Electric car production has long since stopped being exceptional. Sales and production of this kind of car are increasing year after year due to the pressure the European Union is giving manufacturers to electrify their fleets and its explosion in Asia. But who supplies these vehicles' batteries?
Various stories about Tesla developing its network of gigafactories or Volkswagen establishing a facility in Sagunto specifically for this reason have surfaced in recent months. Mercedes intends to construct them independently, cutting away middlemen. However, the vast majority of the batteries in electric vehicles have the logos of the firms listed below and are located underneath the seats.
Who is who in the battery industry
Asia is the only place to consider when discussing battery production. For a nascent market, the eastern countries have become experts in producing this kind of component. Consider the fact that China is the biggest consumer and manufacturer of electric automobiles.
Asian companies are also producing batteries alongside novel structural systems like chassis-integrated batteries or battery exchanges, like the project that NIO is currently testing in actual usage.
However, a report by SNE Research compiles the top corporations globally, month by month, in terms of battery manufacturing.
CATL
The world's largest supplier and manufacturer of batteries for electric vehicles is the Chinese firm CATL. Its components are present in electric vehicles made by Tesla, BMW, or Volkswagen. Of course, there are other Chinese brands, such with the Aiways U5.
CATL has been a corporation sponsored by the Chinese Government, which has always kept its capital in the nation and has kept it afloat until its explosion, aware of the importance in the supply of batteries for electric cars. It now manufactures the most of these parts, between 8 and 10 GWh of batteries each month, making it the leading producer of these components. At the moment, its competitors can only produce 4 GWh.
All of this has made it possible for it to rank among the 100 most important businesses for Time magazine in 2022. Their brand-new sodium ion batteries are the cause. These parts can be produced using sea water and solve one of the major issues with battery manufacturing, which is a huge need for fresh water.
Energy Solutions by LG
The LG battery division is a few bodies behind. In monthly reports, LG and BYD are typically listed as the world's second-largest battery manufacturers. Their output typically ranges from 3 to 4 GWh per month.
The name LG Energy Solutions was previously LG Chem until September 2020. Following the acquisition of the current name, the South Korean company expanded its operations by providing services associated with battery production, such as residential energy storage facilities. In terms of electric vehicles, LG instals its components in the Chinese-made Tesla Model 3 and Renault ZOE, and it has been a key partner of European companies as they embraced this technology. Some vehicles with South Korean modules include the Mercedes EQC, Audi e-tron, and Jaguar i-Pace.
BYD
As we previously mentioned, BYD is another brand that frequently ranks high in the production of batteries. In our nation, this Chinese corporation is well-known for providing buses to cities like Madrid.
BYD produces batteries not just for electric automobiles, like LG does. They are also interested in larger-scale installations like industrial ones, as well as buses, vehicles, and electric bikes. Despite these commercial sectors, it is notable for the production of electric vehicles, with more than 100,000 units sold in total between hybrid and electric vehicles.
Panasonic
Fights with LG and BYD, two reputable companies in our nation. Another major battery manufacturer, Panasonic, produces roughly 3 GWh of batteries per month. It is also the sole Japanese company to make the list of the top 10 manufacturers of this particular component.
In this instance, one of the businesses that has been most closely associated with Panasonic's future is Tesla. In fact, cars with the new batteries mounted must be delivered this year. A recent investment of 4,900 million euros in new mobility, of which 3,200 million are specifically allocated to the development of these components, demonstrates the dedication to this kind of product.
Sk On
Sk On is located close to the 2 GWh produced monthly threshold. Like LG, Sk On is a business that was established from Sk Innovation and is solely focused on producing batteries.
According to Electrive, the company now has three plants in China with a combined capacity of 27 GWh per year, so its output should be near to its maximum. Additionally, it has already been proposed to build a new facility, which would be the biggest of them all and would cost 2,200 million euros.
Ford is one of Sk On's most significant business partners going forward. The US company has planned an investment of $11.4 billion for the building of two factories in partnership with the battery industry. necessary to advance your Ford Model e approach.
CALB
CALB is another manufacturer that is expanding rapidly. The company has already surpassed the 1 GWh production threshold for batteries, and its expansion has aided Chinese enterprises in this industry in their push into South Korea.
Two additional factories in China are included in the expansion plans for this growth. When the new facilities are operating at full capacity, it is anticipated that they will be able to produce 50 GWh more each.
Guoxuan
Guoxuan is one of the Chinese businesses that has caught the attention of the West. To ensure the production of these parts for the cars that the Germans sell in the Asian nation, this battery manufacturer sold Volkswagen 20% of its shares in 2020.
However, they also unveiled new batteries featuring LFP (lithium iron phosphate) cells last year, which would achieve a record energy density of 212 Wh/kg. This technology, which is already included in the Tesla Model 3 that has just arrived from China, appears to have been made in the US.
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