Device OEMs are tasked with a design process that incorporates numerous components and systems including power and battery storage. There often isn’t time to dive deep, assessing all of the options available.
In this article, Excell Battery shares it’s learnings from 40+ years of custom battery pack manufacturing and therefore cell and cell provider selection.
What OEMs Need to Know About Choosing Battery Cell Providers
There are three important questions that OEMs need to ask when choosing a cell provider:
Can the provider consistently and reliably supply the necessary cells?
What are the technical specifications required for the application (e.g. discharge rate and capacity requirements)?
Can the provider produce cells that meet the required specifications?
When selecting battery cells and a cell provider, it’s important to be aware of some common pitfalls and misconceptions that OEMs might face. One significant challenge is limited market awareness. While conducting market research and identifying a cell provider offering a suitable product is a good start, it is important to recognize that the battery market is vast and diverse. Many ideal options for a specific application may not even appear in a Google search, requiring a more comprehensive approach.
Often, past experiences and time constraints may also limit the decision-making process. Without a dedicated battery expert, these factors can restrict an OEMs choice to a handful of preferred brands, none of which carry a cell that fits the ideal profile for the application.
An experienced custom battery pack manufacturer such as Excell can help OEMs overcome these obstacles, bringing the depth of knowledge and time needed to explore the cell and cell providers in the market.
Considerations for Choosing a Cell
It can often be challenging to recognize the specifications that are most important. An OEM engineer might prioritize capacity, while overlooking the factors that are critical to performance in their application. For example, selecting a high-capacity cell without considering its discharge rate can lead to reduced performance under high-load conditions.
Lithium-Ion Cell Considerations
Packs composed of lithium-ion batteries require a protection circuit. They also can’t be charged or discharged below zero degrees unless they are expensive, specialized cells. While some online vendors offer low-cost lithium-ion batteries, these may not meet the required specifications, or may not be capable of combining multiple specifications. OEMs should be aware that some of these cheap lithium-ion batteries are even known to simply have a tiny cell at the top of the can while the remainder is filled with sand. Any cells purchased from Excell will be sourced from a reputable supplier that stands behind their product and will be able to meet all the required specifications.
Cell Considerations for Hazardous and Extreme Environments
Cells that will be used in extreme environments or hazardous locations also necessitate specialized battery solutions. Devices used in these environments may require certification to identify safety hazards and reduce the risk of accidents. For example, they must pass a short circuit test without exceeding a set temperature. Although it might seem counterintuitive, cells with lower discharge rates often work best for applications in these environments. Higher-rate cells, capable of delivering high currents can rapidly heat up, potentially reaching these limits. On the other hand, older lower-rate cells release the same amount of energy over a longer period, resulting in lower peak temperatures.
There are various strategies that can be employed to achieve certification compliance, depending on the device and the certification requirements. One approach involves adding redundancies to increase internal resistance. Cells may also be encapsulated in thermally conductive potting compounds to help dissipate heat more effectively, reducing peak temperatures. However, these solutions come with trade-offs, such as reduced energy density or increased weight.
How Excell Battery Can Help
By partnering with Excell Battery, OEMs gain a reliable and knowledgeable partner in battery solutions. Our cell-agnostic approach and our deep understanding of battery technology enable us to deliver customized solutions that optimize performance, reduce costs, and meet the most stringent safety and environmental standards.
Let us help you navigate the complexities of battery technology and select the ideal solution for your specific needs. Contact us today to discuss your project requirements.
The rise of lithium-ion batteries has changed how we power our world. From electric vehicles (EVs) and e-bikes to household devices and even powering the electrical grid, they are prevalent in more applications than ever. According to the European Commission, the global demand for batteries may increase up to 14-fold by 2030. However, as their popularity surges, so has the push for stronger safety and environmental regulations.
Why Lithium-Ion Battery Safety Needs Attention
The potential safety risks associated with mishandled lithium-ion batteries are causing concern. Incidents during transport or storage within residential or commercial buildings can lead to devastating property losses and significant increases in insurance premiums. Some residential buildings, hospitals, and transit systems are preemptively banning e-bikes and other products powered by these batteries within their facilities. Stakeholders in the battery industry must address these concerns to ensure the continued adoption of lithium-ion technology.
Another issue arising as lithium-ion batteries become more popular is consumer awareness of proper disposal methods. Disposal of lithium-ion batteries in regular waste bins can be dangerous. Crushing during trash collection and handling can cause them to ignite and potentially cause fires. These batteries not only power electric vehicles, e-bikes, e-scooters, and small personal devices like phones and laptops, but also unexpected items like singing greeting cards. Some argue that their use in unexpected products is irresponsible by manufacturers, as consumers may unknowingly dispose of them improperly.
EU New Battery Regulation 2023/1542
To combat these issues the European Union (EU) published the EU New Battery Regulation (EU) 2023/1542 on July 28, 2023, in the Official Journal of the European Union. Just weeks later on August 17, 2023, the Regulation was officially put into effect. It covers all batteries available on the EU market and aims to improve sustainability, safety labeling, and waste management. The Regulation supports the shift to a circular economy and increases the security of supply for raw materials.
Scope of applications and battery sizes
The EU New Battery Regulation includes both rechargeable and non-rechargeable batteries. It is relevant for manufacturers of cells, modules, battery packs, energy storage systems, EV battery systems, and end products utilizing batteries. The regulation itself casts a broad net, encompassing battery categories such as waste portable batteries, electric vehicle batteries, industrial batteries, starting, lightning, and ignition batteries, and batteries for light means of transportation such as e-bikes, mopeds, and e-scooters. While specific rules within the regulation place stricter requirements on larger batteries exceeding 2 kWh, batteries of all sizes are affected.
However, small to medium-sized enterprises with less than 250 employees and an annual turnover of up to 50 million Euros or a balance sheet total of no more than 43 million Euros are exempt from many of these requirements unless they produce batteries over 2 kWh capacity. This includes Excell Batteries as their largest rechargeable battery in 540Wh, and the largest primary stick packs are approximately 2kWh.
Key requirement: replaceable batteries for portable devices
As part of the Regulation, the EU will require all portable devices sold within the bloc to have replaceable batteries by 2027. This applies to all smartphones, laptops, and tablets, including those produced by Apple, Samsung, and Google. This is just one example of how the Regulation will likely significantly impact the rest of the world, despite being an EU directive. It is unlikely that manufacturers will produce two different versions of their products – one for the EU and one for the rest of the world.
Key requirement: battery passport
To ensure compliance with the EU New Battery Regulation, EV and industrial batteries over 2 kWh will be required to have a unique digital battery passport accessible via a QR code integrated into their label. The battery passport will include relevant data from the entire battery lifecycle including battery chemistry, capacity, performance, safety, cycle life, carbon footprint, and calendar data.
Key requirement: label markings
The EU New Battery Regulation also imposes new requirements for CE markings. An abbreviation of “Conformité Européenne,” or European conformity—the CE mark has been around since 1993, and serves as a way for manufacturers to declare that their product complies with all the applicable legal requirements within the European Economic Area.
All portable batteries sold within the EU market will need to carry the CE marking by August 2024. Compliance is self-declared and obligations depend on the type of battery.
The current best practices for battery label compliance are:
CE Mark,
Makers mark,
Assembly site
Serial number,
Model number,
Warning/safety information,
Battery chemistry
Ah,
Wh (best practice, but also mandatory for Li-Ion batteries),
Voltage (best practice, but also mandatory for Li-Ion batteries),
Crossed-out waste bin symbol
Lithium battery recycling symbol
IEC series/chemistry/parallel coding
For lithium primary (non-rechargeable) batteries, the amount of lithium in grams is also required.
Those best practices are highlighted on the portable battery example label below:
Figure 1: Current Battery Labeling Best Practices (Portable Batteries)
Key requirement: responsible sourcing
The EU New Battery Regulation echoes existing initiatives like RoHS and REACH by including language that discourages battery manufacturers from using certain materials. Additionally, the regulation mandates responsible sourcing of base materials, prohibiting the use of conflict minerals obtained through practices like slave labor, environmentally damaging mining, or practices that violate health and safety standards.
Timeline
The EU New Battery Regulation encompasses a significant number of mandates that will gradually roll out over the next few years with the goal of reaching climate neutrality by 2050. Stakeholders in the battery industry should be aware of the following timeline for the Regulation. It is of note that most of the upcoming requirements of 2023/1542 only apply to batteries greater than 2 kWh at this point. As we approach the following dates, it is important to check the criteria for any regulatory implementations:
February 18, 2024: Mandatory enforcement of the Battery Regulations
August 18, 2024: Mandatory enforcement of safety requirements for stationary battery energy storage systems, performance and durability requirements for rechargeable industrial batteries with a capacity greater than 2 kWh, LMT batteries and electric vehicle batteries, conformity assessment procedures, and economic operator obligations
February 18, 2025: Mandatory enforcement of carbon footprint requirements for electric vehicle batteries
August 18, 2025: Mandatory enforcement of supply chain due diligence / Mandatory enforcement of waste battery management
February 18, 2026: Mandatory enforcement of carbon footprint requirements for rechargeable industrial batteries
February 18, 2027: Mandatory enforcement of battery passports for rechargeable industrial batteries larger than 2Kwh and electric vehicle batteries / Removability and replaceability of portable batteries and LMT batteries
August 18, 2028: Mandatory enforcement of requirements for recycled materials in rechargeable industrial batteries with a capacity greater than 2 kWh, except those with exclusively external storage, electric vehicle batteries, and SLI batteries, conformity assessment procedures, and economic operator obligations.
What EU New Battery Regulation (EU) 2023/1542 Means for OEMs
OEMs that may be impacted by the EU New Battery Regulation (EU) 2023/1542 should involve their battery suppliers early in the product design process to ensure timely compliance. All companies doing business within the European market must undergo IEC 62133 testing to verify their batteries meet safety requirements. Additionally, they need to meet labeling requirements and best practices, including affixing the CE mark. The complete directive can be found here.
The EU New Battery Regulation isn’t the only set of rules that manufacturers and users need to be aware of. A few examples include the previous EU Battery Directive, which has been in effect since 2006. It focuses on the chemical content of batteries, and recycling practices, and establishes requirements for battery capacity, and rating.
Another important directive is the Electromagnetic Compatibility (EMC) Directive (2014/30/EU). It ensures that electric and electronic equipment, including those powered by batteries, don’t interfere with the functionality of other devices through electromagnetic emissions.
Applicable both inside and outside of the EU, the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO) are introducing new regulations specifically for the transport of lithium-ion batteries. These regulations, effective on January 1, 2025 , limit the state of charge for all lithium-ion batteries transported by air, land, or sea to 30%. It applies regardless of whether the batteries are shipped loose or packed as part of an end product.
Excell Battery Company: Your Partner in Compliance
With over 30 years of experience, Excell Battery Company has established itself as a trusted partner for OEMs navigating the complexities of battery regulations. Through a commitment to continuous learning, Excel maintains a strong understanding of the ever-evolving regulatory landscape. This includes changes in regulations, training requirements, label requirements, and packaging requirements. Excell works closely with their customers to ensure compliance and create a better battery industry for everyone.
The EU’s New Battery Regulation 2023/1542 marks a significant step toward a more sustainable and responsible future for lithium-ion batteries. By addressing safety concerns, promoting responsible sourcing, and ensuring steps toward circularity, the Regulation will ensure the continued growth of lithium-ion technology. While the regulation targets the EU market, its impact will likely be felt globally as manufacturers strive for consistency across their product lines.
How do you use a CR4-equipped battery to find out what’s happening downhole? How do you diagnose tool and/or battery failures? How can you learn more about the conditions of a downhole run? Play the following webinar recording about Downhole Battery Data Analysis with Criterion 4 to find out.
The webinar will cover several topics, including:
Live demo of the CR4
Important data to look out for when analyzing downhole drilling and how to interpret
In this webinar/panel discussion, Excell Battery and Ultralife will provide insider, specialist information for engineers and technical decision-makers based on insights and lessons from our years of experience in remote monitoring and asset tracking battery manufacturing.
We will discuss:
Overall trends in the industry
Limitations and ideal applications for different battery chemistries
In this Q&A, Excell Battery’s Houston Regional Manager Bob Fay discusses the basics of downhole battery analysis and how to use Criterion 4 to maximize your downhole battery and tool investments. For more on the subject, you can watch our latest webinar HERE.
Q: Why is accurate and reliable data imperative to a downhole drilling operation?
Bob: When something happens to a tool or battery downhole, accurate and reliable data can help you find the cause and troubleshoot. Battery data from a Criterion 4-equipped battery gives operators insights into potential issues.
Q: Are there any common misconceptions amongst operators and/or manufacturers?
Bob: Operators and manufacturers often underestimate the high-resolution data that Criterion 4 can provide. Many do not realize the quality of data that this tool offers, leading to misinterpretations or missed opportunities for a better understanding of downhole conditions.
Q: Is there a problem in interpreting the data? Do operators struggle with understanding the amount of data provided?
Bob: Interpreting the data collected by Criterion 4 can be challenging for some operators. It is important for them to be trained to use the data effectively to make informed decisions. Understanding what metrics to look for and how to interpret them can help operators gain valuable insights.
Q: What are the top metrics that an operator should pay attention to?
Bob: Operators should focus on checking the voltage versus current output. That seems to be the number one indicator of issues that have occurred downhole. Whether they’ve used up the battery, or the tool has a failure causing a short circuit, you’re able to look at the current curves to see what that tool is doing. Comparing that against the voltage curve allows you to check if the battery is reacting appropriately to different conditions. Additionally, the CR4 has a very sensitive shock and vibration monitor which can give you a pretty good idea of the downhole conditions.
Q: How can an operator get the best usage out of a Criterion 4 battery?
Bob: The biggest thing is making sure you have sufficient memory capacity to cover the entire run downhole. There are tools in the Criterion app to optimize the amount of data you collect over a period of time, and using them ensures you gain a comprehensive picture of downhole conditions.
Q: What are the limitations of today’s technology?
Bob: One limitation of today’s technology is that the CR4 gauge is a consumable item that cannot be reused. While it collects accurate data from downhole conditions, the cost of the gauge needs to be balanced to ensure it does not significantly increase the overall battery price. But considering what it does cost, it is a very powerful electronic board that collects very good data from downhole conditions.
Q: Where is the technology headed?
Bob: Well, we do have Criterion 5 in the works. We’ll keep specific details confidential for now, but the upcoming upgrades are expected to enhance data analysis capabilities and further improve operations in the industry.
Q: With respect to downhole drilling data analysis, are there any current trends you see?
Bob: I think the biggest thing I find when I look at the data are blown fuses. The battery’s fuse is blown, and so why did that happen? So what are the signs that cause the batteries to blow the fuse? The Criterion data can show that to you if you know how to look for it.
For more information, watch our latest webinar on Downhole Battery Analysis With Criterion 4 HERE.
In this webinar, we will provide current and up-to-date information for procurement professionals in the medical device industry on the dynamic medical battery market. We will explore the latest trends and supply challenges, equipping you with the knowledge and risk mitigation strategies to overcome today’s and tomorrow’s obstacles. The following topics will be covered:
Understanding medical equipment battery applications, the importance of reliable power sources, and key factors to consider when evaluating supply options,
Regulatory considerations, including costs and expected timelines
Current trends in the medical battery industry/market from supply chain and technical standpoints, including those driven by EV development,
Q&A session, including perspective on the new EU Battery Regulation 2023/1542
In the world of downhole drilling, precision and reliability are paramount. Technological innovations are continuously reshaping the industry landscape. One of the innovations currently gaining momentum is the use of Controller Area Network (CAN) Bus communications in downhole drilling batteries.
CAN Bus, a sophisticated and robust platform, opens the doors to real-time communication among components. Incorporating CAN Bus technology in downhole drilling batteries not only boosts operational efficiency, and minimizes waste, but also provides a significant competitive edge to tool manufacturers and end users.
The Power of CAN Bus:
Renowned for its exceptional reliability and ability to function effectively in electrically noisy environments, CAN Bus technology stands out as a robust solution. It provides both the hardware and software framework needed to facilitate seamless communication within complex systems.
In the context of downhole drilling, where electrical noise and interference present challenges to maintaining clear communication between systems, CAN Bus emerges as a promising option. When integrated into downhole drilling batteries, this technology ensures the lines of communication are kept open even when faced with less-than-optimal conditions. This resilience ensures uninterrupted performance in the demanding downhole environment.
A Shift in the Industry:
In comparison to alternative communication protocols, such as RS485 and proprietary QBUS, CAN Bus is emerging as the modern standard for downhole drilling batteries. This shift is primarily attributed to CAN Bus’ adaptability and its ability to tolerate electrical noise. However, a more advanced version, known as CAN FD is making waves in the automotive sector. This iteration facilitates faster data transmission and offers the ability to dynamically adjust data rates, making it an exciting prospect for the future of downhole drilling.
Practical Applications of CAN Bus:
The technical capabilities of CAN Bus bring cost and operational benefits for users of downhole drilling tools. Real-time communication with batteries enables on-the-fly monitoring of battery conditions, charge percentages, and overall performance. Manufacturers can even implement intelligent battery depletion strategies, prolonging battery life and reducing waste. Consider the scenario where two batteries are used together until a certain threshold is reached, resulting in one being discarded despite having unused capacity. With CAN Bus, batteries can be systematically depleted in sequence, optimizing their use and significantly cutting costs.
Cost Savings:
The ability to monitor battery conditions and manage depletion strategies through CAN Bus directly translates into time and money savings. Mike MacWillie, Excell Battery’s Director of Engineering provides insight into typical scenarios with and without CAN Bus communications;
“[The batteries] might still have 20% of their life left, but that’s not enough to complete a run. Whereas if you can communicate with batteries in real-time, you could put the 20% battery and a hundred percent battery into the same tool, deplete them one at a time, switch between them, and then completely deplete both. That 20% [battery] has an idea about when it’s going to shut off and switch over to the other one. So instead of throwing away that 20% capacity, you’ve used it on the next run even though it doesn’t complete the whole task”.
By implementing intelligent battery management, manufacturers can extend battery lifespan, enhance overall operational efficiency, and reduce the need for frequent replacements. How do the cost savings add up? MacWillie explains;
“There are some customers that run [batteries] once and throw them out, regardless of what’s left. There are some customers that will run them three or four times. And then there’s maybe 10% capacity left in it, But even 10% of a thousand dollar battery multiplied by a couple of hundred batteries a quarter, that’s a significant cost.”
Beyond just cost savings, this approach also minimizes downtime, boosting productivity and increasing competitiveness.
Elevating Tool Capabilities:
Legacy equipment may lack the advanced sensors and data collection capabilities of their modern counterparts. Retrofitting these tools with additional sensors can be both complex and costly. However, manufacturers can tap into the sensor data already available within the batteries by utilizing CAN Bus-equipped technology. Through CAN Bus communications, vital metrics become accessible, even if the tool itself lacks these sensors.
Imagine an older downhole drilling tool without a rotation sensor, a critical component for evaluating operational efficiency. Instead of investing in an expensive retrofit, manufacturers can leverage the rotation sensor present in the CAN Bus-enabled battery. By extracting rotation data from the battery via CAN Bus communications, the tool becomes capable of monitoring and optimizing its performance, all without expensive modifications..
A Success Story:
Now, let’s take a look at a real-life example of how CAN Bus technology has revolutionized the downhole drilling industry. A customer of Excell Battery’s which manufactures downhole drilling tools recognized the need for real-time communication and intelligent battery management. To harness these capabilities they turned to Excell’s Criterion batteries with built-in CAN Bus capability.
This collaboration led to the development of a custom CAN Bus communication protocol tailored to the manufacturer’s specific tools. Integrating this protocol into their equipment enabled them to establish direct real-time communication with their batteries. As a result, the manufacturer gained the capability to closely monitor battery conditions, charge levels, and other critical parameters while the tools were operational.
One of the remarkable outcomes of this partnership was the introduction of sequential battery depletion strategies. In the past, batteries were often discarded prematurely, resulting in wastage of remaining capacity. The implementation of intelligent battery management through CAN Bus revolutionized their approach. By sequentially depleting batteries, they maximized the usage of each cell, ultimately reducing waste and overall battery costs by optimizing battery lifespan.
The success of this tool to reduce end users’ costs and downtime propelled it to become an industry standard. The cascading impact of intelligent battery management, empowered by CAN bus, reverberated through their overall operations, improving efficiency and effectiveness.
Looking Ahead:
As the downhole drilling industry continues to evolve, embracing technological advancements like CAN Bus communications can provide a significant competitive edge. The capability to monitor, manage, and optimize battery performance in real-time is a game-changer. Manufacturers and end users that harness the power of CAN Bus can enhance operational efficiency, minimize waste, and maintain a strong foothold in a rapidly changing landscape.
In a world where precision, efficiency, and costs matter more than ever, CAN Bus communications are leading the charge toward a more intelligent and connected future for downhole drilling batteries. As the industry marches forward, those who embrace this technology stand to reap substantial benefits, both in terms of operational excellence and long-term success.
Check out the following videos from our MENA Downhole Battery Training webinar, which took place on Tuesday, June 20, 2023. In this webinar, Bob Fay (Houston Regional Manager) and Trip Tripicchio (Business Development Manager):
Discuss Excell’s experiences of shipping to MENA countries
Dive into the quality and accuracy of downhole measurements
Outline application requirements
Give a practical demonstration of Excell’s Criterion downhole battery software
Explain Criterion’s ability to fulfill application requirements
Introduction & Product Overview
Demonstration of Excell’s Criterion Downhole Battery Software
Case Studies of Criterion Data & Excell Battery’s Experience of Shipping to MENA Countries
High Reliability, Expert Support, and Logistics for MWD in the MENA Market
For MWD operations, a reliable battery supplier can mean all the difference. With every location presenting its own set of challenges, how do you choose the right one?
In this interview with Bob Fay, Regional Manager of Excell Battery’s Houston office, we discuss the very real benefits of relying on experience and a proven track record. Bob discusses the downhole battery supply market globally, as well as issues specific to the MENA (Middle East and North Africa) region.
Over 38 years of experience provides Excell with the ability to build and recommend batteries that can be relied on, as well as get them to their destination in a safe and timely fashion.
The landscape of the downhole battery supply market
Q:
Where are end users traditionally getting their batteries from? Where are the major suppliers geographically?
Bob:
MWD/LWD Batteries are primarily supplied by a group of companies in North America to operations in North America, MENA, and South America. I have heard about Asian battery pack sources, but we’re not exposed to them, so we don’t know who they are.
But most of all, the major customers in North America and the Middle East are being supplied from North America, manufactured in Canada and the U.S.
Regional problems faced when supplying to MENA customers
Q:
What are some regional problems that are very typical to come up in supplying downhole batteries to MENA (Middle East and North Africa)?
Bob:
Each country has different requirements, which present their own challenges. They have different paperwork, shipping requirements, customer requirements, and some countries have temporary embargoes on shipping dangerous goods by air.
Saudi Arabia, specifically, is the most challenging as far as the requirements they have for import. Due to the difficulties of shipping lithium batteries directly into Saudi Arabia, we need to be very creative in how to get batteries into the country. In addition, Saudi Arabia has specific testing certification requirements that must be followed in order to import lithium batteries. But we’ve been able to overcome that by understanding how the process works and the right way to go about the procedure and paperwork.
Why should a downhole operation choose an MWD battery supplier based on experience?
Q:
How do Excell Battery’s experience and background give you the tools to determine what needs to be done and how you respond to these situational cases?
Bob:
The experience that Excell Battery has helps us understand the downhole tools customers use and, therefore, what type of batteries are needed to power the tools. Most of the customers are using a limited number of downhole tools made by OEMs in North America. We have strong, ongoing relationships with all the major tool manufacturers, so we have knowledge and experience with the battery designs that go into those. Customers just have to let us know what tool they are using, like APS, Tensor, or Applied Physics, and as a result, we understand what type of battery they need. This also helps us understand what operational requirements they may encounter with the battery, and we can help them with that as well.
What should a MENA downhole battery purchaser look for in a supplier?
Q:
If you’re a user of a downhole battery in MENA, what should you be looking for in a supplier to give you that peace of mind that they can get a reliable product to them in a safe and timely fashion?
Bob:
First and foremost, you’d want to make sure that the supplier knows how to make a good quality battery that can withstand the rigors of the downhole environment, which includes high temperatures, high shock and vibration. These batteries must use high-quality cells from reputable cell manufacturers, and all components must be capable of the downhole environment. Having a battery monitoring gauge that works reliably and accurately, has become a very important requirement of our customers.
As for safe and timely transportation, we need to make sure batteries are authorized to ship. In other words, each battery must have the appropriate UN 38.3 testing completed to allow us to ship legally. All batteries manufactured by Excell Battery meet this requirement. You also need to know how to properly package the batteries in appropriate Dangerous Goods packaging so they can arrive at the destination without incurring damage from transportation. There’s also the logistics, as I mentioned before, and understanding the best way of getting it there.
Logistics to MENA can be a headache but we’ve developed relationships with different freight forwarders locally that can get batteries to specific customer locations. Not all freight forwarders are able to get batteries to all countries but we work with a certain group of freight forwarders that we know can get into certain countries like Saudi Arabia, Oman, Turkey, and UAE.
Q:
Is the manufacturing quality of the batteries a common issue in the downhole market?
Bob:
I would say the long-standing suppliers in North America all know how to make an acceptable downhole battery. So it’s probably not necessarily an issue, but new companies trying to come in may not have developed a good way to make a battery to withstand the downhole environment and the specific tool requirements. Also, a new supplier’s battery monitoring gauge may not be up to par in terms of reliability or accuracy.
Trends in the MWD battery supply market
Q:
Do you see any trends or changing regulations in the battery supply market to keep your eye on?
Bob:
The prices of all battery pack materials have increased. Lithium demand, in particular, is rapidly growing because of the EV market. Thus, lithium costs are drastically increasing as well as putting pressure on overall supply. We keep a close eye on our cell suppliers to make sure that they are able to adequately supply products, at a fair price, and with good quality.
Q:
Earlier, you mentioned that until recently, you need to be very creative in how to get batteries into the country. Do you think there is a movement for Saudi Arabia to be more open to foreign supply?
Bob:
I think they have to be open to foreign supply because there is no in-country supply of lithium batteries. On top of that, we’re seeing a lot of expansion of horizontal drilling in the Middle East, so naturally, there’s a need for more MWD batteries, which is our forte at Excell Battery.
How Excell Battery Uniquely Understands the MENA Downhole Battery Market
Q:
Is there anything else you’d say that reflects how Excell Battery uniquely understands the MENA market?
Bob:
It’s important for us to get to know our customers’ operations and requirements well. We like to communicate with our customers often, and we meet a lot of the customers face-to-face. We also understand the tooling requirements well. Thus, we understand what they’re looking for when they buy a battery for a particular tool.
An experienced downhole battery supplier will help you navigate your unique challenges
An experienced MWD/LWD battery supplier is one that has spent years developing procedures to ensure the safe and timely delivery of batteries to their destination. It also has strong relationships built with customers in varying regions and with the manufacturers that make the tools that they use. This combination ensures that its understanding extends beyond the battery and into the challenges of various downhole operations. Excell Battery, with our 38-plus years of experience in MWD/LWD batteries, can support downhole operations in this manner.
