China is probably the most significant player in the future of cars in particular electric vehicles (EV) and is pushing ahead with its New Energy Vehicle (NEV) scheme, with major car makers announcing plans for putting EV at the centre of their long-term strategies. The emerging boom in EV has supercharged the race for expansion of lithium-ion battery (LIB) production capacity.
The result has been: 1) severe cost pressures, driven by surging material prices, and 2) intensifying competition. What will make the difference is technology, as raw material prices are ‘out of control’ due to constraints on supply, especially for the vital component cobalt. So the only way variable costs can be brought down is through the technology of chemistry transition.
Who will be taking the charge?
Read our full report which examines these issues in more detail and who is likely to cope the best in the sectors complex circuitry.
Deep dive into structural change of booming demand