Next-gen Battery Technologies for Grid Storage Ripe for Investment

Limitations of lithium-ion batteries in grid storage

While lithium-ion batteries have long been used for energy storage, they face significant limitations when scaled up for grid applications. Some concerns and challenges associated with traditional lithium-ion batteries include:

• Safety — The high-energy density of lithium-ion batteries, while beneficial in many applications, poses significant fire and explosion risks in large-scale installations. This is particularly problematic for grid storage, where batteries are often clustered in close proximity.

• Resource scarcity — Lithium-ion batteries rely heavily on critical minerals like lithium and cobalt as raw materials. These finite resources continue to face ongoing concerns about the environmental consequences of mining them, raising questions about long-term sustainability.

• Cost factors — Despite decreasing costs over the years, lithium-ion batteries still require substantial capital investment, creating barriers to widespread adoption in grid storage applications.

• Cycle life and degradation — Lithium-ion batteries experience performance degradation over time, leading to reduced capacity and efficiency. This necessitates more frequent replacements, increasing long-term costs for grid operators.

These concerns around lithium-ion batteries have prompted researchers and companies to explore innovative alternatives that can better meet the unique demands of grid-scale energy storage.

Emerging technologies for next-generation grid storage

Researchers and companies are developing innovative alternatives that promise enhanced safety, lower costs and improved longevity for grid storage applications. Among these emerging technologies, sodium-based and solid-state batteries have gained significant attention.

Sodium-ion batteries have emerged as a promising alternative to lithium-ion technology. These batteries use sodium, an abundant and inexpensive element, as the charge carrier instead of lithium. The benefits of sodium-based batteries include: lower material costs due to the abundance of sodium; reduced environmental impact compared to lithium extraction; comparable energy density to some lithium-ion chemistries; enhanced safety profile, with lower risk of thermal runaway

Recent advancements in sodium-ion technology have brought these batteries closer to commercial viability for grid storage applications. For instance, researchers at the University of Houston have developed a solid-state sodium-sulphur battery that demonstrates high energy density and excellent cycling stability, making it particularly suitable for large-scale energy storage.

Another significant advancement in battery technology are solid-state batteries. This innovation replaces the liquid or gel electrolyte found in conventional batteries with a solid electrolyte, offering several advantages, including: enhanced safety due to the elimination of flammable liquid electrolytes; improved energy density and faster charging capabilities; extended cycle life and better performance in extreme temperatures; and the potential for use with a variety of electrode materials, including sodium,

Next-generation battery for grid storage

Combining solid-state technology with sodium-based chemistry has the potential to address many of the challenges faced by traditional lithium-ion batteries in grid storage applications, and one company has developed the battery that did just.

Altech Batteries' (ASX:ATC) CERENERGY Sodium Chloride Solid State (SCSS) battery is designed for the renewable energy grid storage market. The SCSS battery does not require high-demand and expensive minerals like lithium, cobalt, copper, graphite or manganese, and leverages a novel technology using sodium-chloride, a cheaper and more commonly available raw material, to produce a more durable and longer-lasting battery.

Altech has touted some key advantages of the CERENERGY battery, which include: enhanced safety by using non-flammable materials; cost-effectiveness driven by the low-cost sodium chloride content; durability and longevity through its solid-state design; and operational performance, with successful prototype testing demonstrating excellent physical performance.

Altech Batteries has partnered with Fraunhofer IKTS, a leading German battery institute, to commercialise the CERENERGY technology. This joint venture is currently constructing a 120 MWh production plant in Saxony, Germany, focused on manufacturing the 1 MWh GridPack designed specifically for grid applications.

The collaboration between Altech and Fraunhofer IKTS underscores the potential of the CERENERGY technology and positions it as a strong contender in the rapidly growing grid storage market.

Investment opportunities in non-lithium battery technologies

The shift towards alternative battery technologies that respond to the needs of a growing renewable energy market presents significant investment opportunities, particularly in the energy storage sector. Companies developing innovative solutions, such as Altech Batteries, are well-positioned to capture a substantial share of the expanding grid storage market.

Several factors contribute to the attractiveness of investments in non-lithium battery technologies:

• Market growth — The global energy storage market is projected to experience robust growth, driven by the increasing adoption of renewable energy sources and the need for grid stabilisation.

• Technological advancements — Ongoing research and development in sodium-based and solid-state batteries are yielding promising results, potentially leading to breakthroughs that could revolutionise the energy storage landscape.

• Sustainability focus — As environmental concerns gain prominence, technologies that rely on more abundant and environmentally friendly materials are likely to attract increased attention from both investors and policymakers.

• Cost reduction potential —As production scales and technologies mature, the cost of alternative battery systems is expected to decrease, increasing their competitiveness with traditional lithium-ion batteries.

Key takeaway

The transition to renewable energy sources has created an urgent need for advanced grid storage solutions that can address the limitations of traditional lithium-ion batteries. Emerging technologies, such as sodium-based and solid-state batteries, offer promising alternatives that could revolutionise grid-scale energy storage, exemplified by Altech Batteries' CERENERGY SCSS battery.

Investors and industry stakeholders would do well to closely monitor developments in this sector, as companies pioneering innovative battery technologies are poised to play a crucial role in shaping the future of energy storage and grid stability.

This INNSpired article is sponsored by Altech Batteries (ASX:ATC,FWB:A3Y). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Altech Batteriesin order to help investors learn more about the company. Altech Batteries is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

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