A slightly famous Chinese based company has risen to become the world’s largest electric vehicle battery maker. As has been previous market trends, China is by a large proportion of the largest electric vehicle market. Recently, to increase its growing industry, China started nudging oversea car makers to utilise locally manufactured batteries in the country. At that time, the only company with a supply capability of that magnitude was Contemporary Amperex Technology or CATL
Vehicle manufacturers were not impressed but accepted the terms then. While on tour in CATL headquarters in 2017, three Daimler executives showed their frustration during an official meeting. According to their remarks, it was quite apparent that their partnership with the battery producing company was not of their choosing.
According to last year’s sales records, China EV sales came to a cumulative 60% of all-electric vehicle sales in the world. According to the International Energy Agency, global plug-in car sales are projected to be at a total high of 23-43 million per year by 2030. In its estimates, electric vehicles are expected to constitute 57% of sales in China, 26% in Europe and 8% in the United States. For that to see the light of day, car manufacturers would require a supply of tons of lithium-ion batteries
CATL is taking charge of this by copying Huawei’s business model and priorities such as research and development in a bid to provide frequent tech improvements
But China’s dominance in Electronics grows to be a significant concern for U.S. and European legislators, who are becoming increasingly aware of the tech-based country’s influence on new technologies and products, China has also attempted, to tie up a lot of the world’s cobalt supply chain, a valuable part of a battery’s manufacturing process.
While Asian companies have taken the lead in electric battery technology, until recently, the European car industry was focusing on developing its diesel engine technology.
In the first half of 2019, the US has so far allowed the free progression of the market, which has accounted for 13 per cent of the world’s EV sales. A highly touted battery startup company ended up bankrupt and then a Chinese automotive parts company bought it. The Tesla mega factory in Nevada in cooperation with battery manufacturer Panasonic Corporation was designed to supply only Tesla cars.
Leaders in Europe have, however, formed a joint venture of government agencies to enable the automobile battery sector to develop, with multiple infrastructures now under construction and public funding flowing into the industry at to the amount of at least € 1 billion ($1.1 billion).
This post was originally published on The Picayune Current