Five lead-acid battery industry companies have formed a new alliance so they can get a slice of the action in large funding projects and to raise their profile in non-lead chemistry markets such as zinc and flow. They also hope their grouping will provide a defence against oblivion by being too small. Andrew Draper reports.
The five, called the Energy Storage Equipment Manufacturing Alliance, or ESEMA, comprise Sorfin Yoshimura, MAC Engineering, CMWTEC Technologie, Digatron and Kustan. They have incorporated a company and each holds a 20% stake.
“So you put us all together and we have the capabilities of maybe 70% of everything that’s needed to design a full production facility if we wanted.”
Other companies can be brought in on a project basis, he said. The next step is to identify partner organisations to raise visibility and to tackle pains in the lead-acid industry, he said.
Less worried
“I think with the amount of demand, if you look at global development of just more and more folks getting into cars, getting onto motorcycles, off bicycles and things like that around the world, there’s still a lot of upward trajectory for transport vehicles of all kinds.
“Take a look at renewable energies or data centres that are only going to be bolstered by things like 5G and AI. You’re going to see a tremendous need for back-up power like UPS, stand-by power and things like this. You know, there’s not going to be enough lithium in the world.” Demand is outstripping supply and LFP from China will not be able to meet that demand, he said.
Hennen said the opportunities are great and require a collective response. “That can’t be dealt with by one entity, but also because we’re all lead-acid guys, generally speaking, with the exception of probably Digatron, is to take our skill sets and apply them to other chemistries and other opportunities.
“And the biggest deal is most of the funding available through the EU, through the UK or through the United States Department of Energy has a minimum threshold for participation. And our companies are too small individually to be able to even participate in a project that’s funded. So by putting our companies together and then having key strategic partners, we’ll be able to go after some of those funded opportunities.”
He said ESEMA is already working on its first project, a new machine for the lead-acid market. He declined to give details.
Defensive against irrelevance
The alliance is also defensive in purpose. Hennen added: “Frankly, I think we’re all relatively healthy today as individual companies. But what we have identified as small business owners is that there is probably another consolidation in the industry coming. And that if we don’t start working together, the larger players, whether or not it’s on the lithium side or on the lead-acid side, it will make us irrelevant.”
Fink added: “I think the idea is for all of our organisations that have grown and blossomed through the lead battery space, in the same ways that our customers, the end users, have tried to become agnostic to chemistry rather than be lead-acid battery makers.
“They wanted to become more energy storage providers and then have different solutions based on customer application.”
ESEMA members would like to have products and services for any chemistry. “Therefore, we can cater to our existing customers as they evolve, as well as hopefully be opportunistic to get involved in new industries.”
He sees demand for energy storage of all chemistries being strong for decades, including first and foremost lead.
While Fink does not expect ESEMA members to merge, he also believes a new wave of consolidation is coming. He said: “I think we’re already seeing that pattern. I mean, you’ve seen TBS has put together a greater alliance of late and obviously companies like Wirtz, Sovema and others have done their bit of acquisition over time.
“So I do believe that we do need more consolidation from the supply side in the battery space in order to take on the challenges of the next generation. I expect acquisitions, I expect alliances in order to be able to accommodate that.”
That does not mean Sorfin is running around with a cheque book to buy companies but it is actively looking for partnerships and synergies that enhance value – such as a global network of partners. One of the advantages of ESEMA is that its constituents have a network of vendors on both the machine and material side, any of whom can be brought into projects.
They are in touch with a range of alliances and consortia in both lead and advanced chemistry with whom they can collaborate on projects and raise the profile.
Being selective
Projects are “quite a lot larger” than they were a decade or two ago, and becoming more complex, according to Fink. ESEMA is in contact with trade associations such as NAATBatt and others, but it is being selective with whom and what it engages.
He sees niche opportunities as the way ahead, helping existing battery makers to scale up. Giga-scale projects are not on the table right now, he said.
Hennen said the idea of the alliance was born over a beer with MAC president Doug Bornas at the European Lead Battery Conference in Lyon in 2022. The alliance was sealed with a deal done at last year’s Asian Battery Conference in Siem Reap, Cambodia.
UK engineering company TBS Engineering announced two strategic tie-ups with European lead-acid battery companies in April 2024. It partnered with H&T Produktions Technologie of Germany and Pinco of Switzerland.
The stated aim is “optimising for linear process dependency to produce energy storage products with superior energy density, improved cycle life, better quality, greater efficiency, and enhanced sustainability.”
Shep Gerrish, vice president of electrodes and formation at TBS, said response to the new ActivMat electrode manufacturing line portfolio, launched in September 2024 at the European Lead Battery Conference, has been “enthusiastic”.
It launched four new TBS ActivMat products in 2024, including a paste mixer, flash dryer, curing chambers and servo spindel press.
TBS said in a statement the ActivMat commercialisation plan is on schedule and has strategic support of senior management at parent company Marmon Holdings, a Berkshire Hathaway business.
