Modular Batteries: Powering the Future of Flexible Energy Storage

Modular battery systems are becoming increasingly important in the world of e-mobility because of their unique advantages that work well with the latest advancements in cell-to-pack (C-t-P) technologies. Modular battery systems possess vital qualities like flexibility, scalability, and easier maintenance at the table. Its adaptability makes it useful for lower-volume productions or specialised electric vehicle markets, such as off-road vehicles, industrial machinery or marine applications, writes Saurabh Sharma, Manager, Ingenious e-Brain Solutions Pvt. Ltd.

The transition to electric mobility and sustainable energy systems has placed increasing pressure on battery technology to deliver not only power and range but also adaptability, efficiency, and lifecycle sustainability. One solution gaining significant traction is the modular battery—a system architecture based on standardised, repeatable units or “modules” that can be combined to form a complete battery pack. Offering unparalleled flexibility, modular batteries provide a building-block approach to battery system design, making them ideal for a wide array of applications, from compact electric cars to heavy-duty trucks, industrial machinery, marine vessels, and off-grid energy storage. These systems combine scalability with streamlined manufacturing and maintenance processes, making them vital in the push toward electrification.

Rising Need for Modular Batteries

The global modular battery market size was valued at approximately $4.8 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of around 20% from 2023 to 2030, according to data from government sources like the U.S. Energy Information Administration. This growth is driven by the increasing demand for efficient energy solutions and the push for decarbonization across diverse industries. Key trends that are fueling the rising demand for modular battery systems are:

  • Diverse Application Requirements: As electrification expands beyond passenger EVs into commercial fleets, industrial equipment, and off-highway vehicles, a one-size-fits-all battery pack is no longer viable. Modular architectures allow manufacturers to tailor battery configurations to specific use cases quickly and cost-effectively.
  • Scalability and Production Flexibility: OEMs and battery suppliers benefit from modularity by standardising production lines and reducing tooling costs. The ability to reuse validated modules across vehicle platforms accelerates time-to-market and lowers costs.
  • Sustainability and Second-Life Applications: Modular batteries support easier end-of-life management. Individual modules can be reused, repurposed, or recycled, aligning with circular economy principles and reducing environmental impact.
  • Increasing Regulations and Safety Standards: Tightening global safety and emissions regulations demand safer, more adaptable battery systems. Modular batteries help meet these requirements by incorporating advanced safety mechanisms at both module and pack levels.

Modular Battery Design and Implementation Barriers

Despite their several advantages, modular battery systems face various design and implementation challenges. Higher costs and system complexity, balancing energy density and thermal management, while also maintaining safety and performance, are some of the key barriers. Addressing the barriers mentioned below is the need of the hour to position the modular battery system in the industry effectively:

  • Thermal Management Complexity

Each module must manage its thermal load while integrating into a broader pack system. Achieving consistent cooling—especially with large-format prismatic or pouch cells—requires innovative materials and layouts.

  • Weight and Volume Trade-offs

The inclusion of multiple housing units, connectors, and cooling subsystems may increase overall pack weight and reduce energy density compared to non-modular (monolithic) solutions.

  • Interconnectivity and Control

Complex wiring, communication, and safety protocols are needed to monitor and control individual modules, increasing system complexity. A robust BMS (Battery Management System) must coordinate and adapt across modules seamlessly.

  • Standardisation vs. Customisation

Finding the balance between a standardised platform and application-specific customisation can be difficult, particularly for niche markets with unique demands.

Why Modular Battery Systems

Modular battery systems are becoming increasingly important in the world of e-mobility because of their unique advantages that work well with the latest advancements in cell-to-pack (C-t-P) technologies. Modular battery systems possess vital qualities like flexibility, scalability, and easier maintenance at the table. Its adaptability makes it useful for lower-volume productions or specialised electric vehicle markets, such as off-road vehicles, industrial machinery or marine applications. The below-mentioned benefits make it ideal for the evolving industry of e-mobility:

Flexibility and Scalability

Modular systems can be expanded or rearranged to meet varying voltage, capacity, and performance needs, enabling quick adaptation to new vehicle platforms or energy requirements.

Enhanced Serviceability

Faulty modules can be easily identified and replaced without dismantling the entire pack—minimising downtime and reducing long-term maintenance costs.

Accelerated Certification and Development

Pre-certified modules can be reused in different pack designs, expediting validation and compliance with industry regulations.

Better Lifecycle Economics

Modular designs allow for easier refurbishment, reuse in second-life applications (e.g., stationary storage), and more efficient recycling of components.

Cross-Compatibility with Evolving Chemistries

The modular approach facilitates future adoption of new chemistries, such as solid-state or sodium-ion, with minimal redesign.

What Market Players Are Doing

Market players are leveraging the potential of modular battery systems to further strengthen their position and innovation. The competitive landscape reveals active innovation and differentiated strategies:

  • LG Energy Solution and GM: Expanding their 14-year partnership to develop prismatic cell-based modular battery systems tailored for next-gen EV platforms.
  • BYD Blade Battery: A modular LFP prismatic cell with structural and thermal advantages, increasingly integrated into their platform vehicles.
  • Kreisel Electric: Pioneering immersion-cooled modular batteries for high-demand applications like motorsports and marine, delivering both safety and performance.
  • Ample: A California startup offering modular battery-swapping stations, standardising battery modules for fast EV refuelling in under 5 minutes.
  • Forsee Power: Designing modular packs with built-in BMS across transit, rail, and industrial applications; emphasises multi-chemistry flexibility.
  • American Battery Solutions (ProLiance Series): Offers high-voltage, modular Li-ion packs for commercial and industrial vehicles, optimised for ease of integration and servicing.

The future of battery technology is set to revolutionise the energy landscape with smarter, integrated BMS architectures. Next-generation modular batteries will feature distributed or decentralised BMS systems, where each module has independent monitoring and communication abilities, improving redundancy and safety. The integration of AI and machine learning into BMS algorithms heralds an era of AI-enhanced predictive management, enabling predictive analytics that optimise charge and discharge cycles while proactively mitigating failure risks. In high-demand applications, advanced thermal management technologies like direct immersion cooling, phase-change materials, and embedded heat sinks within module casings are emerging to maintain thermal balance.

Moreover, future modular systems will support plug-and-play upgradability, allowing for selective upgrades of subcomponents such as cooling plates and control electronics without necessitating the replacement of entire packs. This not only extends service life but also enhances sustainability. As the industry embraces larger, low-cost cells, particularly the rise of prismatic LFP and blade cells, modular batteries will increasingly adapt to accommodate new cell formats while maintaining structural flexibility and safety. To further streamline the industry, efforts are being made to standardise module dimensions, connectors, and cooling interfaces across OEMs, facilitating interoperability and reducing supply chain complexity. This convergence of innovation and collaboration positions the battery industry on the brink of significant transformation.

As the automotive and energy industries continue to innovate, modularity will remain a central design philosophy, enabling rapid adaptation, long-term serviceability, and seamless integration of emerging technologies. By navigating the challenges and leveraging its advantages, modular battery technology is poised to become a cornerstone of the future of clean energy.