The Rise of EV OEMs in the BESS Market

Rimac are the latest EV manufacturer to extend their activities into the stationary BESS market, with first prototypes to be released later this year ahead of mass production in 2025. These will be start-of-the art Energy Storage systems, breaking barriers in terms of performance and software management. 

There's been a growing number of OEMs wake up to the huge market potential of stationary storage - BYD have been in the BESS game for some time, and over recent years we've seen Tesla's Energy division have a resurgence, Volvo Energy (Geely) established, and Volkswagen's Illy group.

It makes sense - as an automotive group, you already have world class engineering and production capabilities to call upon for new offerings (the technical specs of Rimac's SineStack will be very impressive) along with a trusted global brand reputation. As we move through the decade we'll see innovations like V2G come into play, so offering customers a “one stop shop” for their EV, BESS, and EMS needs, will be attractive. You've then got the wider opportunities that C&I and small microgrids can offer. 

It's exciting to see the big boys get involved, but also raises concerns in my head that we may start to see market consolidation with limited room for small and medium players to thrive. 

Having focused on the repurposed and 2nd life EV battery space a few weeks ago, this trend gives you food for thought as to whether that business model needs a rethink. If the major OEMs are now bringing their own BESS system production in-house, where is the value case for them to outsource batteries to a 3rd party? 

What we could well see is many of these battery repurposing / 2nd life start-ups being acquired and brought in-house by the OEMs, alongside their own battery recycling divisions.

I'll be interested to see how this plays out over the next couple of years!

I lead the Energy Storage practice at Hyperion Executive Search. We help clients along the battery and ESS value chains, to hire great senior and executive talent. If you're looking to scale your team, I'd love to discuss how we can support you. Contact me at david.beeston@hyperionsearch.com