Billion Dollar Bets on E-Mobility
The major global automotive manufacturers (OEMs) have significantly raised the stakes in the e-mobility game, with billions of dollars in new investments recently announced. These investments have been spurred on by a combination of legislative and regulatory pressure on fossil fuels and market demand driven by environmental concern. “This is why it is so important for us to develop long-term collaboration with OEMs, to accelerate the development of e-mobility,” says Nicolas Batailley, Global E-mobility Leader for Solvay Performance Polyamides.
Daimler has said it will spend at least $11.7 billion (EUR10b) to electrify its full range of vehicles, from compact commuters to heavy-duty trucks. Ford has announced a similar level of electric vehicle (EV) investment, while Volkswagen plans to spend $40 billion (EUR40b) by 2030 on building EVs. And even at the luxury high-end, Bentley, Aston Martin, Jaguar, Ferrari and Porsche have set their sights on producing hybrid and EV models.
China is leading much of the electric vehicle (EV) revolution through government policy-driven demand creation. Carmakers eager to supply this market have made China the centre of EV production. Volkswagen, BMW, Daimler and Renault-Nissan are all making important investments there, while at the same time, they also have plans to significantly raise their investment stakes in Europe’s EV sector.
At the heart of the drive toward e-mobility is the battery. The industry has to overcome the constraints of the technology, particularly the battery pack cost per kWh. Currently it is in the range of $190 to $205kWh and Tesla recently announced that it will bring this down to below $100 kWh by 2020.
Overall, Bloomberg reports that global battery-making capacity is set to more than double by 2021. With 85% of battery capacity in Asia, there are a number of European initiative to develop a local battery value chain, with at least five gigafactories under construction. The European Commission has announced a Battery Action Plan, which sets out a number of EU measures that it says can help nations and the European industry at large become a world leader in battery technology.
According to Batailley, “the future is solid-state, which will double or triple energy density. This will really be disruptive.” With key expertise in metal replacement, thermal management, fire protection, fluid barrier and eco-friendly solutions, Technyl® teams are working closely with the next generation of battery and vehicle makers to gear up for a new era of e-mobility.
Find out more about our Technyl® offering for e-mobility.