The lithium battery industry will move 430,000 million dollars in 2023, compared to 57,000 million in 2020. We spoke with Mario Nicolás, CEO of NCPOWER, one of the Spanish startups manufacturing lithium batteries for an electric future.
What is NCPower and what does it do?
NCPOWER is a Spanish manufacturer of Sustainable lithium batteries with Innovative and Personalized Technology. It designs, develops and manufactures advanced lithium-ion energy storage solutions for electromobility for 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, having a presence on 3 continents.
Are your products sold to small consumers or are they focused on companies?
We are targeting an industrial B2B client. Our target audience is manufacturers of electric vehicles, specifically low-intensity light commercial vehicles for the transportation of goods (trucks, vans, etc.) and utility vehicles designed to move over all types of terrain.
NCPOWER supplies customized LiFePO4 lithium batteries for leading commercial vehicle manufacturers, such as DFSK, the world's No. 1 manufacturer of this type of vehicle.
Batteries seem to be the future not only of mobility, but they are an essential element for the storage of energy from renewable sources. Why is it a strategic sector, beyond these issues?
The lithium-ion battery market was estimated at 57 billion euros in 2020 and the forecast for the 2030 horizon is estimated at 430 billion dollars. Clearly, it is a technology and commitment to 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, which is the safest and most stable chemistry on the market. It lasts more than 10 years and up to 5,000 recharge cycles without maintenance.On a technological level, its advantages are clear. Beyond the performance and its high capacities, there is its high safety and an element of great relevance for us, such as sustainability. Lithium has acquired great relevance in the context of the transition towards a greener and more sustainable economy. As a key element in lithium-ion batteries, lithium has revolutionized the electric mobility and energy storage sector, providing a cleaner and more efficient alternative to fossil fuels.
NCPOWER is positioned as a benchmark in the development and manufacturing of high-quality, high-performance lithium batteries with greater durability and reduced waste. Our commitment to the circular economy and the green economy position us as a strategic ally in building a cleaner and more efficient future.
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NCPOWER develops the entire manufacturing process of a lithium battery and its subsequent distribution and maintenance
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NCPOWER is a Spanish company. Do you develop and manufacture your products in Spain?
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 contribute our experience, knowledge and the high quality of the components to manufacture the most profitable, efficient and safe sustainable batteries on the Spanish market.
With such an emerging market, hundreds of manufacturers are appearing, who are really suppliers; That is, they buy batteries and sell them in Spain and Europe without any type of support or guarantee. And most importantly: without the integration of its components, they cannot guarantee the viability and safety of the battery. This is a big difference compared to NCPOWER, since we actually carry out the entire process and in this sense we can contribute our experience, knowledge and quality. We have recently achieved certification of the production process and R100.02 approval, a distinctive seal of safety and trust.
In what position is Spain with respect to a strategic industry like this?
There is still much to do. Spain, despite being a global benchmark in the motor industry (the automotive industry accounts for 10% of Spanish GDP and 9% of employment), 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%.[](__NCP_TOKEN_1__)However, there is increasingly less doubt that we are called to champion the future of mobility in the medium and long term. Thanks to the environmental commitments set by the European Commission and the national governments themselves. Measures are being taken from Europe and state aid is being approved to reconvert the battery market as a key element for the competitiveness and industrial leadership of the European Union.
Has it been difficult for you to set up NCPower in Spain? How could the country be encouraged to attract foreign investment in this sector and also promote 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 a functional and operational level. However, at a bureaucratic level there are numerous obstacles that we face when requesting permits to launch battery manufacturing projects.
Spain has made progress regarding the issue of business creation. However, if we compare Spain with other countries in the European Union, there is still a long way to go for improvements in terms of bureaucratic procedures, company registrations, taxes, etc.
Are there still business opportunities in the battery market?
The future is electric and at the moment there are endless business opportunities in this sector, since 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 recycling or second life of batteries.
Success in the race to implement the electric car] is closely linked to investment in the construction of battery factories, as demonstrated by the efforts of all countries, with the US in the lead, to attract projects from large automobile firms.
The Spanish economy has several advantages to become an attractive destination for battery manufacturing. The first of them is its muscle and its experience as a vehicle producer, which makes us a favorable environment to attract large foreign investors as has already happened in Sagunto with the Volkswagen group.
Governments must work to improve the rules of the sector, giving predictability and speed to processes. Some of the key drivers of market attractiveness would include policy and regulatory supports, facilitation of industrial permits, aid and financing mechanisms, such as financial incentives to accelerate investments in Spain, among others.
Where is the battery sector and market going?The transition to electric vehicles is a global phenomenon that is here to stay. With the arrival of increasingly affordable models, vehicles with traditional combustion engines will soon be history.
The adoption of electric vehicles is increasing globally due to factors such as lower battery prices and the investment of large automotive companies in these batteries.
The battery market for these vehicles is estimated to be worth $175 billion by 2028. Europe is emerging as the growth leader, with Asia-Pacific, led by China, leading in sales and production.
The trend and advancement of the battery market goes hand in hand with the technology used in their manufacturing: batteries with longer useful life, greater power and autonomy, and fast charges, among other factors such as weight and dimensions.
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The electric vehicle seems to be the future of mobility, but it has challenges ahead.
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What would happen if electric mobility finally does not become the standard? Is there an alternative?
From the current moment, it is clear that we are moving 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 it, and it is expected that cheaper options will be launched soon. The exponential growth in the sale of electric vehicles and the abandonment of combustion vehicles is clear evidence of where the market is going.
In Spain, interest in electric mobility has already been recognized as a sustainable alternative. According to a survey by Oliver Wyman, 73% of Spaniards would consider purchasing an electric vehicle. In fact, the market share of the electric vehicle] already exceeds 11.08% of the total market. In this year's total, sales of 100% electric vehicles total 38,091 units, 79% more than in the same period in 2022.
For NCPOWER, the development of more advanced batteries, with greater autonomy and at a lower cost, is essential. Lithium-ion batteries may be the solution to offer that higher performance with shorter charging times, lower costs and greater safety.
Increasing and improving charging 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 clear environmental awareness among both administrations and society in general. Currently we have at our disposal a wide range of types of vehicle propulsion. Electrification is for now the one that takes the biggest piece of the pie, so we must take advantage of the benefits it offers us.
Batteries increasingly have greater autonomy, but they are still insufficient to cover long distances, especially in industries such as aviation. When will we see batteries capable of responding like the fossil fuels used today?
There are already projects from large manufacturers such as Tesla and Toyota that promise more than 800 km of autonomy in their vehicles by 2026. Emerging technologies, such as autonomous vehicles and artificial intelligence, will play a fundamental role in the advancement of electric mobility.
What plans does NCPower have for 2024?
We have recently achieved certification of the production process and 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 already have our sights set on 2024 and on some challenges that lie ahead:
● Become a benchmark in the Spanish sector, positioned as one of the main providers 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 connection, which will allow us to increase our value proposition and competitive advantage.
● Continue working on the specialization of light commercial vehicles and utility vehicles. And the possible diversification of our solutions to supply the different industrial energy storage markets.
Technology advances rapidly and consumer and market demands are constantly changing, so it is important to always be up to date and able to adapt to changes. We are pleased to have been able to overcome the limits offered by traditional electrification. Furthermore, we continue to keep our eyes on the future and continuous improvement.
See original content here: The lithium battery market is a bet and strategy for the future
ECONOMY QUESTIONNAIRE 3 – NCPOWERDownload