Formosa Smart Energy (FSE) has announced that the first phase of its battery cell and module plant in Changhua will commence mass production in November 2024.
FSE president Hui-chi Liu stated that the company aims to achieve full capacity utilization of the 2.1GWh production line by 2025. The firm has been securing orders since 2023 to meet the battery demands of semiconductor giants and US artificial intelligence (AI) data centers.
Liu noted that even before the completion of the Changhua facility, domestic and international companies have shown strong interest in various applications, including energy storage systems, uninterruptible power supplies (UPS), and electric vehicles. The customer base includes Taiwanese semiconductor manufacturers seeking UPS battery cells and US battery module manufacturers looking to source cells for AI data centers.
FSE is actively pursuing orders in the automotive and energy storage sectors. If the company reaches its full capacity utilization target by 2025, it expects to generate revenue exceeding NT$10 billion (approx. US$310.39 million). Liu also mentioned that while the US Inflation Reduction Act mandates that battery modules be manufactured in the US, battery cells can be produced overseas. Currently, FSE's strategy involves collaborating with local battery module manufacturers, although the company has no immediate plans to establish a module plant in the US.
Liu stated that approximately 60% of the output from the first phase will be allocated to the domestic market, with the remaining 40% targeting overseas markets. The initial phase will focus on producing 50Ah cells for high-power applications to meet customers' demands in the chipmaking industry, as well as energy-type 67Ah cells for applications like energy storage cabinets and electric vehicles. Large-format battery cells will be excluded from production in this phase due to safety considerations.
FSE has secured orders from two domestic electric bus manufacturers. The company plans to continue collaborating with vehicle manufacturers to develop power battery packs that utilize high energy density and long cycle life domestic battery cells for various electric commercial and passenger vehicles.
Regarding the delay in the official opening of the Changhua battery plant, which was initially scheduled for July, Liu explained that it was due to multiple factors. These included the need to reinforce the land reclamation area for safety, implement upgrades to the fire protection system, and address the complexities of constructing a 5GW production facility on a 6.1-hectare site, which led to the adoption of a vertical building design.
All-solid-state battery development
To prepare for next-generation battery technology, FSE is collaborating with Ming Chi University of Technology to develop all-solid-state batteries.
Liu noted that the company has secured 19 patents across Taiwan, the US, China, and Japan, with an additional ten patent applications pending. The pilot production line for the first phase of all-solid-state batteries is expected to be completed in October, focusing on producing cathode and anode materials and solid electrolytes. The second phase, scheduled for completion in 2025, will involve stacking and assembling soft-pack all-solid-state batteries, initially targeting the consumer electronics market.
Liu set ambitious targets for FSE, aiming to achieve an energy density of 400 Wh/kg for all-solid-state NCM battery cells and 300 Wh/kg for all-solid-state LFP battery cells, with pilot production scheduled for the second quarter of 2027.
