How does the Electric Car Battery Business Look Like?
The Electric Vehicle industry has seen many entrants onboard over the recent years. The companies are competing for the world’s growing and anticipated market share. The world is arguably in a positive trajectory towards mass EV car adoption. Among the renowned companies venturing into the EV space is GM that aims to be fully electric by 2035. Notable, the Electric Vehicles will continually need batteries. The batteries serve a critical component of the EV’s, influencing the cars’ reliability and pricing.
Tesla, a market leader in the EV space has been steadfast in mass production of electric car batteries often referred to as Lithium batteries. Conversely, China holds an upper hand in Lithium battery raw material provision. It also has a high battery production capacity. US imports most of its batteries from China. The US wishes to ramp up battery and cell production to help the nation keep up with the EV space competition.
Batteries are seeing organic demand and this will continue to grow over the coming years. Important to note is that batteries will need to have relatively longer durations for storage and a price that helps effectively price cars. Tesla has cut down its prices mostly because of cheaper batteries in China and subsidies.
Ample a battery swapping company looks forward to greater demand into the future. The company is already in partnership with different EV car makers to help with batter manufacturing and maintenance. This is a step towards standardization of the batteries produced. Cars under the Ample umbrella will be able to move into any of the company’s stations and have a battery swap if needed. The process will be fast allowing cars owners to save time as Ample serves more customers.
There are plans to massively adopt bio batteries but the technology has not yet been able to scale. There is a positive upside but the focus on battery production remains largely on Lithium.
One company that has been able to look through opportunities in EV batteries is Vinfast, the company has a battery subscription plan. The plan allows users to detach the battery from the car value. This is because batteries are the biggest fixed cost on Electric Vehicles. Vinfast fronts to the markets different batteries for each car model to help make the purchase more attractive to clients. This is further enhanced by allowing clients to purchase their cars alongside a battery subscription model.
Global markets are increasing funding into theelectric car battery space despite the outcome being binary. Well, is that not the interesting bit about investing such as venture capital? Believing in a product or service and supporting it towards fruition.
Proponents of the EV industry hold that there needs to be a standardized and unified mode of charging for all electric cars as it will allow for symmetry in growth for the different stakeholders. Also, it will be in the best interest of the larger EV industry and customers who will have the flexibility to charge anywhere any time as a result of the seamless compatibility. As China continues to be a leader in battery production, it has been criticized on its batteries’ quality? Who will help level the playing field in the Electric Car battery business? US is among the several countries that have taken up the challenge.
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