Digatron, the battery testing equipment company, is expecting the 75-25% split in business between lead-acid and lithium to reverse over the next decade in the US.
Björn Stoll, President & CEO at Digatron Power Electronics in the US, said in an interview with BBB that Digatron’s business in the US is 75% lead-acid and 25% lithium. That split will in time reverse, he said. The amount of revenue for lead-acid will remain constant though, he added.
Digatron’s revenue expansion is partly being driven by the growth of the electric vehicle (EV) charging network. He said: “I would say the peak will be in four years and then it (the charging network, ed.) will be relatively stable.
“The battery industry is 10 years behind Europe. I would say in the lead-acid industry, it’s relatively stable now. Lithium will grow, and according to the statistics it’ll grow over the next 10 years.”
He said there are a lot of new players in the market, and all need testing equipment. There is a big variety in types of lithium batteries emerging, and this represents a big opportunity for a testing company’s products.
Digatron invests a lot of resources in supporting academic and research institutions with testing equipment.
“The idea is that the universities and the students are getting used to using our equipment and our software and once they’re out of the university, they’re using it in their labs in the production lines,” he said.
“And then secondly, it’s quite interesting to see what is going on in the industry and not to be behind the trend of new technologies, new methodologies, and also to see what the universities are planning. Because, you know, development time is also something which is a game changer.
“Some of the companies are quite quick and if you are not quick enough, you will lose to the market.”
South America good bread and butter lead-acid business
The company also supplies Canada and South America from its US base. “South America is 10 years behind the United States. So therefore, we have a good bread and butter business in the lead-acid industry, which is our focus in core competence as well,” Stoll added.
The market for forklift trucks will remain focused on lead-acid, he said, as the heavier batteries add balance to the vehicles.
The development of the EV market in the US is 5–10 years behind Europe due to longer driving distances and less charging infrastructure, said Stoll. But it represents growth potential for Digatron, which also makes chargers, he said.
Stoll said Digatron has 7,500 customers in the US, ranging from laboratories and universities to battery manufacturers, car manufacturers and OEMs. “This is where we are in battery storage providers,” he said.
Digatron in the US counts major industry names such as East Penn, Rivian, Ford and Volkswagen. Tesla is not among them though, he said. The two have had a project together but Tesla produces its own testing equipment.
Stoll sees the main opportunities for Digatron as being in testing formation, end-of-line testing, ageing, pilots and cell assembly lines, which it produces.
