Noted this from Sumitomo the first coy to deal with VRB technology..also partners with LeSystemsSumitomo Electric planslong-life battery plant in North America https://asia.nikkei.com/Business/Technology/Sumitomo-Electric-plans-long-life-battery-plant-in-North-America
OSAKA -- Japan's Sumitomo Electric Industries plans to build anew battery plant in North America as the U.S. accelerates its shift tosustainable energy, Nikkei has learned.
Sumitomo wants to produce large-capacity batteries called"redox flow cells," which are used to store electricity generated bywind turbines and other forms of renewable energy. The batteries are less proneto degradation than conventional lithium-ion batteries. Their battery life ofup to 30 years is expected to be twice as long as that of lithium-ionbatteries.
The battery market in North America is expected to expand to 1.7trillion yen ($12.9 billion) by 2035, according to Japanese research firm FujiKeizai Group. Sumitomo hopes that by building a local production base, it wouldgain first-mover advantage.
Osamu Inoue, president of the company, told Nikkei in a recentinterview that the U.S. will become the world's largest battery market, withCalifornia state leading the way. He added that the company planned to expandits business by producing batteries in the U.S. and Japan.
The company is in the midst of planning such a move and it seesTexas and the city of Aguascalientes in Mexico as options for its base.
Sumitomo hopes to open the plant by 2024. The company plans toprocure key materials from local companies and assemble them before it deliversthe batteries to utility companies. The company wants to make the batteries inOsaka as well and expects to increase production capacity by three times, withthe aim of generating 10 billion yen in sales from the business by 2025.
The redox flow battery works by circulating vanadium, in liquidform, in the tank. The battery uses vanadium electrolyte to store energy andenable batteries to have a longer and safer life. Given that renewable energyis subject to weather and its supply can be unstable, such batteries would begreatly useful for the transition from fossil fuels.
Fuji Keizai Group expects that the global market of stationarybatteries will grow 3.8 times to 5.4 trillion yen by 2035 from 2021. NorthAmerica will lead the growth with an increase of 4.1 times to 1.7 trillion yen,followed by 1.1 trillion yen in China, and 746.6 billion yen in Europe.
Renewables currently account for 21% of the energy mix in theU.S., according to the International Energy Agency, lower than that of Chinaand some European countries.
President Joe Biden's administration has pledged to achievenet-zero emissions in the electricity sector by 2035 and wants to introduceoffshore wind power and other renewables. In California, the localgovernment requires some utility companies to install large batteries.
While lithium-ion batteries are widely used, companies areracing to develop new types of energy storage, including solid-state batteriesfor electric vehicles.
Sumitomo led the way in developing redox flow batteries byputting them into commercial use in 2001 for the first time in the world. Thebattery is too large to be used in EVs but it is safe and durable forlarge-capacity storage.
The installation costs of such batteries vary but are oftenaround 1.5 times higher than those of lithium-ion batteries. The companybelieves that its redox flow batteries can be more competitive in the long runas their capacity can be increased by adding electrolyte.
