ALOM Receives SDCE’s Top Projects Award for Lithium-ion Battery Storage

ALOM Receives SDCE’s Top Projects Award for Lithium-ion Battery Storage

Fremont, CA, June 18, 2024 – ALOM, the global supply chain management company serving Fortune 500 companies and emerging leaders, has been recognized with Supply and Demand Chain Executive’s 2024 Top Projects Award. The groundbreaking work ALOM is being honored for ushers in a new era of lithium-ion (Li-ion) battery warehouse handling and storage fire safety standards. As part of its planned growth strategy, ALOM is opening a new 170,000 square-foot warehouse, production, and fulfillment facility in Sacramento, CA. Inside this facility ALOM is constructing a fully partitioned, fire-rated 12,200 sq. ft. battery storage area set to be in operation by August 2024.

“When ALOM made the decision to expand and open a new facility in Sacramento, we considered how we could incorporate the highest levels of safety, technology, and operational efficiency. Battery storage safety was a top priority. ALOM is proud to take a leadership role in implementing a comprehensive fire protection strategy that will detect and contain a fire initiating within lithium-ion batteries stored in our facility. These measures reduce the risks and impacts from a fire spreading to other inventory while ensuring the safety of our workforce,” said ALOM Chief Operating Officer Brandon Marugg.

“As an organization that is obsessed with safety, we realized that we had to take extraordinary measures. Our safety engineers soon realized that the roadmap of battery fire safety standards is actively evolving, which required a proactive approach to do the research, engage with experts, and to create the blueprint. It was a heavy lift but the right thing to do,” he added.

Led by mobility products and energy storage systems, products powered by rechargeable Li-ion batteries are increasing. Li-ion battery demand is expected to grow by about 27% annually to reach 4,700 GWh by 2030 according to McKinsey & Company. Keeping pace with demand growth, fire risk caused by overheating Li-ion batteries is also on the rise. This risk increases when high volumes of products containing Li-ion batteries are stored in close proximity.

Along with engaging with county and state fire safety experts and Li-ion product developers, ALOM collaborated closely with Fire Protection Engineer and Fire Marshal, Todd LaBerge, P.E. in researching current and expected future code requirements and developing the safety standards for the new battery storage area.

“I commend ALOM for their dedication and investment to establish a best-in-class facility for the safe handling and storage of lithium-ion batteries amidst the varying fire codes and standards across different states and regions. This is a highly technical and evolving area. ALOM stands out as one of the few 3PL providers fully committed to the adoption of advanced safety measures that meet the highest fire code standards as well as property protection measures. This dedication ensures the protection of both inventory and staff, setting a new benchmark for safety in the industry,” said LaBerge.

Fire safety measures ALOM has incorporated into the battery storage facility include:

• Fire-rated construction of walls and steel doors
• Periodic thermographic infrared heat scanning and smoke detection system
• Automatic in-rack front facing sprinkler system designed and installed in accordance with Highly Protected Risk (HPR) standards
• Horizontal steel barriers separating levels of product storage within pallet racking
• Separate smoke exhaust system
• Incoming inventory state of charge (SOC) level monitoring

“The need is here and now,” added Fiona Lowbridge, Chief Commercial Officer at ALOM. “Our customers are developing and introducing new products and energy storage solutions that increasingly incorporate more efficient and longer lasting lithium-ion batteries. The demand is only going to increase. I am proud of the way our team approached this challenge by putting science and safety first and cost a distant fourth or fifth consideration. We have long ensured that our customers are positioned at the forefront of supply chain service, risk protection and safety. This project and award recognition is an excellent example of ALOM putting its values into action.”

Due to ALOM’s expertise in battery procurement, storage and fulfillment, its buyers and freight logistics teams have close, collaborative relationships in place with many leading battery manufacturer OEMs, and freight carriers. This has enabled ALOM to specify and verify charge levels and loading configuration for all products when they leave the factory, are in transit, and arrive at the ALOM storage facility. At the same time, it enables ALOM safety and compliance staff to anticipate new regulatory storage and handling requirements, and plan accordingly.

The SDCE Top Projects Award profiles innovative case study-type projects designed to automate, optimize, streamline and improve the supply chain. “The past 12 months has seen companies within the supply chain and logistics space upgrade, enhance, adopt and adapt in order to achieve greater efficiency along the chain. Companies implemented others’ software and technology to work smarter, together. Their partnerships cultivated resilience and placed a spotlight on projects designed to make the supply chain space safer and more efficient,” says Marina Mayer, Editor-in-Chief of Supply & Demand Chain Executive and Food Logistics. “And, now it’s time to celebrate those projects!”