INSIGHTS
BESS Quality Risks
A summary of the most common Battery
Energy Storage System manufacturing defects
February 2024
The Past Several Years Have Shown That Thermal Runaway Poses a
Significant Risk to the Energy Storage Industry
Data collected from CEA’s factory quality inspections of BESS systems has found that these risks still exist:
26%
of inspected energy storage systems had
quality issues related to the fire detection and
suppression system.
18% of inspected systems had quality issues
related to the thermal management system.
The following report highlights the safety issues above as well as a host of
other quality concerns.
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CEA Has Conducted Factory Quality Audits On Over 30 GWh of Lithium-
Ion Energy Storage Projects
• 320+ inspections in 52+ Battery Energy Storage System (BESS) factories
• 64% of tier 1* BESS cell manufacturers audited worldwide
• 1300+ total manufacturing issues identified
USA China India Vietnam South
Korea
Locations of CEA factory audits
Here are our key findings...
*Tier 1: definition is based on BMI (Benchmark Mineral Intelligence)
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Our Audit Process: CEA Assigns a Severity to Each Finding Depending On
the Risk Level of the Issue
A finding is an issue identified during inspection that indicates deviation from standard best practices, processes or product
specifications.
Finding Severity Definition
Findings that may result in severe safety risks and hazardous conditions. Critical findings are likely to cause damage to other
Critical
products or property, trigger non-compliance regulatory issues, and generally constitute a breach of mandatory regulations.
Major Findings that may reduce the battery’s functionality or impact safety in either short or long term.
Minor Findings which do not pose a clear risk of production failure, but rather fall outside the quality requirements.
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Distribution of Total Findings
With so much industry attention focused on cell selection, system integration should not be overlooked as a potential
source of problems. System-level defects accounted for nearly 50% of our QA findings.
The large number of system-level issues is mainly caused by
the following two contributors:
• The BESS integration process is highly manual and labor-
intensive, with less stringent quality control procedures. Cell, 30%
• Systems are very complex and are vulnerable to underlying
problems originating from defects in upstream components
that were not caught during earlier quality checks. System, 48%
Cell Module System
Module, 23%
Distribution of all BESS Findings
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System-Level
Breakdown of System-level Findings Severity Scale of System-Level Findings
The majority of system-level findings occurred in the Balance of System and Critical Major Minor
enclosure. Performance test findings usually indicate larger or more complex
Enclosure
problems.
BOP
Balance of System
58% of system-level 34% of system-level 8% of system-level findings Performance Test
findings are Balance of findings are enclosure are performance test related 0% 20% 40% 60% 80% 100%
System related related
Why/How Does It Happen Why/How Does It Happen Why/How Does It Happen Distribution of System-Level Findings
Component defects and Defects from enclosure A wide variety of manufacturing
improper system integration manufacturing process and defects and/or improper system
procedures. mishandling during integration. Performance test,
transportation. 8%
Example Example Example
• Liquid coolant leakage due to • Poor strength and rigidity: • Underachieving capacity and
deformed flange plates, lifting provision test, structural Round Trip Efficiency results
defective valves, loose pipe deformation, etc. from abnormally large
connections within the coolant temperature and voltage Enclosure, 34%
• Poor wiring and cabling
circulation system arrangement variations among battery cells Balance of System,
within a module, due to high 58%
• Malfunctioning temperature, • Grounding mechanism
smoke, gas sensors, audible impedance from poorly
defects welded wiring connections
and visual alarms due to
internal mis-wiring • Water ingress issue • Charging/discharging failure
• Live conductor exposed within • Appearance defects: painting due to wiring issues in battery
the AC/DC distribution specifications, markings, rack’s high voltage boxes
nameplate, openings, etc.
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System-Level
26% of BESS units that CEA inspected had defects in the Fire Suppression System, while 18% of
units had Thermal Management System defects.
Fire suppression and thermal management systems are critical for functional safety, and defects in these systems can lead to
increased risk of fire.
Frequency of system-level BESS defects over total inspected units
26%
23%
18%
16%
14%
12%
11% 11%
9%
6% 7%
4%
1% 0% 1%
Fire Suppression System
BMS
ESS lighting alarm
DC combiner panel
Rack frame
Thermal Management System
Grounding mechanism
Appearance
Door alarm
Capacity test
AC/DC power distribution
RTE test
Wiring and cabling arrangement
Strength and rigidity
Water ingress issue
Thermal Management
Fire Suppression
System
System
Balance of System Enclosure Performance test
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System-Level
Case Study – Common Fire Suppression System Findings
26% of inspected BESS units had fire suppression system defects
Non-responding release actuator for the fire Fire alarm abort button was not functional Non-responding smoke & temperature
extinguishing agent sensors
Why/How Does It Happen Why/How Does It Happen Why/How Does It Happen
A diode within the actuator was faulty. The fire alarm abort button was not responding to The smoke sensor was incorrectly wired, and a
the user commands due to incorrect wiring. temperature sensor was reversely connected to
power source.
Risk Risk Risk
A malfunctioning actuator will not respond to the The abort button allows user to deactivate an An incorrectly wired smoke sensor cannot detect the
command of releasing a fire extinguishing agent, improperly triggered fire alarm; failure to deactivate presence of smoke within the system. A reversely
potentially allowing the fire to further propagate. can lead to unwanted fire extinguishing agent or connected temperature sensor can have a false
sprinkler system activation which can cause serious reading. Malfunctioning of these sensors can pose a
damage to equipment. high fire and explosion risk.
Example Example Example
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System-Level
Case Study – Common Thermal Management System Findings
18% of inspected BESS units had thermal management system defects
Circulation System Components Failure Compressor mainboard short circuiting
Why/How Does It Happen Why/How Does It Happen
1. Flange plates are 2. Loose pipe connection: 3. Defective incoming Defective mainboard with a burned MOS (Metal Oxide Semiconductor) tube for
deformed from the fastener was not material: the valve compressor control.
overtightening due to a fastened from operator’s comes with a loose stem.
loosely defined screw mis-installation and not
mounting Standard following SOP.
Operating Procedure
(SOP).
Risk Risk
1. Internal short circuiting 2. Severe short-circuiting 3. Faster battery 1. Faster battery degradation from dysfunctional liquid cooling system.
and thermal runaway events and thermal degradation from 2. Initiating thermal runaway or explosion with sparking from burned components.
initiation from continuous runaway initiation from insufficient coolant flow
coolant leakage. potential massive coolant control and internal short
leakage. circuiting and thermal
runaway initiation from
continuous coolant
leakage.
Example Example
1 2 3
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Cell-level
30% of the Total Findings Occurred During Battery Cell Manufacturing
• Although battery cell factories have the highest level of Frequency of issues found in total audited cell workshops
automation, they make up a larger number of findings 33%
(compared to battery modules) due to their lengthy
production processes and higher precision requirements,
leading to more room for error. 25% 25%
• Audit findings on cells typically have a higher severity rating 21% 21% 21% 21%
as cells are the building blocks of the energy storage system,
17% 17%
and defects can be detrimental to system performance and
safety.
Cell Module System
Mixing
Calendering
Slitting
Cell insertion
Aging and formation
Winding/Stacking
Electrolyte filling
Welding
Coating
Electrode manufacturing Cell assembly Cell finishing
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Cell-level
Breakdown of Battery Cell Findings
Severity Scale of Cell-Level Findings
Findings are evenly distributed due to strict precision and safety requirements
Major Minor
throughout the entire cell manufacturing process.
Electrode Manufacturing
Cell Assembly
32% of cell findings occur 38% of cell findings occur 30% of cell findings occur Cell Finishing
during electrode during cell assembly during cell finishing 0% 20% 40% 60% 80% 100%
manufacturing
Why/How Does It Happen Why/How Does It Happen Why/How Does It Happen Distribution of Cell-Level Findings
Improper measurement system Improper process and quality Improper process and quality
analysis and process control control execution control execution
Example Example Example Cell Finishing
Electrode
• Mixing: out-of-calibration • Slitting: lack of burr size • Cell (jelly-roll/stack) insertion: Manufacturing 30%
32%
viscosity meter, lack of control, lack of monitoring on lack of laser welding
expiration control record over the cutter status and parameter verification, lack of
the mixed active material remaining life inline alignment and
• Coating: missing key coating • Stacking/winding: lack of inline clearance inspection after the
quality measurements such electrode alignment inspection aluminum cap is welded on
as surface density, coating • Welding: uncalibrated welding • Electrolyte filling: Loose
thickness, and moisture strength test that are control of environmental
content. conducted manually without conditions (temperature and
• Calendaring: deformed well-defined pass/fail criteria humidity), lack of sealing
electrode sheets due to roller quality inspection which can
misalignment lead to electrolyte leakage Cell Assembly
38%
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Module-level
23% of the Findings Occurred During Module Manufacturing, Largely Due
to More Manual Production Lines
Module manufacturing issues often occur because lines are less Frequency of issues found in total audited module
automated, which creates room for imprecision in material workshops
handling and inferior welding quality.
50%
31%
Cell Module System 19%
6%
Cell sorting and Interconnection welding
Interconnection Enclosing EOL Test
installation
welding
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Module-level
Breakdown of Module-Level Findings
The automation level of module production varies among manufacturers. Welding Severity Scale of Module-Level Findings
quality issues and environmental control pitfalls can lead to end-of-line (EOL) test
Major Minor
failures.
Cell sorting and installation
Enclosing
45% of module 41% of module 11% of module 3% of module findings Interconnection welding
findings occur at cell findings occur during findings occur during occur during EOL EOL Test
sorting and interconnection enclosing testing
0% 20% 40% 60% 80% 100%
installation welding
Why/How Does It Why/How Does It Why/How Does It Why/How Does It Distribution of Module-Level Findings
Happen Happen Happen Happen
Manufacturing Lack of efficient quality Lack of efficient quality Cell manufacturing
inconsistency due to control procedures and control procedures and inconsistency and mis- EOL Test
manual operation and mis-operation risks due mis-operation risks due wiring from highly Enclosing 3%
11%
improper quality control to a highly manual to a highly manual manual processes
protocols process process
Example Example Example Example Cell sorting and
installation
• Lack of error-proofing • Mislocated welding • Inconsistent cell • Failed dielectric 45%
measures to ensure position group placement withstand voltage test
cells are assembled • Non-calibrated • Mechanical damages due to poor internal
with the right welding strength test to fixtures and cooling wiring insulation and
orientation • Lack of procedure of plates. wiring arrangement Interconnection
• Inconsistent glue cleaning up welding • Abnormal cell voltage welding
41%
usage and position slags. difference due to
• Unqualified BOM (Bill defective cells.
of Materials) change
on insulation layers
within the module.
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What Can You Do To Ensure the Long-term Financial Health of Your BESS
Assets?
Golden FAT Factory QA
• Closing the Gaps: We review your procurement • Factory Audit (FA): Engineers check factories
contract, project requirements, and FAT checklist with a 300+ point checklist, assess risks, and
to ensure your energy system is safe and recommend fixes.
performs well, preventing any surprises.
• Inline Production Monitoring (IPM): Engineers
• Early Detection: We identify risks in the monitor production in real-time, ensure quality,
supplier’s checklists early to save costs and spot issues, and suggest corrections.
extend your system’s operational life.
• Pre-Shipment Inspection (PSI): Engineers
• Expert Check-Up: Our experts verify adherence inspect and test a random sample of finished
to key safety and performance standards for a products, record findings, and advise on
reliable energy system. improvements.
• Negotiation Support: We support you in • Factory Acceptance Test (FAT): Engineers
negotiating and adjusting the FAT checklist inspect and test finished products for
deviations. performance and suggest corrective actions.
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INSIGHTS
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