Posted July 29, 2022
By Ray Blanco
Battery Building Boom
When it comes to electric vehicle (EV) manufacturing, one of the most important pieces to the puzzle is the battery. No battery, no EV…
So when you see stories like the Stellantis CEO saying he expects shortages of the batteries and raw materials needed to make electric vehicles in the coming years, it doesn’t exactly inspire confidence in the sector right now. However, the global automotive industry is pivoting hard into EVs as demand skyrockets and government regulation calls for more EVs in service.
CATL is the world’s largest lithium battery manufacturer. But #2, Panasonic, is looking to scale up and catch up. The Tesla battery partner just announced it will spend $4 billion to build a 4 million square foot battery mega factory in Kansas that will employ 4,000 people.
With this move, Panasonic is doubling down on its bet that EV demand will continue to grow over the years and a new factory is just what the doctor ordered for some bolstered battery production.
To help meet that increased EV demand, Panasonic is putting up big bucks to grow its production capacity in other areas as well. Citing plans published in April, Panasonic is looking to invest approximately $2.9 billion in targeted growth areas including automotive batteries and supply chain software.
And Panasonic isn’t the only company looking to get a piece of the action, companies from all over are gearing up for EV battery production. For example, LG Energy Solutions recently stated plans for two facilities this year to increase capacity. LG also announced a partnership with GM for a third battery cell plant that will be located in Michigan.
In total, there are at least 13 EV battery production plants planned to open in the US over the next few years.
The massive ramp in battery production for the EV industry is driving huge demand for battery materials like lithium, as well as materials and components needed to build a complete power cell.
And as EV manufacturing scales, so does the need for breakthrough battery technology developments. Suffice to say I’m very excited about the coming EV boom and now is a great time to get in ahead of the crowd.
To a bright future,
Chief Technology Expert, Technology Profits Daily