We don’t need to talk about the emerging trend of electromobility. An increasing percentage of cars that hit the road are powered by electricity. In Europe, it will only be possible to produce cars with an internal combustion engine until 2035, and the world’s largest car company is the electric car company Tesla.
According to Tesla CEO Elon Musk, lithium batteries are even the new oil.
Most of the production is in Asia
Most batteries are currently manufactured in Asia. China’s Contemporary Amperexx Technology Co (CATL) alone produces about 30% of the world’s electric vehicle batteries. This is wrong, according to Ford CEO Jim Farley, and that’s why US companies should try to bring production to the US.
This is because many companies realise that the more electric cars will be produced in the future, the more batteries will be used. This could give Asia a huge advantage over the USA when US companies will be dependent on imports from Asia.
US companies are indeed investing in battery production
A lot of companies are already investing into battery manufacturing in the USA lately. The aforementioned Ford is building 3 electric battery manufacturing plants in Tennessee and Kentucky. It’s partnering with Korean company SK Innovation to do this, and these plants are expected to produce a batteries with a capacity of 22 gigawatthours per year.
General Motors (GM) is also building 3 more plants in the USA, working with a LG Chem, also from Korea. These plants should produce batteries with a capacity of 110 gigawatthours per year.
We recently informed you about Stellantis, which is also building plants in partnership with Samsung SDI. They plan to build 2 plants.
Of course, we must also mention Tesla, which is focusing heavily on battery production and is looking for suppliers of the necessary raw materials everywhere in the world in order to have a competitive advantage, as you can read in our previous article.
Even the non-US carmaker Toyota has announced investments in an electric car battery plant in the USA. The location chosen was North Carolina. The company plans to produce batteries for approximately 1.2 million electric cars per year.
Finally, we would also recommend reading our article about Hyundai’s investment.