Business | September 13, 2012
Strong market potential for standardized Li-Ion battery systems
Nearly all cell phones, laptops or MP3 players currently run on Li-Ion batteries. And the emerging trend toward e-mobility is hardly conceivable without the use of Li-Ion batteries in vehicles.
Compared with traditional electricity storage solutions (like NiMH or lead batteries), Li-Ion batteries offer significantly longer product life and much higher energy efficiency. Yet Li-Ion technology has by no means reached its full potential. This finding emerges from a joint study by Roland Berger Strategy Consultants and the German engineering association VDMA. It concludes that the way forward in developing this potential is standardization. Action is urgently required to establish a standard for modular Li-Ion batteries with the widest possible industry reach. "As a rule, companies can't turn a new technology into industrial applications without first having to shoulder high development costs and up-front investments," explains Dr. Thomas Schlick, Partner at Roland Berger Strategy Consultants. "It's crucially important here to build up a critical mass of users of the new technology as soon as possible." But that presents smaller industries and smaller companies with a problem. Experience shows that they can reach critical mass only very slowly. "This situation makes investments by individual companies a lot more risky," says Schlick. "Only when as many manufacturers as possible join together can companies make the costs of development and initial outlay pay." This certainly goes for the Li-Ion technology. Although Li-Ion is far superior to traditional battery technologies, the business case still doesn't add up for many companies. As part of the solution, VDMA recommends a joint initiative coordinated by the association. "Looking at the Li-Ion technology segment, we can observe two strategies now being pursued to minimize costs and risks," notes Bernhard Hagemann, Director of VDMA E-mobility Forum E-MOTIVE: "On the one hand, we find companies looking for individual alliances within their industry. On the other, there are also a lot of firms trying to create general cross-industry standards for Li-Ion technology – but without any certainty as to the result. This is where the industry associations can come in. Especially in sectors with a strong SME presence, the associations can step forward and coordinate joint R&D efforts at the pre-competitive stage to get the new technologies in shape to penetrate niche markets. This is the challenge we've taken on at VDMA." Wide spectrum of applications with high market potential The range of applications for Li-Ion technology is indeed quite remarkable. "We've so far seen this technology being used almost entirely in consumer electronics and, more recently, in the automotive sector. But Li-Ion batteries offer potential solutions in all sorts of other applications – delivering real benefits to users in, say, leisure boats, forklift trucks, cleaning equipment or mobile power sources," says Schlick. Li-Ion batteries can also be deployed for stationary storage. Completely new possibilities are being created not least for operators of systems that generate renewable energy (e.g. solar installations). "Our study estimates that the new Li-Ion battery applications alone will generate a market volume of EUR 4 billion by 2020 – a figure that does not include rising sales in consumer electronics or automotive," says Schlick. Standardization: key to new business models To leverage the new sales potential successfully, VDMA proposes a standardized and modular system for Li-Ion batteries. A standard of this kind does not currently exist, but Hagemann is convinced it can be defined: "In terms of technical requirements, the various fields of application for Li-Ion batteries are directly comparable. A modular-based system ¬standard would be capable of equally satisfying the performance specifications for different applications." Schlick agrees that standardization and modularization can enable volumes to be bundled across different industries: "By making Li-Ion batteries more competitive in this way, standardization allows new business models to emerge – for energy service providers, for instance." Hagemann adds: "The engineering sector in particular offers exciting possibilities for mobile machines and for automation technologies with battery handling systems in various applications."
Osram recommends current takeover offer from ams Osram says it has concluded a business combination with Austrian chipmaker ams and is recommending its shareholders to accept the current takeover offer.
EpiWorld speeds up commercialisation of SiC devices with AIXTRON AIXTRON SE has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers mainly used for the manufacturing of power devices for automotive applications.
FlexEnable makes acquisition for flex displays FlexEnable, developer of flexible organic electronics, has purchased Merck's portfolio of high-performance organic thin-film transistor (OTFT) materials.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
Samsung’s CPU project ends, layoffs in CA and TX Samsung has confirmed in a letter to the Texas Workforce Commission that layoffs as a result of the closure of the CPU project at the Samsung R&D Center (SARC) in Austin, Texas and the San Jose Advanced Computing Lab (ACL) in San Jose, California, will begin December 31.
Marvell completes acquisition of Avera Semi Marvell has completed its acquisition of Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GlobalFoundries.
IAR Systems opens office in Taiwan Swedish IAR Systems, a supplier of software tools and services for embedded development, says the company is expanding in Asia with the opening of an office in Taipei, Taiwan.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
ZF and Cree partners up to advance the electric drive ZF Friedrichshafen is teaming up with silicon carbide semiconductor specialist Cree, to create industry-leading, highly efficient electric drivelines.
Broadcom completes acquisition of Symantec Enterprise Security business Semiconductor company Broadcom, says that the company has completed its acquisition of the Enterprise Security business of Symantec Corporation
AVX acquires Chengdu OK New Energy AVX Corporation says it has completed the purchase of Chengdu OK New Energy, Ltd. (COKNE).
Vesper names new SVP of worldwide sales & business development MEMS sensor company Vesper, announces that Lorenzo Ponzanelli has joined the company as senior vice president of worldwide sales and business development, overseeing sales strategy and execution to drive global growth.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
Gigaphoton establishes new company in China Gigaphoton, a manufacturer of light sources used in semiconductor lithography, says it has established and started running the business of a new company – Gigaphoton China Inc. in China.
Prepare, adapt & overcome - how ‘to Brexit’ The looming, but yet unknown, effects of Brexit have forced companies to prepare for whatever may come. But how does one really prepare for unknown consequences?
Acal BFi signs pan-European agreement with Champs Technologies Acal BFi says it has added Champs Technologies to its magnetics portfolio. Acal BFi is a Europe-wide specialist technology supplier and design partner with a specialist portfolio of magnetic cores and inductive components products and services.
POET’s sale of DenseLight Semi to close POET Technologies Inc. announced the sale of its subsidiary, DenseLight Semiconductors Pte. Ltd. to DenseLight Semiconductor Technology (Shanghai) Co. Ltd. is scheduled to close on or before Friday, November 8, 2019.
Odyssey Semiconductor picks up wafer fab Ithaca, New York’s Odyssey Semiconductor Technologies, specializing in high-voltage power switching components and systems based on proprietary gallium nitride (GaN) processing technology, has acquired an integrated semiconductor design, fabrication, test, and packaging facility.
RBVC, Ford and BMW invests in flexible electric circuit start-up Robert Bosch Venture Capital GmbH (RBVC), the venture capital company of the Bosch Group, announces that it has completed a series B follow-on investment in CelLink Corporation.
Alex Davern to step down as CEO of National Instruments NI has announced that Alex Davern will step down as Chief Executive Officer of the company, effective January 31, 2020. The NI Board of Directors has appointed current President and COO, Eric Starkloff, as NI President and CEO, effective February 1, 2020.
RoodMicrotec takes leading role in APPLAUSE A consortium of 31 key players for packaging of electronics, optics and photonics, equipment suppliers and testing experts from 11 countries launched a new project, “Advanced packaging for photonics, optics and electronics for low cost manufacturing in Europe,” simply called APPLAUSE.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
Nidec provides an update on its Omron deal Nidec Corporation previously announced a plan to acquire Omron Automotive Electronics from Omron Corporation back inn April, 2019.
GlobalFoundries and TSMC bury the hatchet GlobalFoundries and TSMC says that the companies are dismissing all litigation between them as well as those that involve any of their customers.
Lite-On shareholders approve the Diodes deal Lite-On Semiconductor held a special meeting for its shareholders on October 25, 2019 during which the proposed acquisition by Diodes and the associated Share Swap Agreement were approved.Load more news