Beyond the Gigafactory: Why Custom Battery Solutions Matter for OEMs Outside Automotive
When it comes to battery manufacturing, gigafactories dominate headlines and policymaking but they don’t always reflect the needs of every OEM. In this Batteries News Q&A, we speak with Alex Stapleton, Chief Commercial Officer (CCO) Alexander Battery Technologies (ABT), about why smaller-scale, application-specific battery solutions are critical for sectors like medtech, robotics, and niche EV manufacturing. From flexibility in cell selection to faster turnaround times and hands-on engineering support, Stapleton explains how ABT’s vertically integrated model offers a viable – and often necessary – alternative to the gigafactory approach.
Q: Gigafactories dominate a lot of battery manufacturing headlines. Why do you think that narrative doesn’t always reflect the needs of every OEM?
Alex Stapleton: Gigafactories play a significant role in the wider battery ecosystem, especially in the automotive sector. They signal where investment is going and can help us understand the long-term direction of travel in regions like Europe and North America.
But for many OEMs outside that high-volume space in sectors like power tools, medtech or robotics, the gigafactory model isn’t always the right fit. These businesses still have ambitious battery needs but they often require more flexibility, customisation and faster turnaround times than a gigafactory can offer.
Q: So is it just about scale, or are there other limitations with the gigafactory model for certain customers?
Alex: Scale is part of it, but flexibility is the bigger issue. Gigafactories are designed for efficiency at volume. That often means locking into specific cell formats, production schedules and long-term programmes. It’s difficult to adjust course if cell availability, pricing or performance changes and those factors change all the time. In many cases, OEMs simply don’t have the volume or predictability needed to benefit from a gigafactory’s economies of scale.
For OEMs needing tens of thousands to a few hundred thousand packs a year, this level of rigidity can make it harder to respond to changing market or product requirements.
Q: Can you give an example of how those limitations affect an OEM in practice?
Take an early-stage eVTOL manufacturer. They might need 1000 battery packs a year – an impossibly low volume by gigafactory standards, but technically complex with strict requirement around safety, performance and integration.
That level of demand is too low for most gigafactories to consider. These companies need a partner who can help refine the design, adapt as requirements evolve, and support them through testing, certification, and early production. That level of responsiveness helps them maintain momentum and meet the demanding standards of an application like eVTOL.
Q: What’s the alternative for those companies?
Alex: More OEMs are working with custom battery pack manufacturers. These are partners who can co-develop, design and assemble application-specific packs that integrate seamlessly into their systems. It’s not just about getting a battery, it’s about getting the right battery, without having to invest in infrastructure or commit to volumes that don’t match their needs. This approach gives OEMs more control over specification, functionality and project timelines – as well as full support through regulatory and certification requirements.
Q: What does a manufacturer like ABT bring to the table that’s different?
Alex: For a lot of OEMs, it comes down to flexibility and control. We manage the full process in-house, from design and validation through to assembly. This helps reduce delays and avoids disconnect between stages.
We can select components based on performance, availability and price without being tied to a single supplier, cell format or cell chemistry. That allows us to optimise total cost of ownership in ways that aren’t always possible in a standardised, high-volume setup.
Q: How should we think about the role of gigafactories versus other types of battery manufacturing?
Alex: It’s not an either-or situation. Gigafactories are important, especially for driving scale and investment in cell production. But they’re only one part of the picture.
There’s a large and growing space in the market for flexible, application-specific pack design – the kind that supports innovation and speed to market for OEMs outside of automotive. That’s where smaller, specialised manufacturers fit in. We’re not competing with gigafactories. We’re solving different problems for a different set of requirements.
Q: Do you think UK policy has focused too heavily on gigafactories?
Alex: I understand why the focus is there – big factories bring big investment and they’re a strong signal of industrial capability. That’s important.
But it’s also worth recognising the companies that have been developing battery packs in the UK for years.
If we support the demand side, that’s the OEMs that drive innovation, the supply side becomes more viable too. The two have to go hand in hand. There’s a risk of solely focusing on cell production without fully enabling the ecosystem that turns those cells into usable systems.
Q: Finally, is there a part of the market that’s especially underserved at the moment?
Alex: We see that in niche vehicle manufacturing – early-stage EV companies, for example, that need large battery packs in relatively small quantities. Think 500 to 1500 units a year. That volume is too small for most gigafactories and too large for a prototyping house. These companies still need serious engineering support, but without the overhead or scale forecasts that come with automotive programmes.
It’s an area where ABT’s model fits well – taking a pack from concept through to production at the right scale, with the right level of engineering input and responsiveness.
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Beyond the Gigafactory: Why Custom Battery Solutions Matter for OEMs Outside Automotive
