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The future of electric vehicles

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The future of electric vehicles

Classification:
Battery industry
Author:
2017-07-26

The future of electric vehicles

Due to concerns about energy security, easing the pressure of climate change and the surge in energy demand, electric vehicles have become a viable mode of transportation again. Battery components play an important role in determining the cost, range and safety of these vehicles. The development of lithium-ion battery technology has created potential for electric vehicles to compete with gasoline vehicles for the first time. However, there are still many challenges, the most important of which is cost.

This article has two purposes.

The first is to explain the development of the lithium-ion battery industry so far. Lithium-ion battery technology was first developed in the United States and Europe. In the early 1990s, it was first adopted and commercialized by Japanese companies, mainly for electronic products. In the early 2000s, manufacturing capabilities expanded to China and South Korea. By the end of the first decade of this century, Southeast Asia had become the dominant lithium-ion battery production, accounting for 98% of the world's output. Although the United States is investing heavily today to build domestic lithium-ion battery production capacity, Asian battery manufacturers are developing rapidly to occupy the electric vehicle battery market.

The second purpose of this article
It is to explain the current status of the supply chain relationship between car manufacturers and battery manufacturers, and to understand how these relationships affect the competitiveness of car manufacturers.

 

Today, three types of relationships coexist: vertical integration, partnership and outsourcing. Some automakers develop their own battery packs in vertically integrated organizations, and some automakers have established partnerships with battery suppliers and completely outsource the development and manufacturing of battery packs to external suppliers. Some car manufacturers have. Each model has its own advantages and disadvantages, and each car manufacturer has different limitations and goals,

so there does not seem to be a single best model for the entire industry. In the near future, understanding of battery characteristics will be the key to battery pack development. Battery standardization is unlikely, but as the technology matures, battery companies will focus more on software and battery integration to build competitiveness.

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