Smart Grid Storage: GE and FIAMM Target Molten Salt Batteries. But Can They Compete with NGK?

By Steven Minnihan

Last week, GE Transportation introduced its battery for Smart Grid storage –  a sodium halide battery dubbed Durathon, which boasts a cycle life of up to 20 years. Additionally, the company announced a manufacturing plant for the battery in Schenectady, NY, along with a $150 million investment in advanced development of the battery.  GE Transportation has been developing molten salt batteries since it acquired Beta R&D in 2007, and Durathon most likely uses sodium nickel chloride technology, called the "zebra battery.”

Similarly, the only other sodium nickel chloride battery provider, MES-DEA, was sold to FIAMM Group earlier this year. The two companies restructured to form FZ Sonick, which will focus on energy storage applications primarily for the integration of renewable power sources, such as solar and wind, with the grid. MES-DEA previously focused on automotive applications for its batteries, while FIAMM group has targeted the storage market. FZ Sonick will continue using MES-DEA's manufacturing facility in Switzerland with an annual capacity of 90 MWh. The company plans to increase this to 170 MWh in the next five years.

While GE Transportation and FZ Sonick are the only two contenders with a sodium nickel chloride battery, NGK Insulators are experiencing much success with their sodium sulfur (NaS) battery after selling approximately $177 million of the batteries in FY 2008.  Also, NGK has recently added $106 million worth of batteries for use in a wind farm in Rokkasho, Japan, and closed an additional $638 million deal with the United Arab Emirates for 300 MW of batteries over the next three to four years.

The NaS and Zebra Technologies have similar performance and price points, putting the three companies in direct competition. However, NGK's customers have complained recently due to the company's decision to increase prices in order to defend its margins. While NGK has the best-selling battery for large-scale grid storage today, the entrance of GE and FZ Sonick into an increasingly competitive marketplace means that the days at the top may be numbered.

Steven Minnihan is a research associate for Lux Research, which provides strategic advice and on-going intelligence for emerging technologies. Leaders in business, finance and government rely on Lux Research to help them make informed strategic decisions. Through their unique research approach focused on primary research and their extensive global network, they deliver insight, connections and competitive advantage to their clients. For more information, visit the Lux Research site or contact Carole Jacques to become a Lux Research client.