WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 65
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1.
There is money to be made in batteries, but market
conditions need to be right for this to happen.
2. In the regions such as North America, Europe and Australia,
making money in EV batteries will depend on the extent
to which governments consider this a strategic industry
and protect companies from fierce Chinese competition.
Global Energy and
Isobel Sheldon
Obe
Utilities Leader
Founder and Principal
Vice President
Consultant
Capgemini Invent
Oakpolytech
Pete King
3. Making money by attaching batteries to the electricity grid
is also possible but relies on regulators establishing the right
market conditions and taking a long-term commitment to
maintaining them. Stationary grid battery technology will
follow where automotive manufacturers lead.
4. It’s clear that we can’t hit net zero without batteries, so
work is needed to make them an attractive investment.
Pete King leads the Global
Energy and Utilities sector
for Capgemini Invent. He
focuses on new business
models, transformational
programs and developing
digital platforms for clients
across Europe, APAC and
North America.
Isobel Sheldon OBE has been
a leading figure in advancing
battery technology to
support the decarbonization
of energy and transportation
for over 22 years. She
offers industry insights
and consultancy services
to companies aiming to
leverage opportunities in
the global energy transition.
Introduction
There should be many ways to make money from a battery:
sell it to a motor manufacturer; attach it to the grid and export
electricity for more than it costs; sell it to homeowners to go
with their solar panels; put it next to a windfarm to avoid
curtailment issues when the network cannot cope.
Yet, around the world, many are struggling to make money, and
plans are being re-evaluated. Having batteries in the energy
system helps us to decarbonize carbon-intensive use cases,
like transport and home heating. They also make renewable
energy more predictable and usable.
Despite a brief increase in 2022, battery costs have been falling
consistently for a decade and are now at 20% of their cost from a
decade ago. The business case should be accelerating. There are
cases of money being made from batteries which provide clues
of how good returns can be made. Tesla has six gigafactories
and its automotive business is making money. Texas is planning
to install over 6 GW of capacity this year and the Hornsdale
100 MW Big Battery in South Australia has been operating at
good margins.
The role of China cannot be ignored as, China currently accounts
for about half of global production, with plans to increase this
share to three-quarters by 2030. With one player so dominant,
questions need to be asked about what other countries and
businesses should do to respond.
However, governments and regulators are not uniformly
creating the environments required for batteries to thrive.
WEMO 2024
How to make money from
a battery
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