Whatās the equivalent of the chicken-and-egg problem in industrial digitalization? You need data to optimize production, but production has to be running to generate that data.
This classic loop is hitting hard in high-growth industries like battery manufacturing. When launching a gigafactory, high-speed production lines need data-driven optimization to cut down on waste. But hereās the bindāuntil that factory is up and running at scale, you simply donāt have the data you need. Itās costly, too: according to Fraunhoferās Mastering the Ramp Up of Battery Production report, initial gigafactories see scrap rates of 15-30%, and every 1% of scrap can bleed about ā¬10M per year.
The same problem holds back digital and AI startups focused on industrial optimization. They need high-volume production to gather data, train algorithms, and prove their value, but their clients arenāt producing enough data yet to make it worthwhile.
The Solution? The Foundry Model.
A new breed of battery companies is emerging to bridge this gapādedicated cell and electrode foundries offering manufacturing-as-a-service. These foundries, operating with smaller capacities (a few hundred to several thousand MWh), work for multiple clients and specialize in providing the data-rich environment digital startups need to fine-tune optimization solutions.
By partnering with these foundries, both gigafactory operators and digitalization startups can gather the critical production data needed to minimize scrap rates before full-scale production begins. Fraunhofer is currently expanding its 200 MWh facility to 7GWh with exactly this idea in mind.
The result? Lower scrap, faster scaling, and positive cash flow soonerāshaving years off the ramp-up curve and setting up gigafactories for success.
š¬ Want to dive deeper into the foundry model or connect with an active electrode foundry? Drop me a message to learn more.