Saturday, October 23, 2021

VW, Daimler, Stellantis face raw material bottleneck for EV batteries - Automotive News Europe

Last updated Wednesday, October 13, 2021 09:16 ET , Source: NewsService

FRANKFURT -- Volkswagen Group, Daimler and Stellantis are among major automakers that have been racing to secure battery cell supplies in Europe but may face a bigger challenge as they seek to go electric - finding enough battery raw materials.

Failure to obtain adequate supplies of lithium, nickel, manganese, or cobalt could slow the shift to electric vehicles, make those vehicles more expensive and threaten automakers' profit margins.

"There is a serious question as to whether supply can keep up with demand across the battery supply chain," says Daniel Harrison, an auto analyst at Ultima Media.

Until recently, Europe was seen as having lost the battery race to the dominant Asian manufacturers like CATL in China, South Korea's LG Chem, and Japan's Panasonic, says Ilka von Dalwigk from EIT InnoEnergy, which has set up a company network funded by the European Union in the "European Battery Alliance."

"Nobody saw that as a problem," says von Dalwigk. "The thinking was that we can import battery cells."

But forecasts from banks like UBS that EV sales would soar over the coming decade shook the political establishment and automakers and forced a rethink of battery production.

This was followed by EU funding programs worth billions and major battery plant announcements by automakers and suppliers. VW alone plans six battery plants in Europe, while Daimler will build four with partners.

Recently, battery cell factory announcements have come thick and fast, and EIT InnoEnergy...

Read Full Story: https://europe.autonews.com/suppliers/vw-daimler-stellantis-face-raw-material-bottleneck-ev-batteries

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