Battery Weekly: US energy-storage production lines shift faster; GM turns to “smaller batteries, same range”
Bernstein’s tracking this week shows that Samsung SDI’s conversion of energy-storage production lines has already generated equipment orders, while GM is trying to reduce battery usage through new chemistries and vehicle efficiency. China’s battery-swapping network continues to expand, and falling lithium prices are also creating room to lower battery costs.
Original source：BernsteinFirst published on Unhidea：Original source date：
Key takeaway
Energy-storage demand is driving the conversion of US battery production lines, while EV cost reductions are proceeding through lower material prices, improved chemistries and greater vehicle efficiency. These approaches are at noticeably different stages of implementation.
How does energy-storage demand translate into equipment orders?
Samsung SDI plans to convert three of the four production lines at its StarPlus Energy plant in Indiana, US, into lithium iron phosphate (LFP) lines for energy storage, adjusting existing NCA battery capacity for energy-storage use. The third line is expected to serve a global energy-storage system integrator.
The conversion has already generated procurement orders: MOT secured an assembly equipment order worth 10.1 billion South Korean won for the third line, while Philenergy secured equipment orders worth a combined 157.3 billion South Korean won for the second and third lines. The specific conversion purchases are what connect this development to supplier revenue; line conversion and the start of production are at different stages.
The weekly report cites BNEF’s outlook for rapid expansion of global grid-scale battery capacity through 2036 and views energy storage as a major structural driver that will supplement EV demand over the next decade. Falling battery costs, rising renewable-energy penetration and demand for grid balancing collectively support this assessment.
Why does GM want to maintain range with less battery capacity?
GM says its fourth-generation EV platform can reduce vehicle weight by 15%, battery capacity by 20% and wiring harnesses by 30%, while improving overall energy efficiency by 20%. Its cost-reduction logic is to first lower vehicle energy consumption and then reduce the battery capacity needed to achieve a similar range.
The new platform is planned to use prismatic lithium-rich manganese-based (LMR) cells. GM says their energy density is about 33% higher than LFP and plans to introduce this approach into higher-volume EV segments. These metrics relate to the new platform design.
GM will also close its Brownstown battery assembly plant near Detroit because its lease is expiring, with production and employees transferring to other plants. The company says the closure is not directly driven by its EV strategy, so this adjustment should be understood separately from the new platform’s technology plans.
Where are the key connections in battery-swapping expansion?
CATL’s dual-battery solution for heavy trucks combines a swappable main battery of 432 or 513 kilowatt-hours with a fixed 77-kilowatt-hour backup battery. The backup power supply allows the main battery to be used more fully and works with the Qiji heavy-truck battery-swapping network. Initial customer orders have covered 13 thousand trucks.
For passenger vehicles, BAIC plans to introduce CATL’s Choco-Swap across multiple brands and use its dealer network to support station construction. By the end of September, CATL had built 2520 swapping stations across 200 Chinese cities; its ultimate target is 30 thousand stations.
Huawei Newcool has formally joined the Choco-Swap ecosystem, and the two sides plan to integrate vehicle, swapping-station and cloud data to enable automatic energy replenishment. Reports of an initial five battery-swapping models in 2027 have not been officially confirmed; implementation of the partnership and the number of models should be considered separately.
How much room can lower material prices create for battery cost reductions?
The weekly report says China’s lithium carbonate price has fallen below 100 thousand yuan per tonne, roughly halving from its May level, as expectations have shifted toward a potential supply glut. CITIC forecasts global supply will exceed demand by 38 thousand tonnes in 2027; Goldman Sachs expects China’s average lithium carbonate price to be about 100 thousand yuan per tonne in 2027 and 84 thousand yuan in 2028, creating conditions for further battery cost reductions.
Manufacturing cost reductions are also advancing: SK On is replacing more expensive slurry with carbon nanotube powder while maintaining similar battery performance. The benefit of this approach for LFP cost competitiveness depends on whether the process can be commercialized.
