Author name: Cornelius Karow

Chinese battery manufacturer CALB is overhauling its quality and safety processes following reports of swollen battery cells in GAC Aion vehicles. According to a report by Chinese media outlet Auto Time, the changes affect manufacturing, traceability, and the company’s quality management structure. The overhaul follows the “Banana Battery” controversy, which emerged in July. According to the report, CALB is tightening manufacturing tolerances, expanding moisture monitoring during cell production, and improving the traceability of production batches. The company is also reviewing materials and formulations used in 2022 and 2023 and discontinuing formulations with lower safety margins. Quality Department Gains More Authority CALB is also introducing organizational changes. According to Auto Time, the company’s quality department will have the authority to block production batches that fail to meet internal standards. In addition, CALB has established a dedicated quality team for passenger vehicle customers that will analyze battery management system (BMS) data together with automakers. Response to the “Banana Battery” Controversy The measures follow issues involving 177-Ah lithium iron phosphate (LFP) battery cells used in GAC Aion S vehicles. After accumulating between 150,000 and 300,000 kilometers (93,000 to 186,000 miles), some vehicles reportedly experienced cell swelling, electrolyte leakage, and power loss. GAC Aion subsequently extended the battery warranty for affected vehicles to eight years or 300,000 kilometers (186,000 miles). CALB said it would assume responsibility for battery cell quality. Source:https://cnevpost.com/2026/08/06/calb-banana-battery-quality-overhaul/

Samsung SDI plans to begin production of prismatic lithium iron phosphate (LFP) battery cells for stationary battery energy storage systems (BESS) in the US in October 2026, according to the company. The production line is currently undergoing mass production quality validation, with the first deliveries of the Samsung Battery Box (SBB) 2.0 scheduled before the end of the year. At the same time, Samsung SDI expects demand to exceed available production capacity from 2028 onward. The company announced last year that it aims to establish 30 GWh of annual BESS cell production capacity in the US by the end of 2026. Against this backdrop, Samsung SDI says it is already evaluating options to expand capacity further. Non-FEOC Supply Chain a Key Focus According to Samsung SDI, it has secured LFP cathode materials and other key components through partnerships with suppliers in South Korea and the US to establish a supply chain that complies with US Foreign Entities of Concern (FEOC) requirements. The effort follows changes to US tax incentive rules that restrict eligibility for projects using certain imported battery cells. The company says orders received to date already cover a substantial portion of its planned production capacity through 2029. During the second quarter, Samsung SDI also signed long-term supply agreements with US BESS customers, although it did not disclose details. In addition to LFP technology, the company is developing sodium-ion batteries for data centers and large-scale energy storage systems but has not provided a commercialization timeline. Source:https://www.energy-storage.news/samsung-sdi-on-track-with-us-lfp-cell-production-expects-demand-to-outstrip-production/

Altech Advanced Materials AG has discontinued the CERENERGY battery project in Saxony. According to the company, the decision followed an unsuccessful nine-month search for a strategic partner. The company said the prospects of securing financing and bringing the project into operation had become so limited that further operating expenses could no longer be justified. The project was intended to produce sodium-alumina solid-state batteries for stationary energy storage applications. Developed as a joint venture between Altech and the Fraunhofer Society, it was designed to supply battery systems for electricity grids and the storage of energy generated from wind and solar power. The initial plan called for an annual production capacity of 100 megawatt-hours, with expansion planned in later stages. Project Company to Be Liquidated The decision also means the liquidation of Altech Batteries GmbH, the company that holds the project’s assets. The site in Spreetal is to be sold back to the local municipal authority. The patent rights for the CERENERGY technology will remain with the Fraunhofer Society, which owns a 25% stake in the project company. Sources:https://www.altechadvancedmaterials.com/wp-content/uploads/2026/07/2026-07-30-CERENERGY-Projekt-Eingestellt.pdfhttps://www.altechadvancedmaterials.com/wp-content/uploads/2023/04/Geschaeftsbericht-AAM_2022_fin_Upload.pdf

The European Commission has launched a funding call under the Battery Booster Facility. The program offers up to €1.5 billion in interest-free loans for battery cell manufacturing projects in the European Economic Area (EEA). It is financed through the Innovation Fund, which is funded by revenues from the EU Emissions Trading System. Applications are open until September 30, 2026. Support for the Production Ramp-Up Phase The loans target projects in the ramp-up phase between pre-series production and full commercial operation. According to the European Commission, the funding is intended to help companies expand production more quickly and attract additional private investment. Eligible projects must manufacture battery cells for electric vehicles and be located in the EEA. Projects must already be in the ramp-up phase when the call opens. They must also represent the applicant’s first full-scale commercial battery cell production project for electric vehicles anywhere in the world. In addition, each project must have a planned annual production capacity of at least 10 GWh. Successful applicants may receive interest-free loans covering up to 60% of eligible costs. Funding is capped at €500 million per project. The Battery Booster Facility is part of the EU’s broader strategy to strengthen Europe’s battery industry. According to the Commission, the strategy also includes measures to encourage investment, strengthen the upstream battery supply chain, support innovation and skills development, and improve coordination across Europe. Sources:https://single-market-economy.ec.europa.eu/news/commission-seeks-projects-fund-under-battery-booster-facility-2026-07-28_enhttps://single-market-economy.ec.europa.eu/calls-proposals/battery-booster-facility-call-proposals_en

U.S.-based battery developer Factorial Energy and South Korean battery manufacturer SK On plan to collaborate on solid-state battery technology. The goal is to evaluate whether and how SK On’s existing manufacturing facilities could be used to produce solid-state batteries. The specific terms of the collaboration are expected to be defined in future agreements. The partnership will focus on the technical evaluation of Factorial’s FEST solid-state battery technology. Existing Manufacturing Capacity in Focus According to the companies, the collaboration will examine the manufacturing requirements for solid-state batteries and assess whether existing lithium-ion battery production lines are suitable for the technology. Factorial aims to pursue a capital-light approach by leveraging existing manufacturing infrastructure rather than building new production facilities. SK On has an annual global production capacity of more than 200 GWh, including approximately 100 GWh in the United States. Its U.S. manufacturing footprint includes facilities in Commerce, Georgia, as well as operations in Tennessee. Assessing Industrial Feasibility The collaboration will initially focus on technical feasibility and manufacturing requirements. Whether it will lead to commercial-scale production remains uncertain. According to Factorial, this is the company’s first manufacturing-focused partnership with a global battery producer. The companies also plan to explore potential applications for solid-state batteries in mobility and other high-performance markets. Source:https://factorialenergy.com/press-releases/factorial-and-sk-on-sign-mou-to-explore-solid-state-battery-manufacturing/

BMW plans to begin series production of high-voltage batteries for the all-electric BMW iX5 at its new Woodruff plant in South Carolina in December 2026. According to the company, test and pre-series batteries are already being produced at the facility. The batteries will then be shipped to the nearby Spartanburg vehicle plant, where the iX5 will be assembled. The Woodruff plant is part of BMW’s global “Local for Local” production strategy, under which batteries are assembled close to the company’s vehicle manufacturing plants. In addition to Woodruff, BMW has established or is establishing similar battery assembly sites in Germany, China, Mexico, and Hungary. AI and digital planning intended to improve battery assembly According to BMW, the Woodruff plant uses AI-supported production processes, digital twins, and virtual reality applications. More than 300 employees and 250 robots are expected to support the assembly of high-voltage batteries. The company says all production steps are continuously monitored and documented in real time. AI assistants are intended to analyze the resulting data and support manufacturing operations. Gen6 battery with 800-volt architecture for the BMW iX5 The batteries are based on BMW’s sixth-generation high-voltage battery technology. Cylindrical battery cells are integrated directly into the battery pack using the company’s Cell-to-Pack design. The battery-electric BMW iX5 will feature BMW’s sixth-generation eDrive technology with an 800-volt architecture. According to the company, the high-voltage battery provides a usable energy capacity of 144 kWh in the U.S. and 141 kWh in Europe, making it the largest battery ever offered in a fully electric BMW model. Source:https://www.press.bmwgroup.com/deutschland/article/detail/T0459239DE/erste-einblicke-in-die-produktion:-bmw-group-werk-woodruff-montiert-die-hochvoltbatterien-fuer-den-neuen-bmw-ix5

Chinese battery manufacturer Gotion is engaged in advanced negotiations with Volkswagen over a potential stake in the PowerCo battery cell plant in Sagunto, Spain, according to the Spanish trade publication La Tribuna de Automoción. The report says the companies are considering a structure under which Gotion would acquire a majority stake in a joint venture for the facility, while PowerCo would retain an ownership interest. PowerCo declined to comment on the report to Reuters, stating only that it regularly evaluates strategic opportunities and partnerships. A company spokesperson also said there are no plans to relinquish control of the site. Gotion did not immediately comment. Industry Report Points to Potential Majority Stake According to La Tribuna de Automoción, the negotiations have been underway for several months. The publication cited industry sources who said Gotion CEO Li Zhen has visited the site and held discussions with PowerCo representatives. The report states that both the technical and commercial aspects of a potential investment have been evaluated. It also says the negotiations are limited to the Sagunto facility and do not involve PowerCo’s battery business as a whole. Battery Plant Is Part of Volkswagen’s European Strategy The Sagunto plant is one of PowerCo’s key projects. Volkswagen announced the start of construction of the battery cell factory in 2023. According to the company, the facility is initially designed for an annual production capacity of 40 gigawatt-hours, with the potential to expand to 60 gigawatt-hours. The battery cells produced at the site are intended in part for Volkswagen’s vehicle plants in Spain. Based on the current timeline, production is expected to begin by the end of 2026. The installation and commissioning of manufacturing equipment, as well as the construction of clean rooms and dry rooms, are currently underway. Sources:https://www.reuters.com/world/china/volkswagen-takeover-talks-with-chinese-partner-spanish-battery-plant-trade-2026-07-27/https://www.latribunadeautomocion.es/2026/07/gotion-negociaciones-powerco-sagunto/https://www.volkswagen-group.com/en/press-releases/gigafactory-valencia-powerco-gives-starting-signal-for-construction-of-second-cell-factory-17033https://www.eldiario.es/comunitat-valenciana/economia/powerco-reajusta-inicio-produccion-gigafactoria-sagunto-finales-ano_1_13380485.html