Five Electric Vehicle Suppliers
As the light-vehicle automotive industry shifts to electric vehicles, suppliers that make parts for internal combustion engines are facing a changing landscape. Sales of these components are declining while those for EV batteries and powertrains are rising.
EV battery suppliers must secure raw material supplies and manage production costs. The Trump administration’s policies aim to help them achieve these goals by encouraging domestic sourcing of critical minerals.
LG Energy Solutions
The company produces lithium-ion polymer battery cells and modules that power electric vehicles. LG Energy Solutions accounts for more than 20% of the global EV market, and it supplies car makers such as Tesla and General Motors. The company also manufactures batteries for drones and ships, and it supplies the battery-powered spacesuits used by Nasa astronauts.
The Michigan facility, formerly known as LG Chem Michigan, is one of eight that the South Korean company is building across the U.S. The plants will have a combined capacity of 300 gigawatt-hours, and they are intended to serve major car companies that plan to launch new EV lines.
LG Energy Solution is committed to environmental and social responsibility. It has implemented a three-year plan that includes the development of a sustainable battery value chain and the promotion of renewable energy. It is also working to increase its use of recycled materials and ensure that it sources raw materials in an environmentally, socially, and transparent manner.
To implement this plan, the company must secure adequate financial resources and develop a skilled workforce. This can be accomplished by diversifying the company’s revenue streams and seeking strategic partnerships and government support. It can also promote employee retention by implementing various initiatives that foster job satisfaction. This can include providing training courses and seminars, and partnering with educational institutions to provide specialized skills training.
BYD
BYD is a leading electric vehicle supplier, with a portfolio that includes cars, buses, and trucks. Its best-selling model is the e6 sedan, which has a range of more than 300 kilometers and can charge to full capacity in under 30 minutes. It also has a battery that is environmentally friendly, safe, and durable.
The company has expanded its operations outside China, with a plant in Canada that produces electric buses. In addition, it has a plant in Brazil that makes lithium iron phosphate batteries, the type used in the e6. The company Electric Sightseeing Car has also developed a new battery called the “blade,” which offers superior safety, durability, and performance.
Although it has been slow to make inroads into the U.S., the Warren Buffett-backed firm has made rapid progress in other markets. Its exports quadrupled last year, with most going to India, Thailand, and Brazil. The company is also reducing shifts at its Shenzhen factory, which produces the Han sedan, from three to two per day, according to people familiar with the matter.
In addition to passenger vehicles, BYD produces a wide variety of commercial vehicles, including airport shuttle buses, public transit buses, tourism and commuting coaches, distribution trucks, and specialized trucks for ports and airports. The firm also offers power storage solutions for businesses and households, with a range of battery packs.
SK On
SK On is the battery division of South Korea’s electric vehicle supplier oil and gas giant SK Innovation. It has grown to become the world’s fifth-largest EV battery maker. It has an order backlog of more than 80 gigawatt hours. It is also investing in new production capacity, including a plant in Turkey that will have an annual capacity of up to 45 GWh. Ford is one of SK On’s major clients. The two companies are partners in BlueOval SK, a joint venture that produces batteries for the Ford F-150 Lightning.
Earlier this year, SK On announced a deal with Ford to build a battery plant in Turkey. The partnership aims to produce more than 45 GWh per annum by 2025. SK On also has factories in the US, China, and Hungary.
The company’s lithium-iron phosphate (LFP) batteries have a cost advantage over nickel cobalt. However, the company’s profitability depends on where it sources the materials for its batteries. The US climate tax law requires EV makers to source critical minerals for batteries outside China, and SK On is working to do so.
SK On’s VP, Jae-won Chey, said Kentucky “may be known for bourbon and horse racing, but it will soon be recognized worldwide for producing EV battery cells.” Its LFP batteries provide an energy storage solution that is safe, fast-charging, and long-lasting.
Panasonic
Panasonic is one of the world’s largest electric vehicle battery producers and manufacturers a wide range of consumer electronics, including televisions, audio equipment, cameras, and mobile phones. The 104-year-old company is also involved in the manufacturing of medical, automotive, and industrial products. Its EV business brings in more than $1 billion in annual revenue.
The company’s roots in design date back to the 1950s, when founder Konosuke Matsushita invited a young professor from Chiba University to establish an in-house product design department. This was the first time that such an effort had been made in Japan, and it marked a turning point for Panasonic.
In 2008, Panasonic bought a controlling stake in Sanyo, which makes rechargeable batteries. Its ownership of this subsidiary allows the company to accelerate its expansion in battery businesses. The company also merged with Panasonic Electric Works, which produces lighting systems and electrical wiring fittings.
As a result, the company has increased its production capacity for lithium-ion cells by four times since 2016. It is also increasing the energy density of its cells.
The company is planning to build more EV battery plants in the US. It has already established a plant in Ohio, and it is considering building a factory in Kansas. It is not yet clear whether this will be its first American plant.
