FUCHS strengthens e-mobility business and enters the battery market
Batteries in electric cars, electric airplanes, tools or garden machines. The battery market is exploding. And we are part of it! With expertise in fluids, production and logistics. Together with the start-up E-Lyte Innovations GmbH, FUCHS is entering the battery market, enabling the set-up of a production plant for high-performance electrolyte solutions in the thousands of tons range made in Germany.
The Spanish market is in full transition towards the electric vehicle and Spain is positioned as an important nucleus for the production and development of lithium batteries in Europe.
FUCHS will present at the BIEMH the latest lubrication solutions for the manufacture of batteries and electric mobility that will be especially interesting for those companies that want to take advantage of the opportunities offered by e-mobility, adapting their processes to new requirements.
The FUCHS Group, which operates globally in the lubricants industry, has taken over 28 percent of the shares in E-Lyte Innovations GmbH. This young company develops and produces groundbreaking liquid electrolytes for high-performance batteries in the industrial and automotive sectors. "We are setting foot on new terrain outside the classic applications for lubricants. The world is changing rapidly and we don’t just want to keep pace, we want to actively meet the future: by entering a very exciting, globally fast-growing market with significant business potential," comments Stefan Fuchs, Chairman of the Executive Board, explaining the reasons behind the recent investment.
The Group launched its FUCHS2025 strategy program back in 2019. Over the next few years, this program will help the company take advantage of the opportunities presented by the megatrends of digitalization, sustainability, and e-mobility. The new investment will also feed into this, as it grants FUCHS access to the fast-growing market for electrolytes. This market is set to become increasingly important, particularly in and out of Europe, since electrolytes represent a key component of the lithium-ion batteries used in countless appli-cations, including e-mobility. FUCHS is investing around EUR 8 million in this new area of activity. The share purchase agreement also opens up the possibility of acquiring further shares on a step-by-step basis over time.
Although this market is uncharted territory for us, at FUCHS we are experts in developing custom-made solutions for special customer requirements and a very wide range of functional fluid applications worldwide," adds the CEO.
One thing the two new partners have in common is the fact that they are not looking to serve the mass market, but rather focus on promising high-performance applications. The investment represents an important step and extends FUCHS' expertise in the field of e-mobility. The Group already extended its portfolio in 2020 with FUCHS BluEV, a dedicated product line for the latest e-mobility applications.
“Although this market is uncharted territory for us, at FUCHS we are experts in developing custom-made solutions for special customer requirements and a very wide range of functional fluid applications worldwide.”
STEFAN FUCHS, CHAIRMAN OF THE EXECUTIVE BOARD AT FUCHS PETROLUB SE
The E-Lyte product technology also focuses on meeting specific requirements and is based on special performance characteristics, such as faster battery charging times. These are not only of vital importance for electric cars, but also hold potential for many other promising areas, such as drones, medical engineering, high and low temperature applications, or the aerospace sector.
"There is no longer one universal electrolyte for batteries and the differences between those available are becoming more and more pronounced. The rapidly developing battery technologies for a broad range of applications are causing skyrocketing demand for customized electrolyte formulas and ever larger production volumes. In order to cater for this, we need a local supply chain, not only because the electrolyte doesn't permit long delivery and storage times because of its limited shelf life," says Dr. Ralf Wagner, Managing Partner of E-Lyte Innovations GmbH.
In the next step, the required production infrastructure will be established jointly at the FUCHS location in Kaiserslautern, Germany to facilitate industrialization, scaling, and further growth. Funds are in particular being invested in the production facilities and laboratory equipment. Production is scheduled to begin in the summer of 2023.
In the next step, the required production infrastructure will be established jointly at the FUCHS location in Kaiserslautern, Germany to facilitate industrialization, scaling, and further growth. Funds are in particular being invested in the production facilities and laboratory equipment. Production is scheduled to begin in the summer of 2023.
German enterprise Customcells Holding GmbH, a leading international company in the development of special, high-performance lithium-ion battery cells, is the third partner in the joint venture.
“The rapidly developing battery tech-nologies for a broad range of applications are causing skyrocketing demand for customized electrolyte formulas and ever larger production volumes.”
DR. RALF WAGNER, MANAGING PARTNER OF E-LYTE INNOVATIONS GMBH.
Electric mobility, an opportunity for the Spanish market
The Spanish market is in the midst of a transition to electric vehicles. The new eco-sustainable measures have become a business opportunity and Spain is positioned as an important testing ground for the production and development of lithium batteries in Europe.
For the time being, the South Korean company Iljin has chosen Mont-roig del Camp, in Tarragona, to set up its electric battery components factory. These new facilities are expected to be operational in 2024, for which 600 million euros will be invested and 500 people will be employed. But it will not be the only investment in our country, as the Volkswagen Group, which includes the Spanish company Seat, has announced that it will install a battery cell factory in Sagunto (Valencia), thus becoming the third battery factory for electric cars in the group, along with Germany and Sweden. An operation with an investment of close to 3.5 billion euros.
The new eco-sustainable measures have become a business opportunity and Spain is positioned as an important testing ground for the production and development of lithium batteries in Europe.
FUCHS' latest lubrication solutions for battery manufacturing and electric mobility at BIEMH
FUCHS has become the best partner to meet the challenges of battery manufacturing and other challenges in the manufacture of electric vehicles. For this reason, at the next edition of the BIEMH fair in Bilbao, FUCHS will be present in Hall 1 - stand E 30presentinglubrication solutions related to electric mobility such as process fluids for aluminium, lubricants for electrical connectors, sensorisation and monitoring of fluids in service, as well as solutions for the manufacture and cleaning of battery cells.
FUCHS has become the best partner to meet the challenges of battery manufacturing and other challenges in the manufacture of electric vehicles.