Top Supply Chain Projects: ALOM Increases Warehouse Storage Capacity for Products Containing Lithium-ion Batteries

ALOM is building a new 170,000-square-foot state-of-the-art battery storage facility to meet fire code, workplace safety, insurance, and regulatory compliance requirements.

Alom Sac Location Pge Slide Photo

Sectors: Medical/lifesciences, technology, utility/energy, highly regulated industries

Customer client
About the project: Warehouse facilities that store products containing batteries, specifically lithium-ion batteries, must be designed and have proper permits showing they meet an increasing number of regulatory requirements, most notably, charge monitoring, heat detection, fire suppression/containment, and labeling/signage. The challenge for ALOM is how to increase warehouse storage capacity for products containing lithium-ion batteries while meeting full fire code, workplace safety, insurance, and regulatory compliance requirements. Designing, implementing, monitoring and maintaining these required safety measures and control systems is a high-cost investment.

Solution: Beginning in Q3 2023, ALOM began the buildout of a new 170,000-square-foot storage, production and fulfillment center in Sacramento, Calif. This presented an ideal opportunity to design and implement a new construction (vs. retrofit existing warehouse space) state-of-the-art battery storage facility. Scheduled to open in September, and currently in the permitting phase, the battery storage area will provide 1,460 pallet storage locations and include 2-hour rated firewalls completely surrounding the storage area, 2-hour fire-rated roll up steel door(s), VESDA air sampling and early stage heat and smoke detection system, overhead and in-rack (front facing) sprinkler system, 12-guage sheet metal storage rack separation, temperature-controlled and monitored storage area. It is the goal for this storage facility to have adequate capacity for ALOM to add additional battery storage and fulfillment programs over the next 3-5 years, and to serve as a blueprint for increased battery-rated storage capacity at additional locations as required. 

Results: ALOM is forecasting that the revenue growth the company will gain as result of providing customers with safety-rated and available battery storage capacity at the Sacramento facility will increase 5 times in 24 months over the $1 million build-out investment. Automotive EV, residential and commercial EV charge station, E-bike, home power storage, and a growing list of products are coming onto the market that will increase the need and demand for “safety-rated” warehouse capacity suitable to handle and store high volumes of products containing battery technology. The business impact is expected $5 million in battery program business growth over 24 months following Q3-4 2024 launch.

CLICK HERE to learn more about the rest of the 2024 Top Supply Chain Project winners.