Several OEMs have announced partnerships to secure production capacity for battery cells and thus secure battery supplies to support their expansion plans in electrification.
With demand for battery electric vehicles growing, demand for battery cells has increased. Alternative approaches such as the use of Cell-To-Chassis and Cell-To-Pack topologies, combined with cost-effective lithium iron phosphate (LFP) batteries are also being actively pursued alongside other chemistries and approach.
LFP batteries can raise energy density at pack level and this is leading to their increasing in China, with BYD’s Blade Battery a primary example. Higher battery material costs are compelling the industry to also look at developing circular economies to maximize material usage through the full life cycle of the battery.
“With further incentives promoting electric vehicle use and some countries mandating bans on the sale of new combustion engine-powered vehicles, auto makers have responded by adjusting their businesses to become “all-electric” – effectively causing a rapid increase in the demand for electrification,” Kevin Mak, principal analyst in the Global Automotive Practice (GAP).
“The resulting levels of battery demand growth have been rapid. This has led to higher cost in battery materials, leading to developments in diversifying battery chemistry. With the concentration of battery material processing and cell production in China, there have been developments in further localizing material processing and cell production in Europe and North America.”