Transcript
Len Vermillion: What trends drive the Li-ion market?
Kenny Marks: It's good to look at it from both the demand and supply sides because there's a lot happening in this space. There's been a big increase in the adoption and growth of electric vehicles.
As more renewable energy is used, it increases the need for energy storage systems. This, combined with traditional uses of Li-ion batteries like consumer electronics, results in an increased demand for batteries across the globe.
Shifting to supply, there are policies in place around supply chains and incentives for startups, joint ventures, partnerships and vertical integration that result in a massive amount of new investment globally, as well.
Vermillion: What challenges face this industry?
Marks: The Li-ion value chain has complex processes to get to the battery in EVs driving on the street, whether it’s the upstream extraction or processing piece, building the battery itself, or the recycling of the battery when at end-of-life. All of these verticals face unique challenges, but regardless of where in the value chain or the project customers may be, we see some common challenges.
A lot of customers wonder how to shorten project timelines without dramatically increasing risk. One thing happening is the use of pilot projects to learn quickly what works and what doesn’t at a smaller scale. The challenge becomes how to leverage those learnings and scale up for production.
Once up and running, quality is incredibly important. The question becomes how to ensure that the most effective control strategies are in place.
Also, no matter what industry you're in, sustainability is a big topic. For example, how to build facilities and operate plants more efficiently and effectively when it comes to water and energy usage. There is also a lot of investment and innovation around making a more circular supply chain. That includes reclaiming minerals from end-of-life batteries and reintroducing them into the value chain.
Vermillion: How does Emerson address the challenges customers face?
Marks: We're engaged and partnering with customers of all types—from startups to new joint ventures and partnerships to companies that have been in this space for a while and are growing or vertically integrating. As we talk to each customer, it's important for us to engage early and understand their unique challenges. Every project has different goals and complexities.
We address those challenges through a combination of things. One is our background and experience in process control and automation. We've built an innovative, easy-to-use DeltaV™ distributed control system that has been relied upon by customers across the globe in all major industries. And our knowledge of how to apply this comprehensive suite of technologies has helped ensure customers meet their business needs today, and in the future. Also, our global teams and consistent execution process help ensure that, no matter where the execution is happening, it is done effectively and efficiently.
Vermillion: How do you help businesses get to market quickly?
Marks: Normally, when you try to do things faster there's a tradeoff when you eliminate steps. You can do things differently, but you're probably adding risk in another phase of the project. It might be shifting risk from project execution to startup, for instance.
We look at how we can make it less of a tradeoff by using new processes enabled by new technology and tools, so that when we shorten and eliminate steps in the project execution, we're not adding risk at another phase. For example, Emerson's Remote Virtual Office (RVO) can do cloud engineering, so no matter where the project teams are, they can work together and collaborate across disciplines of the project. By leveraging Emerson's configure to order (CTO) cabinets, we can eliminate hardware FAT requirements and do FATs entirely virtually, within that RVO environment. And then, using Smart Commissioning in DeltaV and AMS Device Manager, we can further shorten project execution by eliminating tasks and performing hardware and software configuration in parallel. This highly-automated device commissioning software not only reduces steps, it also eliminates risk.
Vermillion: Companies probably have automation software on their minds. How can you help?
Marks: It’s a top-of-mind conversation with a lot of customers. Our DeltaV portfolio addresses key challenges throughout the lithium value chain and helps optimize the value chain from the mine to the gigafactory.
Whether they're working on one project in one part of the value chain, or they're working on a multiphase project that's vertically integrated and touching multiple parts of the value chain, they know that they are working with an automation partner that has the technology and solutions to support them. Again, you think about risk, having that one partner really helps from a communication standpoint and eliminates touchpoints.
Vermillion: How can Emerson continue to meet customer demands while delivering high quality and compliance?
Marks: We've already touched on scalability. To expand a bit, the key is the ability to scale without impacting operations. The ability for customers to scale and grow seamlessly from pilot to production, and then add functionality online when they want to—with no impact to their operations—is a core benefit.
The big challenge typically with bad quality is poor control leading to high variability, and that's true here as well. There's complex, multi-input, multi-output processes we see in this industry that benefit from advanced control technology in addition to traditional PID control. Using the combined Emerson and AspenTech portfolio, customers can bring in Aspen DMC3™, a model predictive control platform, and enhance their quality
Then there’s artificial intelligence (AI) and analytics, and I think we're just seeing the beginning of how that technology can be used for multiple applications including quality. However, having good data is the key foundation to be able to leverage AI to improve your business decisions, improve your control, and learn about how different actions impact your operations. Again, regardless of where our customers are at in their journey to commercialized production and beyond, Emerson and our broad portfolio of automation solutions can help.