EV Suppliers Face Challenges As Industry Shifts to Electric Vehicles
EV suppliers face several challenges as the industry shifts to electric powertrains. Several key issues include ensuring fail-safe batteries and finding ways to reduce battery costs.
In addition, the sourcing of raw materials is becoming more complex as consumers and automakers apply pressure to upstream actors to improve mining practices. Legislation may help, but it will require buy-in from all stakeholders.
LG Energy Solutions
LG Energy Solutions, formerly known as LG Chem Michigan, manufactures large lithium-ion polymer battery cells and packs for electric vehicles. It has been a part of Michigan’s EV manufacturing landscape since 2010 and employs 1,495 people at its Holland facility. Its presence has increased as the need for electric vehicle batteries grows. The company has announced a major investment that will allow it to expand its production and testing capacity. The additional facilities will be used to store and test the raw materials needed for battery production.
LG is investing billions of dollars in eight battery plants across the United States and Canada to meet demand from automakers planning to launch their own EV lines. These investments are the largest in North America outside of joint ventures. LG’s Holland facility is one of these eight. It is preparing to supply Toyota with battery modules made of high-nickel NCMA pouch-type cells. The modules will be shipped to Toyota Motor Manufacturing Kentucky, which aims to produce 3.5 million BEVs per year by 2030.
LG Energy Solutions, a split-off from the electronics giant LG Chem, is a global leader in lithium-ion battery technology with over 25,000 patents. Its products include automotive, mobility and IT batteries, as well as energy storage systems. The company has a strong focus on sustainability and is the world’s top cobalt producer. It is exploring ways to reduce the dependency on this key raw material and is developing next-generation batteries that contain less cobalt.
SK On
SK Innovation, the world’s fifth-largest EV battery manufacturer, is expanding its production capacity to meet global demand. Its latest technology improves the performance of solid-state batteries by allowing them to charge faster and hold more power. Developed in partnership with Dankook University, the new material has 70% higher lithium-ion conductivity than conventional materials. This will make it easier to recharge EVs.
Earlier this year, SK On was recognized as one of electric vehicle supplier Fortune’s “Change the World” companies. The company is credited with helping to make electric vehicles more affordable and practical. It has two EV battery plants in Jackson County, Georgia, and is currently working on a $5.6 billion project near Stanton, Tennessee. Its US subsidiary, SK Battery America, is already producing EV batteries at a plant in Commerce, Georgia.
Hyundai Motor Group selected SK On to supply the batteries for its EVs in North America. This will reduce the automaker’s dependence on Chinese suppliers to comply with a new US climate tax law that requires EV makers to source key lithium-ion battery components from within the country.
The companies have signed a memorandum of understanding to establish a joint venture in Bartow County, Georgia. The plant will produce EV batteries for Hyundai and Kia models. The companies are also planning a second facility in Bryan County, which will be used by the Hyundai Metaplant.
BYD
BYD, which stands for Build Your Dreams, started out making rechargeable batteries for cell phones in the early ’90s and then pivoted to making electric vehicles in 2003. Since then, the Chinese company has become a global leader in NEVs, manufacturing not just its own electric cars but also battery systems for rivals and manufacturers of other vehicles, including buses, trucks, and forklifts.
The Shenzhen-based firm has already made a big impact abroad. Its EVs have been sold in Europe for a decade, and its flagship model, the Han, which is named after one of China’s ancient dynasties, has a luxurious appearance. The Han also boasts impressive range and performance compared to other EVs on the market, although it may be hard to sell the car in the US if the government continues to shrink its subsidies for NEVs.
Stella Li, the executive in charge of BYD’s international operations, has a strong track record working with foreign markets. But she acknowledges that it will be very difficult to convince US buyers to choose a BYD car over tried-and-true Toyota or hot local startup Tesla. She believes that President Biden’s Inflation Reduction Act will slow EV adoption in the US by making affordable NEVs unobtainable for many consumers. In the meantime, she is focusing on building sales in Europe.
LG Chem
LG Chem, the world’s biggest battery maker, has seen demand for electric vehicle (EV) batteries surge as tighter environmental regulations prompted automakers to make the switch. Its share price tripled between March and late August. electric car manufacturer However, it dropped 7 per cent on Thursday as investors worried about a possible IPO of the company’s battery business.
The company supplies EV batteries for Tesla, Renault Zoe and other vehicles in Europe. In addition to batteries, LG Chem produces a wide range of electronic materials for the LCD industry. Its products include LCD polarizers, which are multi-layer sheets of film applied to the top and bottom of TFT-LCD panels to transmit light from the backlight unit through the panel, and 3D FPR films.
It also produces nickel metal hydride batteries for hybrid cars and lithium-ion batteries for EVs. The company’s li-ion batteries are used in many new hybrid and fully electric cars worldwide. They have become more affordable than conventional lead-acid batteries.
The firm has a large production capacity in Europe and is building two more plants in the US. Its plant in Spring Hill, Tennessee is near GM’s assembly plant in Lordstown, Ohio. The other plant will be in Michigan. LG will also invest in a joint venture with GM to build another US EV battery cell plant. The companies will invest $2.3 billion in their Ultium Cells LLC joint venture.
