IONCOR's journey to billion-euro success
From gross sales of 10 million euros to over one billion euros in under five years – how is this even possible? Yet that is exactly what IONCOR has achieved, transforming from a relatively small player into a major force in battery manufacturing and electrification.
Starting from modest beginnings, IONCOR has rapidly grown into a formidable player in the battery industry. In just five years, the company has expanded from a few dozen employees to over 1,300 strong, and its gross sales have multiplied by a hundred.
This impressive trajectory highlights IONCOR's ability to innovate and adapt in a competitive industry.
Entering through the back door
Officially, IONCOR was founded in September 2024, but the company has roots going deep into the automotive business in Finland. As formerly a part of Valmet Automotive, it can claim to have over 50 years of experience in contract manufacturing, and it has manufactured batteries since 2018.
“We started with manufacturing, entering through the back door. A major automotive client needed large quantities of batteries, so we actually installed production lines in six months, possibly in record time,” says IONCOR’s CEO Roberts Abele.
Only after building up its production capacity to a high level, IONCOR expanded its own development, testing, and simulation and focuses on the company’s own products. This approach proved to be productive, as many competitors are having challenges with ramping up their production.
“Now, we have over two million batteries produced, and all this time, we have had no major quality issues. In the battery sector, this is uncommon, so it surprises a lot of our customers. This is also something we are very proud of.”
Expansion beyond automotive industry
The electrification of cars has been going on for over 20 years now, and despite the recent headwinds, there is no end in sight. Electric cars are here to stay, and other vehicle segments are gaining momentum.
This is why IONCOR is diversifying from car batteries and beginning to target the bus, truck, and off-highway markets, i.e. vehicles such as tractors, forest harvesters, combine harvesters, and bulldozers.
“Our automotive business is fairly solid, and I see solid growth in the other sectors. I do not see a change in the push for clean energy, particularly in Europe, so the market will keep expanding.”
Since off-highway clients are generally smaller than high-volume automotive clients, IONCOR is also adapting its product range to better meet their needs. In addition to its contract manufacturing and systems supplier business, the company is developing its own products – a Modular Battery Platform.
“Few companies have the capability to develop their own battery systems. It takes time and money, and it requires expertise. When volumes are relatively low, like for agricultural machines, modular off-the-shelf products that can be used to build bigger systems are attractive,” says Jari Mattila, Director of Battery Mechanics, EV Product Development, at IONCOR.
Hitting the nail on the head
From the very first steps on the electrification path, IONCOR has been supported by Business Finland.
The development of IONCOR’s battery business started in 2009, when a group of companies and educational institutions researched electric car technology and charted the domestic supplier base with Business Finland’s support. This cooperation turned into a fully electric concept car called EVA, which was presented at the Geneva Motor Show in spring 2010.
After that, there have been several Business Finland supported products to develop battery technology and expand the network of the Finnish battery cluster. The projects also studied digitalization, new materials, and the possibilities of simulation, which today plays a major role in product development and testing.
These projects enabled IONCOR to determine where it should focus on in its R&D and what kind of intellectual property rights would serve it best, i.e. its battery management system.
“Even now, we have a few projects ongoing. Business Finland has been a major enabler for us, and its support has really hit the nail on the head”, Mattila praises.
"IONCOR is a long-term customer that has played a major role in the development and networking of the battery industry. Sustainable development plays an important role in Business Finland's strategy. The electrification of mobility and the development of batteries is an important part of the research and development activities we fund as well as the fight against climate change. The client has boldly renewed its business," says Johanna Laakkonen, Account Manager.
Diverse but together
Assistance in building networks and finding new contacts has been particularly pertinent to IONCOR, as one of its core values is ‘together.’
“Business Finland is very proactive in bringing companies together in the whole value chain from minerals to recycling. I have not seen this in Germany or in France – such a tight-knit business community where everybody is leveraging and helping each other,” says Abele.
Doing things together within IONCOR is also key, and Abele considers the company’s international team a major asset. In 1,300 employees, over 60 nationalities are represented. The management team also has many nationalities as well as almost 200 years of experience from different industries.
Having a diverse team facilitates interacting with international companies. For instance, when the ambassador from India comes to visit, Indian employees can assist in the arrangements.
“Diversity can bring some challenges, but we have used it to our strength to build a solid foundation in the culture of the company. In tough times, you always have to come back to it, so you need to get it right.”
Staying still not an option
Tough times are upon the automotive industry right now, so employees pulling together is extremely important.
“In this current operating environment, there are many challenges. We have overcome these and many other issues, and we have had tremendous growth and success over the last five years. It is in the DNA of this company that we never give up”, Abele stresses.
All in all, success is a matter of mastering transformation. It means overcoming challenges, changing products, expanding to new clients, and integrating the different cultures into a coherent culture.
“It is a question of transformation in the operating environment and your own operations, and also for each individual. Each one of us has to transform as the world is changing. You cannot stay still.
Business Finland funding services
Read more about the Hydrogen & Batteries – Dual Helix of Decarbonization Program