Diversifying Electric Vehicle Suppliers
As the light-vehicle automotive industry shifts to electric vehicles, suppliers are creating value in several ways. They’re diversifying their EV battery supply chains to reduce dependency on foreign suppliers and mitigate environmental and human rights abuses.
They’re collaborating with EV manufacturers to build new battery modules, cells, and electrode active materials locally. This enables them to take advantage of the IRA’s production tax credit.
LG Energy Solutions
LG Energy Solutions (KRX: 373220) is a division of Korea’s LG Chem that manufactures lithium-ion batteries for electric vehicles, mobility, and IT devices. It is also a leading supplier of lithium iron phosphate cells for stationary power systems. The company has a global presence with eight battery plants in North America, Europe, and Asia.
The company has built strong partnerships with major automakers, and is investing billions of dollars in battery factories across the United chinese electric car manufacturers States. It is building a $6.3 billion plant with Hyundai in Savannah, Georgia. It is also partnering with Honda to build a plant in Fayette County, Ohio. It has also formed a joint venture with GM to open a plant in Queen Creek, Arizona.
In addition to its battery manufacturing, LG Energy Solution has invested in research and development. It is also committed to sustainable battery management, which includes sourcing raw materials in an environmentally and socially responsible way. It has established a dedicated entity to take responsibility for the development of end-of-life battery recycling and reuse.
The Holland, Michigan facility is on track to be a ‘mother factory’ for the region and will support other LG Energy Solution facilities in North America. It has also partnered with local universities to provide tuition reimbursement for employees pursuing job-related degrees and certifications. This ensures that Michigan’s workforce will be prepared for the new technology in the future.
SK On
SK On is the world’s leading electric vehicle battery developer, manufacturer, and solutions provider. Launched in October 2021 after splitting off a battery business from SK Innovation, South Korea’s largest energy company, SK On aims to become a global leader in the clean energy industry by leveraging its global production base and R&D capabilities. Its batteries are designed for safety and can charge faster and travel further on a single charge than traditional ones.
During InterBattery 2023, SK On showcased its lithium-ion batteries for EVs, a battery to load (V2L) solution, and a hydrogen fuel cell. The company is also working on other technologies related to the entire battery life cycle, including advanced materials and manufacturing processes. The company’s batteries are already a linchpin in the revolution towards electrification of transportation.
South Korean automaker Hyundai Motor Group (HMG) and SK On will jointly invest $4.5 billion in a new EV battery plant in Cartersville, Bartow County. The plant is expected to be operational in 2025. The investment will help support the Biden administration’s Investing in America agenda, which includes boosting domestic production of EV batteries.
SK On also signed an MOU with Lake Resources to secure a long-term supply of critical battery materials. The deal will allow the company to meet the IRA requirements of battery production from mineral extraction through processing and assembly.
BYD
As the world’s largest electric vehicle supplier, BYD is a huge player with major ambitions. It boasts the best-selling EV in China and has partnerships with European automakers. In addition to its own cars, it supplies the batteries for a wide range of vehicles, including hybrids and fully electric models. It also produces power batteries, electric motors and semiconductor chips.
BYD was founded in 1995 by entrepreneur Wang Chuanfu. It started as a maker of rechargeable lithium-ion batteries, but it was soon clear that cars would be the future. In 2008, the company merged with Qinchuan Auto (later renamed BYD Automobile) and began to make cars.
Its first passenger car, the F3 sedan, was a hit in China. The company’s success drew the attention of American investor Warren Buffett, who invested in the company. In 2022, the company began shipping cars to markets outside of China, and this year it is expected to export 500,000 vehicles.
In the United Kingdom, BYD has partnered with auto dealers to sell its cars. It has already begun to expand in the country, and it will soon have between 30 and 100 outlets. In addition to its own vehicles, BYD also offers a range of buses for commuters in London and other cities, as well as charging stations for electric cars.
Tesla
Tesla is one of the leading electric car makers on the market. Its vehicles are designed to not only provide sustainable transportation for individuals but also energy storage systems for homes and businesses. Its goal is to push the industry toward more sustainable products on a larger scale than just cars so that everyone can benefit from a greener lifestyle.
The company has a unique approach to business that prioritizes mutual respect among its staff members and emphasizes constant learning. This allows its team members to find new ways to electric car manufacturer create a better product that is more environmentally friendly and cost-efficient. This philosophy has resulted in an impressive array of innovative products and technological advancements.
As a relative newcomer to the automotive world, Tesla has had to rely on suppliers for most of its essential components. These include Samsung, which supplies microchips for self-driving capabilities, Qualcomm for over-the-air technology, Panasonic, which produces batteries and the Model X SUV, and Ganfeng Lithium, which provides the lithium needed to manufacture the battery cells.
As a relatively small player in the global automotive industry, Tesla has had to seek partnerships with other suppliers to meet demand for its vehicles. These companies are expected to see significant growth in the EV industry, meaning that investing in them could be an excellent choice.
