Who is in charge of electric vehicle battery? LG, Panasonic or Tesla?

category:Finance
 Who is in charge of electric vehicle battery? LG, Panasonic or Tesla?


What is certain is that no matter who dominates the market, the pattern of the future electric vehicle battery market is forming.

Tesla, GM, Volkswagen: develop their own battery technology and capacity

At present, for many car manufacturers, electric vehicle battery supply is still dominated by electronic and chemical companies. However, as global regulators vigorously promote the transformation of electric vehicles, car manufacturers are worried that factories producing high-quality batteries may have limited capacity in the face of huge demand.

California, one of the most important economic hubs of the United States and the largest automobile market in the United States, recently announced that it will completely ban new fuel vehicles from entering the market in 2035, and other states may announce similar goals one after another. This means that the electrification of vehicles will be greatly accelerated, and the demand for batteries will surge in the next few years.

In the face of this situation, some manufacturers began to gradually reduce their dependence on battery suppliers, and gradually developed their own production technology and capacity through joint venture factories and independent research and development.

Take Tesla as an example. At present, the main external battery suppliers of Tesla include Panasonic, LG Chemical and Ningde times. Among them, Panasonic is a long-term battery partner of Tesla. The Nevada super factory operated by both sides is the largest lithium-ion battery factory in the world.

Tesla CEO musk also said last month that while continuing to buy batteries from Panasonic and other suppliers, it was also developing its own battery production technology to ensure that it could meet its demand for car production capacity and further improve its independent production capacity.

Previously, the company announced that it would invest nearly $3 million a year to build a 300 million square foot battery plant in Ohio, which will also meet its target of supplying several hundred million U.S. automobile batteries.

In Europe, VW has taken a similar approach, investing about $1 billion in Swedish battery start-up northvoltab, part of which is used to build a battery manufacturing plant in Salzgitter, Germany.

Ken Morris, vice president of GMs electric vehicle business, said the risk of relying on suppliers to make their own batteries and introducing manufacturing into the company would give the company more control over the purchase of raw materials and battery chemistry.

You have to be able to control your own destiny.

Unlike the car makers mentioned above, other car companies such as Ford and Daimler are not themselves involved in the production of batteries. Executives said the company would prefer to sign up with a dedicated battery supplier to lock in the battery supply.

But Hau Thai Tang, an executive at Ford, told analysts that the company believes the traditional model of contracting parts with independent suppliers is more suitable for its battery needs.

Even in the joint venture, he can not guarantee the timely supply of batteries. Once a breakthrough is made in technology, there will be a risk.

Hau Thai Tang, on the other hand, believes that when dealing with multiple suppliers, suppliers will face competitive pressure and lower prices. At the same time, Ford can leave the capital intensive tasks of R & D and capacity building to battery suppliers, which can effectively reduce costs. Daimler has tried to participate in the production of its own lithium-ion battery through a subsidiary before 2015. But olakallenius, Daimlers CEO, said the money would be better spent elsewhere. Wed rather invest that money in what we do best - cars. As a result, Daimler signed long-term supply agreements with Ningde times and Funeng Technology (Ganzhou), which it invested in last year. The company said it would sign a supply agreement for about $23.6 billion, but would continue battery research within the company. Source: Wall Street news editor in charge: Zhong Qiming_ NF5619

Daimler has tried to participate in the production of its own lithium-ion battery through a subsidiary before 2015. But olakallenius, Daimlers CEO, said the money would be better spent elsewhere.

Wed rather invest that money in what we do best - cars.

The company said it would sign a supply agreement for about $23.6 billion, but would continue battery research within the company.