What is NCPower and what does it do?
NCPOWER is a Spanish manufacturer of Sustainable Lithium-ion batteries with Innovative and Customised Technology. It designs, develops and manufactures advanced lithium-ion energy storage solutions for electromobility in a wide variety of markets: Light Commercial Electric Vehicles, Electric Utility Vehicles, Industrial Machinery and Energy Storage. It has a consolidated international presence and continues its expansion process, with a presence on 3 continents.
- Are your products sold to small consumers or are they focused on businesses, and could you mention some brands that already work with your batteries?
We are targeting a B2B industrial customer. Our target audience is manufacturers of electric vehicles, specifically light commercial vehicles for low-intensity goods transport (pick-up trucks, vans, etc.) and utility vehicles designed to move over all types of terrain.
NCPOWER supplies customised LiFePO4 lithium batteries to leading commercial vehicle manufacturers. For example, we supply batteries for the world's No. 1 manufacturer of this type of vehicle.
Batteries seem to be the future not only of mobility, but also an essential element for the storage of energy from renewable sources. Why is it a strategic sector, beyond these questions?
The market for lithium-ion batteries was estimated at €57 billion in 2020 and the forecast for the 2030 horizon is $430 billion. It is clearly a technology and a bet on the future.
The main component of these batteries is lithium and there is solid and proven scientific evidence of the preferential qualities of this material in terms of electrochemical potential, energy density, power density and battery life. Furthermore, at NCPOWER we work with LifePo4 lithium, the safest and most stable chemistry on the market. It has a life of more than 10 years and up to 5,000 recharge cycles without maintenance.
From a technological point of view, its advantages are clear. In addition to their performance and high capacities, there is their high security and an element of great relevance for us such as the sustainability.
Lithium has become highly relevant in the context of the transition towards a greener and more sustainable economy. As a key element in lithium-ion batteries, lithium has revolutionised the electric mobility and energy storage sector by providing a cleaner and more efficient alternative to fossil fuels.
NCPOWER is positioned as a benchmark in the development and manufacture of high quality, high performance lithium batteries with increased durability and reduced waste.
Our commitment to the circular economy and the green economy positions us as a strategic partner in building a cleaner and more efficient future.
- NCPOWER is a Spanish company, do you develop and manufacture your products in Spain, and where does the country stand with respect to such a strategic industry?
Yes, we are manufacturers. At NCPOWER we design and manufacture lithium batteries in Spain. We carry out the entire manufacturing process with our own battery management technology (BMS). We provide our experience, knowledge and high quality components to manufacture the most profitable, efficient and safe sustainable batteries in the Spanish market.
With such an emerging market, hundreds of manufacturers are appearing, who are really suppliers, i.e. they buy batteries and sell them in Spain and Europe without any support or guarantee. And most importantly: without the integration of their components, so they cannot guarantee the viability and safety of the battery.
This is a big difference We actually carry out the whole process and in this sense we can bring our experience, knowledge and quality to NCPOWER.
We have recently achieved the certification of our production process and the type approval R100.02a hallmark of security and trust.
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There is still a long way to go. Spain, despite being a global benchmark in the motor industry (the automotive industry accounts for 10% of Spanish GDP and 9% of employment), our country has barely taken steps in a strategic niche for new mobility and which will move, in Europe alone, 250,000 million a year from 2025, with a market share of only 3%, while Asia accounts for 85%.
However, there is less and less doubt that we are set to lead the future of mobility in the medium and long term. Thanks to the environmental commitments set by the European Commission and national governments themselves.
Europe is taking measures and approving State aid to reconvert the battery market as a key element for the competitiveness and industrial leadership of the European Union.
- Have you found it difficult to set up NC Power in Spain, and how could the country be encouraged to attract foreign investment in this sector and also encourage new local projects such as NC Power?
In my case, the experience and know-how acquired in the manufacture of electric vehicles as well as in their support and guarantee has made my work much easier at the functional and operational level. However, at the bureaucratic level, there are numerous obstacles we face when applying for permits to start up battery manufacturing projects.
Spain has made progress in the area of business creation. However, if we compare Spain with other EU countries, there is still a long way to go to improve bureaucratic procedures, company registration, taxes, etc.
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The future is electric and there are currently endless business opportunities in this sector, as we are talking about a sector with exponential growth and where it is necessary to create companies that feed the entire value chain, from mining and extraction of raw materials to the recycling or second life of the batteries.
Success in the race to implement the electric car is closely linked to investment in the construction of battery factories, as evidenced by the efforts of all countries, with the US leading the way, to attract the projects of the major automobile firms.
The Spanish economy has several advantages to become an attractive destination for battery manufacturing. The first of these is its muscle and experience as a vehicle producer, which makes us a favourable environment for attracting large foreign investors, as has already happened in Sagunto with the Volkswagen group.
Governments should work to improve the rules of the sector, giving predictability and speed to the processes. Some of the key drivers of market attractiveness would include policy and regulatory support, facilitating industrial permits, aid and financing mechanisms, such as financial incentives to accelerate investments in Spain; among others.
- Where is the battery industry and market heading?
The transition to electric vehicles is a global phenomenon that is here to stay. With the advent of increasingly affordable models, traditional combustion engine vehicles will soon be history.
The adoption of electric vehicles is on the rise globally due to factors such as lower battery prices and investment in batteries by large automotive companies.
The battery market for these vehicles is estimated to be worth $175.11 billion by 2028. Europe is set to be the growth leader, with Asia-Pacific, led by China, leading in sales and production.
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The trend and progress in the battery market goes hand in hand with the technology used in the manufacture of batteries: batteries with longer life, greater power and autonomy, and fast charging, among other factors such as weight and dimensions.
- What will happen if electric mobility does not become the standard in the end? Is there an alternative?
From where we are today, it is clear that we are heading in the right direction, but there are still challenges to overcome. The main challenge is to offer affordable electric vehicles. Companies are already focused on this, and more affordable options are expected to be launched soon. The exponential growth in electric vehicle sales and the shift away from combustion vehicles is clear evidence of where the market is going.
In Spain, interest in electric mobility has already been recognised as a sustainable alternative. According to a survey by Oliver Wyman, 73% of Spaniards would consider buying an electric vehicle.
In fact, the market share of electric vehicles already exceeds 11.08% of the total market. Cumulatively this year, sales of 100% electric vehicles total 38,091 units, 79% more than in the same period of 2022.
For NCPOWER, the development of more advanced batteries with longer range and lower cost is essential. Lithium-ion batteries can be the solution to deliver that higher performance with shorter charging times, lower costs and improved safety.
Increasing and improving the recharging infrastructure is another key aspect. The Spanish government plays a crucial role in this area, recently accelerating the presentation of the Strategic Project for Economic Recovery and Transformation (PERTE).
There is a clear environmental awareness on the part of both administrations and society in general.
Today we have a wide range of vehicle propulsion types at our disposal. Electrification is currently taking the biggest slice of the cake, so we must take advantage of the benefits it offers.
- Batteries are getting longer and longer, but they are still insufficient to cover long distances, especially in industries such as aviation. When will we see batteries that are as responsive as the fossil fuels currently in use?
There are already projects by major manufacturers such as Tesla and Toyota that promise more than 800 km of range in their vehicles by 2026.
Emerging technologies, such as autonomous vehicles and artificial intelligence, will play a key role in the advancement of electric mobility.
NCPOWER is a relatively young company that has established itself as one of the main references in the market of lithium batteries for electric light commercial vehicles in Spain.
- What are NC Power's plans for 2024?
We have recently obtained the certification of the production process and the R100.02 approval.and we are already in the process of patenting our own battery management system (BMS) as well as the NCPOWER System itself.
We are already looking ahead to 2024 and some of the challenges ahead:
● To become a benchmark in the Spanish sector, positioned as one of the main suppliers of complete lithium battery solutions.
● The expansion of our production capacity with new facilities.
● Expand our staff of specialist professionals in the different business areas and especially in the engineering departments due to the strong technological links, which will allow us to increase our value proposition and competitive advantage.
● Continue to work on specialising in light commercial vehicles and utility vehicles. And the possible diversification of our solutions to supply the various industrial energy storage markets.
Technology is advancing rapidly and consumer and market demands are constantly changing, so it is important to always be up to date and able to adapt to change. We are pleased that we have been able to overcome the limits offered by traditional electrification. We also keep our eyes on the future and continuous improvement.
