Strategies to Excel in the Battery Manufacturing Industry

Machine and equipment manufacturers have a chance to supply gigafactories in the wake of rapidly growing battery cell demand.

FREMONT, CA: The beneficial funding environment is advantageous for equipment manufacturers with expertise and capability in producing battery manufacturing equipment. It may be advantageous for others to pivot their competencies to capture this opportunity.

Assembling cells involves punching, stacking, winding, welding, and sealing, which are comparatively less battery-specific and more common in general manufacturing and automation. Machinery companies transferring their expertise and skills can take advantage of the growth opportunity in battery cell manufacturing equipment.

Battery cell equipment manufacturers can develop the competencies necessary to compete effectively in the market by following four pathways:

Manufacturing sustainably: Companies need to analyze which of their current skills and competencies can easily be adapted to battery manufacturing processes before choosing which opportunities to pursue based on attractiveness and fit. A manufacturer may pursue a whole manufacturing process or a subset of steps within another process, such as electrode manufacturing, cell assembly, or cell finishing. It is essential to allocate sufficient management attention and resources to the organic development process to accelerate the time to market.

Acquisition: It is possible to buy all or part of an existing battery manufacturing equipment company to fill gaps, assuming the target has the required competencies and resources and can properly integrate into the existing operation.

Establishing strategic partnerships: Equipment manufacturers can build competencies in battery equipment by collaborating with other companies. One popular approach is establishing a local footprint and increasing capacity through a partnership with a foreign supplier of cell manufacturing equipment.

Establishing joint ventures: Companies can develop competencies in a dedicated new entity when the partners have complementary skills. The entity can develop new expertise, and all partners devote sufficient resources and attention to it.

Entry: Manufacturers considering entering the battery equipment market have many options, and manufacturers must move quickly to stay in this lucrative market. As gigafactory construction plans, advances and financing solidify, now is the time to leverage market opportunities. Companies can determine whether they can serve this new market demand or transfer or pivot adjacent expertise after carefully analyzing the competencies required at each step and substage of the battery cell manufacturing process.