Batteries – Key Enablers of Tomorrows Technology, Energy Transition and Mobility
There are immense investment opportunities along the battery value chain. Batteries will take part in the solutions for tomorrows technology, energy mix and mobility. A decade ago, new inventions like smartphones and laptops followed by numerous other consumer electronic gadgets were enabled by batteries. Electric vehicles (EVs) are here to stay, with Norway in the adoption forefront and the largest economic power countries of the world adopting EVs at an exponential rate. The next stage will be energy storage solutions that will enable flexibility for power generation and renewable energy utilization for a more sustainable world. Perhaps batteries could even play a role in future air mobility.
Last month, I got the pleasure of touring the facilities and meeting with top management of numerous companies within the battery space, from startups to large players, spread across the value chain. These included Tesla, Volvo, Freyr, Morrow Batteries, ChargePoint, Zeekr, Vianode and Northvolt.
Visits like these are important in a portfolio investment perspective to widen our horizon beyond financial calculations and research getting to see the technology, operations and interact with key employees and management on a firsthand basis. Additionally, traveling with a diverse investor group gives us the advantage of comparing notes and discussing our takeaways within the group throughout the company visits.
The Worlds Greenest Batteries
Northvolt, located in Skellefteå, Sweden, was one of the companies we got to visit. The company is Europe’s first homegrown battery gigafactory with the aim to produce the worlds greenest batteries utilizing a fossil free production and recycling on-site. They have a customer base within the EV premium segment. The next wave of focus for their battery solutions will be geared towards energy storage, then air mobility.
Tesla – At the Electric Vehicle Forefront
Our final stop was Tesla’s gigafactory in Berlin, which, in 2022, delivered the first European produced Tesla to the market. We got to see their giant casting machines, the Giga Press, which makes car bodies with just a few massive casted parts, which is unique to them. Tesla’s Model Y became the world's best-selling car in the beginning of the year, which was the first time an all-electric vehicle claimed the top spot.
Battery Storage is Vital in the Energy Transition
We believe battery storage will be a key element in the ongoing energy shift with its ability to smooth the energy availability profile. It is part of a trio of interlinked solutions together with renewables and EVs that can enable a material reduction in emissions in electricity, heat, and transportation, which are sectors that contribute to two-thirds of the global emissions today.
