Andrew Draper reports from BCI’s centenary convention, where there was much celebratory back-slapping, merriment, words of caution about the future but an optimistic outlook.
Battery Council International’s centenary convention heard an upbeat assessment of the association’s first century with a call for more political lobbying. There was a positive view of the impact of the lead battery industry on the US economy.
In opening the convention, BCI Chairman Chris Pruitt pointed out that nearly 48 million US jobs rely on the battery industry. BCI quotes research that the battery industry in 2021 represented some 20% of the $8.1 trillion domestic economic output.
“Manufacturing and recycling of batteries is a big part of that,” Pruitt told his audience. And some industry segments, such as data centres and telecoms, did not exist 100 years ago. Some were not significant just a decade ago, but will be an important part of the industry in the future, he said.
The convention was held in Fort Lauderdale, Florida, and attracted over 800 registrations (up from 625 last year). Pruitt told the convention of two significant developments:
- the setting up of the BCI Foundation, which will provide educational assistance to students looking to get into the electrochemical sector
- an increase in political lobbying.
“This year we will be working on new initiatives reaching out to the government,” he said. “There will be a push to reach policymakers.” The aim will be to connect with them and get them to understand the battery industry’s blueprint for manufacturing.
Pruitt, CEO of East Penn Manufacturing, later elaborated on the BCI Foundation and told BEST that US tax rules prevent BCI from giving grants to students, whereas the foundation – a bit like a charitable trust – could do that.
BCI would solicit funds from its members and others for the purpose. “We would pool that money and make decisions on allocating to applications from students. We will favour those who want to go into electrochemistry,” he added. He said it will start out small and hopefully become big, perhaps with assets of $500,000.
In a ‘fireside chat’ session on the first conference day with CEOs from Enersys, Crown Battery, Clarios and East Penn, the question of money and lobbying was raised. Hal Hawk of Crown said he makes donations to politicians on both sides of the divide so he has someone to call on if he needs help, regardless of who is in power. He admitted to “riding the fence” politically.
Pruitt emphasised in that session the value of inviting politicians into battery plants so they can see the industry first hand and understand it better. To get their help later, that may mean making financial donations to politicians’ campaign funds, he said.
Regulation victory claimed
BCI president Roger Miksad said the association’s efforts to convince regulators in the state of California to compromise on occupational health and safety rules governing lead had paid off – air particulate permissible exposure limits and blood lead levels. Work has been ongoing since 2010, he pointed out.
He said things generally spread from California to the rest of the country. BCI has been working intensively to convince regulators in the state that draconian measures are not necessary and that the industry can be trusted.
In the fireside chat, Hawk acknowledged that regulation will always be there and will be complied with, but said his company – from Ohio – was cautious about California, which he called “a whack job”. He went on, to audience laughter: “They have been smoking medical marijuana before it was legal, but they try to set the standards and from then everything goes east.
“So the standards they’re proposing, and I appreciate zero gas emissions and all that, but it’s just not technically or economically feasible to do some of the things that are happening. So that’s where we need the help, because these kind of legislative moves by people that … don’t know anything from anywhere, they don’t do their homework or nothing. It just does what sounds good. If it sounds good, pass it but not everything that sounds good is good.”
The discussion also touched on how squeezed supply chains and labour shortages were leading companies to examine efficiencies and increase automation out of necessity.
The money
On the subject of finance, the cost of the centenary convention and celebrations was not much talked about in public, and Miksad declined to disclose any financial information when BEST asked.
Hal Hawk, president and CEO of Crown Battery, let slip some insight though. He also wore the hat as campaign chairperson for the hundredth anniversary. “Not many organisations last to be 100 years old,” he said, before outlining events planned over the coming days.
“So the Tuesday night reception, we were just a tad over the budget, just a tad. Now normally we always budget for the reception, but we went a little bit over that, so we had to make some phone calls with some people. And so when you look at your brochure, you’ll see the… Centennial Leadership Circle. We passed the hat and we raised $670,000 by passing the hat voluntarily in order to help pay for the Tuesday night party.”
That included plenty of food, drink, live music from American alt rock band the Gin Blossoms (they had a string of hits in the 1980s and ’90s), and a picturesque setting next to the sea. The gig showed who the aging rockers of the battery industry were. Word had it the band was Hal Hawk’s idea, but Terry Murphy, Hammond’s outgoing CEO, was at the front of the crowd enthusiastically singing and dancing.
Sponsorship deals were made available, ranging from network lunches ($7,500), providing a phone charging station ($4,000), delivery of marketing material to attendees’ hotel rooms ($3,750). And for $6,000, one company could even be the exclusive sponsor of the event wi-fi, which worked well until everyone wanted to go online at the same time in the coffee breaks.
Keynote
James Martin, who leads the automotive consulting team for the Americas at finance firm S&P Global, gave a rapid overview of the history of the battery in his keynote to the convention:
- batteries were first fitted to the then dominant electric cars in the late 1800s (yes, they came before the ICEs)
- in the early 1900s, the ICE began to prevail and the electric starter locked in the lead-acid battery
- in the 1950s new technology came in (key-operated ignition, window defrosting etc)
- stop-start batteries were a watershed, after which 42 and 48V systems emerged
- now, lithium is emerging as potential chemistry for low-voltage batteries.
Martin said the big battery players from EV maker Tesla are 12V and 48V lithium-ion batteries, with the 48V battery growing at a faster pace. Any new platforms Tesla develops are going to be on a 48V low voltage architecture supporting their high voltage batteries. Others may follow, he added.
This suggestion caused some surprise in the audience. Norbert Maleschitz, COO of East Penn Manufacturing, told BEST he was sceptical about Martin’s claim about Tesla. “I don’t share the view about Tesla. We’re talking to North American OEMs who are asking for lead.”
He said big trucks need 48V batteries for main power. “But 48V as an auxiliary battery? I don’t know about that. We’re not hearing that.”
He said Tesla is a relatively new company with little history, which may explain its unusual development.
Martin added: “We think that 48V lithium-ion is kind of here to stay just because of Tesla. Tesla is roughly 50–60% of the EV market in North America, depending on what month you look at sales. They’re building about two million vehicles globally per year. And all of those vehicles, once we get into the ‘29–30 timeframe when they’ve had a chance to refresh their architectures are going to be 48V. So we’re expecting to see a significant growth in 48V lithium-ion.”
Martin went on to say the tipping point in favour of EVs from ICE vehicles is now expected to come around 2032–33, rather than 2030, as expected a year ago. The recent slow-down in growth in EV adoption will extend the lifecycle of ICE-based vehicles, including hybrids and plug-in hybrids, he said.
The market
Rebecca Conway, marketing director at Clarios, gave a snapshot overview of the transportation market. She said 2023 was a strong year for the battery market and noted growth in both original equipment and aftermarket sectors.
Based on the BCI members’ shipment forecast, Conway said shipments of AGM batteries for automotive in North America are forecast to have hit 104 million units in 2023, rising steadily to an expected 115 million in 2026. AGM technology is the biggest growing lead battery technology, though its growth rate is set to ease from 15.4% in 2024 to 12.8% in 2026.
AGM batteries are now the leading lead-acid battery technology, she said. Fundamentals remain strong, with a growing and aging car park that will need battery replacements.
She argued that the battery market will continue to shift to higher performing batteries. They will reflect the transition to start-stop, hybrid and EVs.
How things go wrong
In her slot, communications head of Stryten Energy, Melissa Floyd, gave a run down on how things can go wrong. Photographic company Kodak successfully celebrated its centenary in 1980. But it then failed to meet the challenge of market disruption and eventually went bankrupt in 2009, she said.
It went bust, she said, because digital technology disrupted an entire ecosystem. Today’s energy storage disruptors are electrification, new battery technologies and market headwinds. Business models are changing, global competition is fierce and led by China, she said. Headwinds include workforce challenges, regulatory burdens and a weaker economy.
She compared the lead battery industry to Kodak. Both dominated their space for 100+ years, underwent technological shifts and faced increased competition. Kodak focused its investment and innovation and got it wrong. “We have to get it right,” she said.
