Unlocking Net Zero: UK Battery Companies Driving Change in the Energy Sector

tIt may conjure thoughts of battery production lines and the expansive “gigafactory” projects of Elon Musk and Tesla worldwide, or images of batteries powering devices from electric toothbrushes to smartphones and cars. However, at Invinity Energy Systems’ modest factory in Basgate, near Edinburgh, employees are fostering hope that Britain will also play a pivotal role in the battery revolution.

These batteries, utilizing vanadium ions, can be housed within a 6-meter (20-foot), 25-ton shipping container. While they may not be used in vehicles, manufacturers aspire for this technology to find its place in the global storage rush, propelling a transition to net-zero carbon grids.

Renewable electricity represents the future of a cleaner and more economical energy system compared to fossil fuels. Its primary challenge lies in the fact that renewable energy generation is contingent on weather conditions—sunshine and wind may not be available when energy demand peaks. Battery storage allows for the shift of energy production, enabling it to be saved for later use, which is essential for a well-functioning electric grid.

“What has suddenly become apparent is that people have recognized the necessity of energy storage to integrate more renewable energy into the grid,” stated Jonathan Mullen, CEO of Invinity, at the factory where a series of batteries are stacked and shipped.

For a long time, experts have explored various methods for storing renewable electricity, but the issue of grid reliability gained political attention in April when Spain and Portugal experienced the largest blackouts in Europe in two decades. While some rushed to criticize renewable energy, a Spanish government report clarified that it was not the cause. Nonetheless, battery storage assists grids worldwide in avoiding similar complications as those seen in the Iberian Peninsula.

Much of the attention in battery research has focused on maximizing energy storage in the smallest and lightest containers suitable for electric vehicles. This development was crucial for the transition away from carbon-intensive gasoline and diesel, which are significant contributors to global warming. It also led to substantial reductions in the costs associated with lithium-ion batteries.

As with many aspects of the shift from fossil fuels to electric technologies, China is driving demand at an incredible scale. According to data from Benchmark Mineral Intelligence, China has installed batteries with a capacity of 215 gigawatt hours (GWh).

China’s battery installations are expected to nearly quadruple by the end of 2027 as new projects are completed. For instance, the state-owned China Energy Engineering Corporation recently bid on a 25GWh battery project utilizing lithium iron phosphate technology, typically used in more affordable vehicles.

Iola Hughes, research director at a Benchmark subsidiary, Rho Motion, stated that declining prices and increased adoption of renewable energy are propelling the rise in demand. By 2027, total global battery storage installations could increase fivefold, Hughes noted, adding, “This figure could rise even further as technological advancements and reduced costs enable developers to construct battery energy storage systems at an unprecedented pace.”

The majority of this growth (95% of current figures) will involve projects utilizing lithium-ion batteries, including a site in Aberdeenshire managed by UK-based Zenobē Energy, which claims to have “the largest battery in Europe.”

Energy storage companies harnessing various technologies must navigate a challenging landscape to secure early-stage funding while proving that their technologies are economically viable. Invinity’s flow batteries use vanadium, while U.S.-based rival EOS Energy employs zinc. However, flow batteries often excel in applications requiring storage durations of over 6-8 hours, where lithium batteries typically fall short.

Flow batteries leverage the unique properties of certain metals that can stably exist with varying electron counts. One transport unit contains two tanks of vanadium ions, each with different electron counts—one is “Royal Purple” and the other “IRN-Bru Red.” The system pumps the vanadium solution through a membrane stack that allows protons to pass, while electrons travel around the circuit to provide power. If electrons are driven in the opposite direction by solar panels or wind turbines, the process reverses, charging the battery, which can support a charge of up to 300 kilowatts.

A significant benefit of flow batteries is their relative ease of manufacturing compared to lithium-ion counterparts. Invinity managed to assemble a battery stack with just 90 employees, primarily sourced from Scottish parts.

Throughout the project’s lifespan, Mullen has maintained that “on a cost-per-cycle basis, it offers more value than lithium.” While the upfront costs are higher than those for lithium batteries—Invinity estimates around £100,000 per container—the longer lifespan without capacity loss and the absence of flammability means no costly fire safety equipment is necessary. The shipping container is already deployed next to Vibrant Motivation in Bristol, Oxford Auto Chargers, casinos in California, and solar parks in South Australia.

“We can commission the entire site within a few days,” Mullen remarked.

Invinity is valued at just over £90 million in the London AIM junior stock market and aspires for the UK to spearhead the flow battery niche.

UK manufacturing could be favorably considered in government contests for support under a “cap and floor” scheme that ensures electricity prices remain within a specified range. Should they succeed, the company anticipates a substantial increase in production from its current rate of five containers per week. Mullen envisions the possibility of employing up to 1,000 workers if the company flourishes.

“The potential for growth is immense,” Mullen stated. “Have we moved past the question of whether technology can scale effectively?”