LEAD-ACID BATTERY
IN THE FAST LANE
"The security of supply and the high recycling rate clearly speak in favour of lead-acid batteries."
Büffelpost: It starts to look like the world is focussing on electric cars. But what does this mean for the future of the lead-acid battery?
Franz Märzinger: In our view, the initial euphoria about electric cars is over and a sense of disillusionment appears to be setting in. Many first-time buyers of electric cars have realised that the promised ranges are simply not attainable - especially in winter, and that public charging facilities in particular are still highly unsatisfactory. As can be seen in Germany, for example, new registrations of electric cars are declining significantly following the abolition of state subsidies. We’re also seeing clear trends at EU level towards postponing the full changeover to e-mobility further into the future.
Regardless of this, over 90% of electric cars currently also use the 12 V on-board electrical system battery with the trusted environmentally friendly lead-acid technology. We’re anticipating further market growth in the lead-acid battery segment of around 1 to 2% per year over the next ten years.
Büffelpost: What is the difference between 12 V batteries for electric cars and conventional starter batteries?
Franz Märzinger: To answer this, we first need to define the term "conventional" starter battery. Until now, we’ve basically had two categories in the automotive sector. On the one hand, we have the customary wet batteries, which until around ten years ago were primarily used in original equipment for starting purposes. More recently, we’ve also had start-stop batteries, which have been used as original equipment over the last decade and recently increasingly also in the replacement business. These start-stop batteries have been heavily optimised in terms of cycle stability, fast charging and braking energy recovery. In other words, an energy solution that not only provides strong starting power for the combustion engine, but also the requisite charging and discharging cycles.
In this respect, the on-board electrical system battery in the electric vehicle is a further development of start-stop batteries. The requirement for cold-start performance is becoming a lesser topic, whilst cycle stability is growing in importance. And the battery is becoming smaller and lighter as a result of these changes in requirements.
Büffelpost: Asian competitors - above all the Koreans - are also entering the lead-acid battery market. What does that mean for Banner?
Franz Märzinger: In general, the much-maligned disadvantages of Europe as a location for industry have unfortunately worsened over the last four years. Although the challenge posed by COVID-19 also affected Asia, the energy crisis arising due to the war in Ukraine, the massive inflation that followed and the subsequent hard-hitting salary increases did not materialise in Asia. These cost advantages are being utilised by our Asian competitors to gain further market shares in Europe. However, this activity is offset by the current uncertainties in the supply chain, the associated delays in delivery and increases in transport costs. Many importers of starter batteries received their deliveries two months too late this winter, leading to shortages in winter and overstocking in spring. Despite all this adversity, we were able to maintain our market share.
Büffelpost: Tesla has been installing a lithium-ion lithium iron phosphate-based on-board electrical system battery in all its electric cars since 2022. Is there a risk that lead-acid batteries will be completely replaced in this area in the future?
Franz Märzinger: We don’t see a risk here. It’s certainly the case that Tesla has opted for this solution. However, the majority of car manufacturers are currently focussing on the advantages of lead-acid batteries, and we believe they will continue to do so in the future. In addition to the significantly lower costs, the security of supply (note: lead-acid batteries are produced in high numbers in Europe) and the unbeatable 100% recycling rate clearly count in favour of the lead-acid battery.