Leadership Perspective: Achim Kappenstein on the state of energy storage and the path to sustainability

As an automotive industry leader with over 20 years of experience spanning various regions, I started my journey in the battery electric vehicles (BEVs) and renewable energy sectors in 2018. Since then, my team and I have been on a relentless mission to push the boundaries of energy storage solutions. We've faced unique challenges that keep evolving, and I have to say—it's been a wild ride. This journey has been anything but straightforward, full of twists and turns that require us to adapt and innovate constantly. 

Traditional automotive suppliers are heavily investing in new technology and reskilling their workforce as the industry undergoes radical transformations. Every day, new players are jumping into the sector, drawn by its rapid growth and potential. With the market projected to grow at a CAGR of 20% or more globally, it's clear that this industry is not just expanding—it's booming.

Meanwhile, electric vehicle advancements are reshaping the energy storage landscape. Safer, longer-range batteries and innovative pack-to-chassis designs are becoming industry standards. But perhaps what excites me most is the potential of bi-directional charging technology, which allows EVs to function as mobile power banks. Imagine powering your home at night with your EV's stored energy and recharging your vehicle before heading out in the morning—this is the kind of innovation driving the future of energy.

As the industry matures, the focus is shifting from breakthroughs to cost reduction and scalability. A "local for local" production approach is gaining traction to optimize supply chains and reduce reliance on global resources. Additionally, repurposing used batteries for residential and industrial energy storage is emerging as a key focus. To make this a reality, we need to rethink how we design batteries—from the cells to the modules and packs—to make them easier to rework, maintain and recycle.

Sustainability is at the core of the energy storage industry's future, as focusing on sustainable materials and processes becomes increasingly important in the transition towards a circular economy. This means that companies are actively exploring alternative chemistries, such as solid-state batteries and the use of sodium or sulfur, to reduce reliance on scarce and geopolitically sensitive raw materials like lithium and cobalt. These not only help in mitigating supply chain risks but also align with global sustainability targets.

To further boost sustainability, battery recycling programs are also gaining traction, aiming to recover valuable materials from used batteries, minimize waste and reduce the need for new raw materials. Such initiatives are both environmentally responsible and economically advantageous, helping companies meet regulatory requirements and enhance their overall sustainability profiles. 

Legislative measures in various countries also incentivize battery recycling and establish efficient end-of-life management for battery systems, pushing the industry toward sustainability. The European Union's Green Deal initiatives are a key catalyst for this sustainability push, aiming for climate neutrality by 2050. This has led to an increased focus on circular economy design, where products are built for easier recycling and reuse. 

Looking ahead, the success of the energy storage industry will increasingly depend on collaboration across the entire value chain. As the market continues to expand, partnerships between manufacturers, suppliers, research institutions and other stakeholders will be necessary. I've seen firsthand how these collaborations can drive innovation, share risks and reduce costs, enabling us to tackle more ambitious and complex projects than we could alone.

I want to put particular emphasis on collaboration because it is essential for scaling production efficiently and implementing new technologies like pack-to-chassis systems, which offer greater flexibility in vehicle design. By partnering effectively, we can bring new technologies to market faster, scale up production more efficiently, and implement our "go-to-market" strategies with greater agility than ever before.

Engaging with policymakers is also vital to shaping regulations that support the industry's growth and ensure that the needs of all stakeholders are considered. Take China's "China 2050" strategy, for example—it clearly demonstrates how powerful government support can be in leading the global energy storage market. In Europe, the path is more complex due to infrastructure challenges and slower adoption rates, but with the right incentives and government plans, we can accelerate progress here too.

It's all about working together so we can effectively address challenges such as supply chain disruptions, rising costs and regulatory pressures. By doing so, we can foster a more sustainable and resilient energy storage ecosystem.