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Why this century-old battery tech is gaining renewed attention now
Thomas Edison was among the first to patent nickel-zinc technology in 1901. It’s now emerging as a non-flammable battery solution for data centres
Gold Peak Technology Group is investing in nickel-zinc batteries, offering data centres a non-flammable alternative to lithium-ion ones.
PHOTO: GOLD PEAK TECHNOLOGY GROUP
Kevin Lim, Brand Newsroom
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It took firefighters two days to completely extinguish the blaze at a data centre in Loyang in September 2024. The fire destroyed two battery rooms, two power supply rooms and an equipment storage area in the four-storey building. Twenty workers were evacuated safely.
The financial cost was not disclosed.
The fire was linked to lithium-ion batteries kept in the battery room
Global real estate services company JLL noted in a 2024 analysis that fire safety measures in data centres were coming under increasing scrutiny.
Lithium batteries can cause fires in industrial facilities like data centres due to thermal runaway, said a February 2024 analysis by consultancy firm HKA. Thermal runway refers to a self-heating chain reaction triggered by overcharging, damage or heat.
This is why airlines allow laptops in cabins, but not in checked luggage, to ensure any fire risk is visible and manageable.
As industries seek cleaner, safer energy storage solutions, a century-old technology is gaining renewed attention: Nickel-zinc batteries.
These batteries are non-flammable and easier to recycle and dispose of than lithium ones, says Mr Daniel Chua, senior vice-president of GP Energy Tech International.
It is an opportunity that its parent company, Hong Kong-based Gold Peak Technology Group, plans to seize. The batteries and audio components maker, which is best known for its GP brand of batteries, reported an annual revenue of HK$6.85 billion (S$1.13 billion) in the financial year ending 31 March 2025.
In February, Gold Peak announced that it would build a nickel-zinc battery manufacturing and research and development facility in the Johor-Singapore Special Economic Zone (JS-SEZ).
The project was the first to be announced under UOB’s Green Lane, an initiative launched that same month by UOB and Invest Johor, the Malaysian state’s investment agency.
Gold Peak intends to invest RM670 million in the project, which, when ready, will employ about 180 people.
What are nickel-zinc batteries?
Unlike lithium-ion batteries, which use flammable organic solvents as electrolytes, nickel-zinc batteries use water-based electrolytes that pose no fire risk.
Electrolytes are the solutions inside batteries that allow electrical current to flow between the positive and negative ends, also known as electrodes.
The two main components, nickel and zinc, are also abundant and non-toxic, making them easier to recycle and dispose of compared to lithium. “Using a water-based process, (we can) efficiently separate the metallic matter and electrode waste through physical separation and filtration,” says Mr Daniel Chua, senior vice-president of GP Energy Tech International.
It’s not a new technology though, with light bulb inventor Thomas Edison among the first to patent nickel-zinc technology in 1901. But early versions were plagued by short lifespans.
This problem was resolved in recent years through advances in nanotechnology and the development of improved separators that block dendrite growth. Dendrites are tiny metal spikes that can grow inside a battery and cause short circuits.
An eye on data centres
Gold Peak is now discussing with Malaysian developers and government agencies about possible sites and financing arrangements for the upcoming facility, says Mr Chua of GP Energy Tech International, the subsidiary that will be developing the new battery.
The planned Malaysian facility will initially target the rapidly growing regional data centre market, driven by surging demand for artificial intelligence and cloud services from businesses across the world.
In such environments, nickel-zinc batteries can serve as a critical first line of defence during power outages, he says, allowing time for operators to activate their standby generators.
Nickel-zinc batteries are capable of rapidly storing and discharging large amounts of energy, adds Mr Chua, making them ideal for data centres, hospitals, and other facilities where continuous, reliable power is essential.
GP Energy Tech estimates the battery demand from data centres to be currently worth around US$5 billion, with the potential to double to US$10 billion in five years and US$20 billion in the next decade.
GP Energy Tech estimates the battery demand from data centres to be currently worth around US$5 billion, with the potential to double to US$10 billion in five years and US$20 billion in the next decade.
PHOTO: GOLD PEAK TECHNOLOGY GROUP
Mr Chua adds that GP Energy Tech has already embarked on its first pilot project, which involves a subsea fiber optic landing station.
The nickel-zinc batteries will be supplied by the group’s small-scale manufacturing facility in Dongguan, China. Gold Peak is now building a full-fledged manufacturing plant in the southern Chinese city.
Helping companies expand abroad
UOB’s Green Lane with Invest Johor was launched in February 2025, with Gold Peak’s project being the first to be announced. The initiative was set up by UOB and Invest Johor, the Malaysian state’s investment agency, to fast-track investments into the Johor-Singapore Special Economic Zone (JS-SEZ).
Under this programme, UOB conducts pre-qualification assessments for customers applying for approvals within the special economic zone, helping to accelerate the process and ensure alignment with Invest Johor’s criteria.
UOB provides quick account opening for Singapore customers expanding into the JS-SEZ, and it has dedicated JS-SEZ desks in Johor and Singapore to support businesses at both ends.
Mr Jimmy Koh, UOB’s head of Network Partnerships and Strategic Marketing, Foreign Direct Investment (FDI) Advisory, says the bank has strategic partnerships with government promotion agencies in key Asean countries such as Malaysia, Indonesia, Vietnam and Thailand.
“Through our 11 UOB FDI Centres located throughout the region, we leverage our extensive network and deep local insights to help businesses lower the barriers to cross-border expansion,” he says.
Mr Daniel Chua, senior vice-president of GP Energy Tech International, says Gold Peak Technology Group has been banking with UOB for more than 10 years.
“(The bank’s) FDI Advisory has provided us with timely and efficient service for our expansion plan into Johor-Singapore Special Economic Zone,” says Mr Chua.
UOB is one of the largest foreign banks operating in Malaysia with 55 branches and assets of more than RM158 billion.
Safer alternative
Looking ahead, Mr Chua says data centre operators are facing calls from investors, regulators and insurers to address the risk of fires stemming from the use of lithium-ion and other older battery technologies, creating an opportunity for nickel-zinc.
GP Energy Tech is also focusing on the replacement market, he adds, as older data centres need to replace some lithium-ion battery systems after about seven years, and lead-acid batteries in their backup systems every three to four years. In contrast, GP Energy Tech’s nickel-zinc battery solutions can last up to 10 years.
Asked about other applications, Mr Chua says nickel-zinc batteries are currently not suited for applications such as battery energy storage systems in solar and wind farms. These need batteries that can store and release energy for extended periods when there is no sunlight or if the wind is weak.
But, he notes, “nickel-zinc batteries are only at the beginning of the development cycle”.
“When lithium-ion batteries started, they weren’t able to perform that well, but technology can sometimes advance quickly and very widely.”
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