manufacture.

Batteries to power e-bikes and e-trikes in China currently require 2.5 million tonnes of lead per year. He sees a huge expansion of demand in Asia for two and three-wheel e-mobility.

European regulation

Steve Binks, regulatory affairs director of the International Lead Association, gave the conference an overview of the new EU batteries regulation, which was adopted in July. It replaces the current batteries directive of 2006 and will apply to all battery types, including portable, industrial and EV, as well as starting, lighting and ignition, and light transport batteries.

Binks said the regulation aims to secure the competitiveness of the EU battery value chain and the EU is the first body in the world to bring this in. It will provide the EU with a unique selling point, he said.

While requirements will be phased in over the next decade, secondary legislation is yet to define all operational details. However, lead-acid batteries could be one of the first areas to be considered, he said, a matter which causes concern.

By mid-2031, rules are to be in force on the recycled content of batteries: 16% for cobalt, 85% for lead, 6% for lithium and 6% for nickel. These thresholds are set to rise further by 2036 and become even more challenging for companies, he said.

“There are concerns about the due diligence requirements,” he said. From 18 August 2025, economic operators putting batteries on the market or into service must fulfil due diligence obligations for cobalt, nickel, natural graphite, and lithium, and have that due diligence verified by a third party, he said. It is very much about ESG requirements.

“Numbers aren’t achievable”

“Everyone’s told them the numbers aren’t achievable,” Binks said. “The EU hired consultants and the numbers they came up with are less ambitious than what the EU settled on. It’s a political instrument.”

UK law firm Fieldfisher issued a paper in October stating the new regime will have “a significant impact” on manufacturers of battery-operated products, appliances, and vehicles, as well as on the battery industry as a whole. “Steps to prevent enforcement actions should be taken today,” it said.

India: potential stationary energy storage of 407GWh

Debi Prasad Dash, executive director of the India Energy Storage Alliance, gave a whistle-stop tour of the Indian battery market. He said the potential stationary energy storage between 2022 and 2030 was 407GWh. The biggest segment is inverter back-up with 42% of the total.

In 2020–21, the slowdown in the roll-out of telecom towers during the pandemic hit both lithium-ion and lead-acid battery segments. However, the storage market growth for telecom towers up to 2030 will be offset by increasing grid reliability and availability, improvement in energy efficiency in telecom equipment and penetration of 5G technology, he said. Annual installations are expected to hit some 10GWh, he added.

A lack of funding and infrastructure support are the main reasons why lead-acid batteries are still the preferred option in microgrid energy storage, he said. “We’ve seen more government projects come out with lithium-ion and other battery chemistries, and a greater adoption of these is expected in the coming years.”

In the EV market, two and three-wheelers remained the dominant sector in 2021. He said electric 2W and low speed 3W or e-rickshaws use lead-acid batteries. This market is estimated to be 5.6GWh in 2022 and is likely to sustain 5–6GWh until 2030.

The total forecasted cumulative battery demand for EVs is for 461GWh between 2022 and 2030, and lithium-ion technology is expected to make up 406GWh, he added. “The market is expected to gain momentum rapidly after 2024–25, as upfront cost of EVs is expected to achieve parity with ICE vehicles due to the drop in battery prices along with improvement in EV technology, local manufacturing, and economies of scale,” he said.

He shared analysis from energy consulting body CES forecasting EV market growth at a CAGR of 49% between 2021 and 2030. The demand for EV batteries is expected to grow at a CAGR of 41% by 2030.

Dash said there is potential for at least five gigafactories in India, with a cumulative capacity of 50GWh immediately. Investment in each would be about $1 billion.

Subhankar Chakraborty and Indrajit Majumdar of Exide Industries’ R&D Centre presented a paper on lead-acid technology for e-rickshaws. They showed testing that concluded voltage drift is the main reason behind mileage reduction from single charges. It is bolstered by varying deep depth of discharge cycling with limited recharge.

They said more work needs to be done in the area of negative active material (NAM) rechargeability through NAM additives and production technology.

Low-cost battery management systems for lead-acid batteries may also provide a good working solution to address the problem, the conference heard. Exide is open to joint development work with partners on this, they said.

The conference heard many interesting technical presentations, too many to mention them all, ranging from separators and high temperature endurance testing, new additives for VRLABs, improving AGM in lead-acid batteries, gelled electrolyte, extending battery life in energy storage, and production line equipment improvements. Delegates left with a buzz.

Thanks to the fixer

One key element in the success of 20ABC lies in its meticulous planning. And a key figure in that is Chhoeum Savery, area sales manager at the Siem Reap Sokha Resort & Convention Centre hotel, the conference venue.

She handled all the enquiries regarding the conference on behalf of the five-star hotel on the outskirts of Siem Reap. She speaks Khmer, English and Mandarin and has worked at the hotel for nine years.

Savery is the lynchpin who dealt efficiently with customs officials and bureaucrats to get exhibition equipment safely to the hotel, and on time.

“She got your magazines in and all the exhibitors’ gear too,” conference chair Mark Stevenson told BEST. She explained it often took “many, many phone calls” to achieve that, sometimes at unsocial hours.

BEST thanks Savery for her invaluable assistance in getting our magazines to the hotel in good time for the conference.

Chhoeum Savery, area sales manager at the Siem Reap Sokha Resort & Convention Centre hotel, seen with ABC conference chair Mark Stevenson.

Valuable funds for Angkor children’s hospital

The ABC exceeded its $20,000 charitable fundraising target for the Angkor Hospital for Children to fund a bed on the oncology ward. The hospital, based in Siem Reap, gets no state funding and runs entirely on charitable donations, according to senior fundraising officer Fabienne van de Loo. Its annual budget is $5.5 million and has registered fundraising charities in the UK and US.

Conference organisers worked on the “One Minute Giveback” fundraiser aimed at ABC participants in conjunction with Sorfin Yoshimura, which supplies equipment and services to the lead-acid battery industry.

The paediatric teaching hospital, which has 47 doctors, 95 nurses and 80 beds, serves the needs of children throughout Cambodia. It trains students and health workers and emphasises the value of its Cambodian leadership and workforce. It receives international voluntary support from medical consultants.

Van de Loo explained the hospital offers a range of services for conditions including cancer, asthma, epilepsy and mental health. Emotional, nutritional and financial support are offered too.

“We have specialist oncology doctors and 15 beds on the oncology ward,” she said, adding that not many Cambodian hospitals offer this speciality. If children are malnourished when admitted for cancer care, they are fed until they are strong enough to receive treatment, she said.

The hospital states on its website: “Over the last 20 years, healthcare in Cambodia has improved significantly. However, children still die from preventable causes. Access to quality healthcare within Cambodia is not yet universal. There is a lack of care available for children with long-term, rare or acute conditions – particularly for those in the poorest and most remote villages.”

Mark Richardson of event organiser Conference Works told BEST: “Once all the payments arrive, we will have $21,812 directly raised to 20ABC. Some additional donations and pledges went straight to the hospital website donation page, cash onsite and pledges onsite (the Tree).”

As of mid-September, the total confirmed by Van de Loo was $21,932.

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