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📊🚗 Insights - EV Market Slowdown: A Reality Check for the Battery Industry 🔋🚗 As enthusiasm for battery electric vehicles (EVs) wanes, the battery industry faces challenges of oversupply and underutilization. Despite previous strong demand, fundamental issues like inadequate charging infrastructure and high acquisition costs remain unresolved. Recent reports indicate that key players, including Automotive Cells Company and Ford, are scaling back investments in battery projects. For instance, ACC has paused plans for two major plants in Europe, while Ford is revisiting its Michigan plant's capacity. This slowdown is not just a European phenomenon; North America is seeing similar trends, with Panasonic and Northvolt also delaying expansions. Additionally, the cooling demand has led to a significant drop in prices for critical battery raw materials like lithium, nickel, and cobalt, raising concerns about future profitability. As we navigate this evolving landscape, addressing these core challenges will be crucial for sustainable growth in the EV sector. 💬 What strategies do you think the industry should adopt to overcome these obstacles? #ElectricVehicles #BatteryIndustry #Sustainability #EVChallenges

#DisruptiveTech 🟢 Even as the electric vehicle (EV) market faces a cooling period due to consumer concerns about high prices and inadequate charging infrastructure, the long-term future of mobility clearly leans toward electrification. To solidify their positions in this burgeoning domain for the long term, automakers worldwide are pouring in billions of dollars to build EV battery-related infrastructure. Despite a dip in EV sales of late, the battery production momentum is not slowing down, reflecting the industry's anticipation of an inevitable electric future. Historically dominated by China, the global lithium-ion battery supply chain is shifting. To avoid a repeat of the pandemic-induced chip shortage crisis, automakers, in 2021, began pledging to build EVs and batteries domestically. This has led to numerous commitments to produce North American-made batteries by 2030. The U.S. government has been pivotal in this transition, with the Inflation Reduction Act enforcing stringent eligibility requirements to develop a domestic battery supply chain and reduce reliance on China. EVs with battery components made by foreign adversaries no longer qualify for a tax credit of up to $7,500, accelerating investments in U.S.-based battery production. This legislative push has further accelerated investments in U.S.-based battery production. Check out article for details of the most notable domestic battery production investments currently underway in the United States by major automakers like Tesla, General Motors, Ford Motor Company, Toyota Motor Corporation and Stellantis. #ev #electricvehicles #emobility #lithiumbattery #evcharging Campaign Catapult, Pravo Consulting

News in #Battery Factory Construction “Automakers and battery manufacturers have collectively invested and promised to invest around $112 billion in building domestic cell and module manufacturing. Together, these companies promise to deliver an annual capacity of close to 1,200 gigawatt-hours before 2030, if each factory reaches maximum capacity. That’s roughly enough batteries for 18 million EVs, based on previous Tesla predictions that say about 100 GWh capacity can power around 1.5 million EVs.” Read more : https://lnkd.in/ggPdYdt6

Continuing the exploration of the evolving vehicle market in the wake of new mileage standards, I would like to focus on everyone’s favorite topic since the pandemic: supply chains. When diversifying its lineup to hybrid and electric vehicles, a manufacturer must carefully consider where and how to source new materials. Traditionally, the main components of a car were made from steel, aluminum, plastic, rubber, and glass. Those materials still exist, but now there’s the addition of the harder-to-source materials for the batteries, such as lithium, manganese, and cobalt. The first choice of an auto manufacturer looking to expand into electric vehicles must make is from where to source their batteries. Next, does the manufacturer diversify its battery manufacturers across its vehicle portfolio? Considerations include the risk management aspect of having multiple suppliers while balancing the supply chain and manufacturing complexity of having different batteries for different models. As a consumer, do you care if the vehicle you’re buying has a battery manufactured by CATL, Sunwoda, Panasonic, or another company? #AutoIndustry #SupplyChain #SupplyChainManagement #StrategicSourcing #ElectricVehicles #BatteryTechnology #Sustainability #ConsumerInsights #FutureOfDriving #BatteryTech #ZeroEmissions #SmartManufacturing

The price of battery cells has dropped by half in a year, as the companies producing them battle with overcapacity and cut prices to retain market share. The factors driving a 51 per cent drop in the price of battery cells - as reported by BloombergNEF (BNEF) analysts - include a drop in the price of raw materials such as lithium, and lower than predicted demand from the global transition to electric cars, which is happening more slowly than the battery industry hoped. https://lnkd.in/gBkRv-G7

China’s Contemporary Amperex Technology Co., Limited (CATL), the world’s biggest electric vehicle battery manufacturer, has suffered its first fall in quarterly profits in almost two years amid slowing growth in demand for EVs and intensifying competition. In mixed results posted in a filing to the Shenzhen Stock Exchange on Friday, CATL also reported lower-than-expected full-year revenues, but an improved gross profit margin on its core battery business for 2023. The results from the Tesla supplier, which is based in China’s south-eastern province of Fujian, offer a warning about the impact of softening demand for EVs in the world’s largest auto market. Chinese sales of pure battery-powered vehicles and plug-in hybrids rose 36 per cent last year, down from a 96 per cent increase in 2022, according to data from the China Passenger Car Association. CATL’s revenues were Rmb401bn ($56bn) in 2023, up 22% year on year but missing analysts’ forecasts of Rmb411.1bn and much slower growth than the 152% in 2022. Fourth-quarter net income fell 1.2 per cent from a year earlier to Rmb13bn, CATL’s first quarterly profit decline since January-March 2022. CATL enjoyed a 37% share of the global EV battery market last year, 21% points ahead of its biggest competitor, Chinese rival BYD, according to South Korea’s SNE Research.

How to advance the Solid State Batteries industrialization? The development and commercialization of solid-state batteries involve collaboration among various stakeholders, including automakers, battery manufacturers, and materials suppliers. As the industry strives to overcome challenges and make solid-state batteries a reality, several potential suppliers are playing key roles in providing the necessary components and materials. Here are some of the prominent players in the solid-state battery supply chain: Material Suppliers: QuantumScape: Known for its solid-state battery technology, QuantumScape focuses on developing solid-state electrolytes. The company has gained attention for its partnership with Volkswagen and has received significant investments to advance its technology toward commercialization. Ilika: Ilika is a materials-focused company that specializes in solid-state battery electrolyte materials. They work on developing advanced materials to enhance the performance and safety of solid-state batteries. Samsung SDI: As a major player in the battery industry, Samsung SDI has been investing in solid-state battery research and development. The company has the capability to produce key materials needed for solid-state batteries, including solid electrolytes. Automakers and Battery Manufacturers: Toyota: A pioneer in solid-state battery research, Toyota has been actively working on developing solid-state battery technology for electric vehicles. They have showcased prototypes and are investing in large-scale production facilities. BMW: BMW is exploring solid-state battery technology and has partnered with solid-state battery startups to accelerate the development process. They aim to incorporate solid-state batteries into their electric vehicles in the coming years. Volkswagen: In collaboration with QuantumScape, Volkswagen aims to bring solid-state batteries to market. The company has made substantial investments in QuantumScape and is committed to integrating solid-state technology into its electric vehicle lineup. Battery Equipment and Manufacturing Technology Providers: Applied Materials: Companies like Applied Materials play a crucial role in providing equipment and technology for manufacturing solid-state batteries. Their expertise in precision materials engineering contributes to the production scale-up of solid-state battery components. Targray: Targray is a supplier of advanced materials for battery manufacturing. They offer materials crucial for solid-state battery production, such as electrode coatings and separators. Collaborative efforts between these suppliers and industry players are vital for advancing solid-state battery technology. While some focus on specific components like electrolytes and materials, others contribute to the overall manufacturing and integration processes. #solidstatebatteries

Chinese EV battery giants CATL and BYD are committing to significant price reductions for their products, signaling the start of a price war that might lead to more affordable electric vehicles (EVs). These cost reductions stem from both a competitive market and advancements in battery technology, such as the shift to new chemistries that exclude cobalt, a costly and ethically problematic material. The main driver of an EV's price is its battery, and traditionally, high-capacity batteries have kept EVs more expensive than fossil-fuel-powered cars. However, new battery types, like cobalt-free lithium iron phosphate (LFP) batteries, are cheaper to produce, have a longer lifespan, and are less prone to fire risks, although they offer lower capacity and voltage. The EV industry has faced challenges, including an oversupply relative to demand and high raw material costs. Despite these issues, companies like CATL are investing in lithium extraction facilities to secure their supply chains, and the growing supply of lithium is expected to meet and even exceed demand, potentially stabilizing prices. There's also significant diversity emerging in the types of batteries available. While China dominates the LFP battery market, Toyota is focusing on solid-state batteries, which promise higher energy density and longer ranges. Battery technology is rapidly evolving, with researchers exploring a multitude of chemistries to meet various energy needs, from ground vehicles to electric aircraft, which require batteries with high power density. CATL has announced a high-density battery for aircraft use that triples the energy density of typical EV batteries.

The main cost of an #electricvehicle (#EV) is its #battery. The high cost of energy-dense #batteries has meant #EVs have long been more expensive than their fossil fuel equivalents. But this could change faster than we thought. The world’s largest maker of #batteries for electric cars, China’s Contemporary Amperex Technology Co., Limited, claims it will slash the cost of its #batteries by up to 50 per cent this year, as a price war kicks off with the second largest maker in #China, BYD subsidiary FinDreams Technology Co., Ltd. #EnergyTransition #Innovation #urbanmobility #futuremobility #electricvehicles #automotive https://lnkd.in/gPsxTbCn