Top Electric Car Suppliers
Last year, EV sales rebounded faster-than-expected. But the soaring growth has put stress on EV supply chains and production capacity.
Having the right supplier network can help OEMs mitigate risks and accelerate time to market (TTM). It also gives them options for sourcing critical parts when shortages arise.
EVs are also helping drive policy efforts to promote responsible mining for the raw materials that make up their batteries. This can help improve traceability.
1. BYD
Among the world’s largest EV producers, BYD has a unique advantage: It can design and manufacture every component of its cars. This means it can control costs and quality and avoid production delays — a key hurdle for many EVs that may not be fully cost-competitive with gasoline models until 2021.
Moreover, its vertical integration allows it to quickly adapt to changing regulations, such as China’s recent push for hybrids. While the country’s rules require cars to have a large battery, which reduces cargo space and range, BYD built an engine that’s more compact than its rivals’ and meets the new requirements with ease.
The company is also a leading producer of lithium-iron-phosphate (LFP) batteries, which electric car supplier have higher energy density and shorter charging times than their NCM counterparts. These advances, coupled with the company’s cell-to-pack battery technology, have helped BYD increase its EV sales in both the domestic market and abroad.
However, it remains to be seen whether BYD can maintain its growth momentum. Its reliance on intermediaries to reach its consumers might result in a less personalized relationship with customers, and the company’s diverse revenue streams might be at risk of being pulled into different directions by anti-China sentiment. Consequently, it’s important for the company to rethink its business model to gain competitive advantages in each of its segments.
2. LG Energy Solutions
LG Energy Solution produces lithium ion battery cells and modules used in EVs. It supplies 13 of the world’s top 20 automotive brands, as well as IT products and power tools. The company has also expanded into the energy storage system (ESS) industry, supplying 10 of the world’s largest ESS makers.
It has seven manufacturing facilities operating or under construction in North America, including two standalone plants in Holland and Queen Creek, Arizona, plus five joint-venture facilities — three with General Motors, one each with Honda and Hyundai, as well as a facility located in Biskupice Podgorne near Wroclaw, Poland. LG’s local production network allows the firm to optimize logistics costs and adapt to changing market demands.
The Holland plant is set to fulfill the role of a “mother factory” in the United States, providing operational support and employee training for other facilities in the region. It is slated to produce 20GWh of high-nickel NCMA pouch-type battery cells annually beginning in 2025. The cells will be incorporated into battery modules that will be shipped to Toyota’s BEV assembly plants in North America, including the new Toyota Motor Manufacturing Kentucky.
LG’s local production network also helps the firm qualify for US EV tax credits. In addition to boosting productivity, the localization strategy provides the company with access to a large pool of talented employees.
3. Nissan
Nissan has a long history of innovation and it continues to lead the industry into the future of electric vehicles. The Japanese automaker offers a wide variety of sedans, SUVs and pickup trucks that appeal to every buyer’s needs. From the affordable and versatile Versa to the powerful GT-R, Nissan has a model that fits every lifestyle.
The company’s storied history began in 1928 when exceptional entrepreneur Yoshisuke Aikawa became president of Nihon Sangyo. At that time, the firm primarily dealt in foundries and car parts. But Aikawa’s knowledge of the US automotive scene convinced him that cars would become popular in Japan as well.
In 1933, the Aikawa-led business merged with Tobata Casting, which specialized in casting and automobile production. That’s when the name “Nissan” was born.
Today, Nissan is one of the world’s most popular vehicle brands. The company’s iconic vehicles include the LEAF, Altima and Frontier. And of course, the mighty GT-R, which earned its reputation as a king of the track and a godslayer of supercars.
Nissan’s EV models are powered by the company’s proven, cutting-edge electric drivetrain. The battery pack is located under the floor of the vehicle where a traditional gasoline engine might normally be, and that creates more space for passengers and cargo. It’s also more energy-efficient than the typical hybrid vehicle. Plus, Nissan EVs have the ability to receive software updates over the air, which is a big advantage over many competing models.
4. Tesla
Tesla makes electric cars, batteries for them, and stationary battery energy storage devices from home to electric car supplier grid-scale. It also has a line of solar panels and shingles that generate renewable energy for homes.
Founded in 2003, Tesla has a unique business model in the stodgy automotive industry. It has a strong technology focus and follows the disruption credo of tech companies like Apple and Google.
The company produces EVs in its own factories, instead of relying on traditional automakers to produce them. This has allowed it to slash prices for its vehicles and attract more buyers. Its manufacturing process is also more efficient than the traditional auto industry model, reducing production costs and time.
A Tesla vehicle’s long-range, quick charging capabilities mean that drivers can go a lot further on a single charge than with most gasoline vehicles. In addition, Tesla’s innovative technologies can allow your car to drive itself on highways and parallel park itself without you having to touch the wheel.
The company’s electric cars are designed with luxury and style in mind, making them perfect for discerning drivers. You can find a variety of options, from panoramic sunroofs to premium sound systems. It also pioneered the “frunk,” a space in front of the trunk that you can use to store stuff, which other carmakers now incorporate into their vehicles.
