By Alex Stapleton, Chief Commercial Officer, Alexander Battery Technologies
In the battery sector, gigafactories have become the headline act, drawing the lion’s share of investment, media attention and policymaking. Their impact on the automotive industry is undeniable. But for many original equipment manufacturers (OEMs) outside that space, they don’t represent the solution. Sectors like medtech, robotics and niche Electric Vehicles (EVs) often need something different: flexibility, speed and engineering support that large-scale cell plants aren’t built to deliver.
At first glance, this may look like a matter of volume. But the real issue is adaptability. Gigafactories are designed around scale: fixed formats, long-term programmes and processes that reward consistency. That structure works well for automakers producing millions of vehicles. For OEMs building products in the tens of thousands, or even just a few hundreds, it can be a poor fit. What they need is a partner that can move quickly, accommodate changing requirements and support technically complex products through design, testing and certification.
These companies often operate in fast-changing environments. Requirements shift, regulatory hurdles emerge and product specifications evolve. Being locked into rigid production schedules or inflexible design parameters can stall progress, increase costs and limit innovation. And in many cases, the minimum volumes required to make a gigafactory engagement viable are far beyond what these OEMs can commit to.
That’s why more OEMs are turning to specialist battery pack manufacturers. These partners don’t just supply batteries; they co-develop solutions tailored to the exact product and its end-user application. From mechanical and electrical design to BMS integration, as well as support through regulatory compliance and the transition to final assembly, custom battery manufacturers provide a cohesive service that fits the needs of mid-volume production. The goal isn’t to replicate the gigafactory model at a smaller scale, it’s to offer an entirely different kind of value.
Vertically integrated pack manufacturers have a particular advantage here. With design, validation and assembly all managed under one roof, they can shorten lead times and reduce disconnect between development stages. They also offer the freedom to choose components based on performance, availability and cost rather than being tied to a fixed supply chain. That’s a major benefit in markets where speed and responsiveness matter.
Cell choice is a good example. A company producing power tools or medical devices may want to prioritise discharge rates or energy density while also managing cost. In a standardised setup, those trade-offs are harder to optimise. A flexible partner can source from multiple suppliers, test alternatives and adjust the design without restarting the entire process. That makes it possible to hit technical targets without overspending or overcommitting.
The UK battery industry, and others like it, has rightly prioritised investment in gigafactories. These large facilities signal industrial strength and are vital for regional supply chain resilience. But focusing too narrowly on cell production risks leaving a gap. Without the ecosystem that turns those cells into usable systems, the broader battery value chain remains incomplete.
Policy also needs to account for the companies that have been building battery packs in the UK and Europe for decades. These manufacturers already serve OEMs across multiple sectors, creating solutions that power critical devices, machinery and vehicles. Supporting their growth means recognising that the future of electrification isn’t confined to automotive and that innovation often starts with low to mid-volume applications that need close engineering support.
One of the most underserved areas is niche vehicle manufacturing. Smaller EV companies, for example, may require 500 to 1,500 large packs per year. That’s too small for a gigafactory and too complex for a prototyping firm. Yet these companies face the same regulatory demands, safety standards and integration challenges as any large automaker. What they need is a partner who can scale with them, offering serious engineering capability without the overhead of an automotive-tier programme.
As electrification spreads further into specialist markets, demand for custom battery solutions is only going to grow. Not every OEM wants, or needs, millions of cells a year. Many are looking for a way to bring new products to market quickly, reliably, and with a battery system that meets their precise requirements. That’s not a gap in the market; it’s a growing opportunity.
Gigafactories will continue to shape the industry’s direction. But they are only part of the picture. Custom battery manufacturers are enabling a different kind of progress – one built on responsiveness, collaboration and technical precision. And for many OEMs, that’s exactly what the future looks like.
For more information about how Alexander Battery Technologies supports OEMs with mid-volume battery development projects, visit www.alexandertechnlogies.com.
