Electric vehicles : the challenge of batteries
As the world is steady moving into electric vehicles, the demand for batteries has skyrocketed in major automotive markets in the EU and the US. Electric automotive manufacturers face a difficult period of uncertainty in the battery supply chain, and many are turning to building their own battery gigafactories or forming joint ventures to address squeezed supply.
The expected growth of demand is attested to be around 30%, nearing 4,500 gigawatt-hours (GWh) a year globally by 2030, and the battery value chain is expected to increase by as much as ten times between 2020 and 2030 to reach annual revenue as high as $410 billion. Approximately 90 percent of the demand will come from mobility applications. Overall, the growth has catalyzed an unprecedented level of investment that battery manufacturers must get to stay competitive while other industries pursue the same scarce resources.
This speed of scaling new technology leads to notable challenges: shortages of labor and materials, delays in the construction of gigafactories to produce batteries at scale, and competition for resources in the supply chain, among others. In fact, the battery supply chain risks facing a situation similar to the current semiconductor chip shortage, where demand growth has outstripped capital investment in new supply. Furthermore, environmental, social, and governance factors will play a more significant role.
Even if the situation shows very stressful challenges, it also presents significant opportunities for growth across the value chain for those who choose to address the issues properly and accelerate their move into the EV battery market. These players are of three primary types: incumbent battery manufacturers, auto OEMs, and smaller new entrants using disruptive technologies.
Three are the suitable key measures for preventing or responding to EV battery shortages: industrialization and scale-up of gigafactories, strategies to find and retain talent and establishment of a robust and efficient supply chain.
MarketingPRO, thanks to its worldwide network and its deep knowledge of the Industry, is up-to-date and ready to support its customers’ decisions, through its distinctive qualitative surveys, comparative analysis, and Market & Competitor Profiling’s. If you are willing to “re-charge” your business, please do not hesitate to contact us.
Competitive intelligenceWilling to drive competitive patterns?
Our competitive intelligence services develop the appropriate analytic tools to take informed decisions.More
Strategic marketingWilling to exploit your market potential?
MarketingPRO supports successful companies to develop a comprehensive set of strategy and actions to improve sales and revenues.More
ConsultingWilling to realize your profit potential?
MarketingPRO offers consultancy for Cost Efficiency and Pricing Optimization: more revenues out of improved positioning.More