As EVs grow, a major shake-up in the battery industry. Tesla might have to completely redesign its Gigafactory in Nevada.<\/figcaption><\/figure><\/div>\n\n\n\nThe steep demand is already forcing automakers to revamp their business strategies as they prepared for the change, according to Fitch Solutions, which is an arm of Fitch Rating Services. Automakers are employing varying strategies to ensure cost-effective and reliable access to the lithium-ion batteries that power EVs and are therefore essential to their electrification commitments. <\/p>\n\n\n\n
For the high-volume OEMs, a unifying ambition is to reduce their technological, geographical and geopolitical dependence on individual suppliers, the report said. <\/p>\n\n\n\n
\u201cIn some cases, those strategies extend to vertically integrating upstream activity as far as the extraction and refinement of the critical raw materials, creating a whole stream of activity outside of automakers core operations, numerous joint ventures and ultimately a new set of economic, political and operational risks,\u201d Fitch noted. <\/p>\n\n\n\n
Regardless of the specific strategy, Fitch says the overriding ambition is to develop more resilient and localized supply chains, which is congruent with a more regional emphasis of supply chains. <\/p>\n\n\n\n
While automakers are looking for ways to build more batteries, they\u2019re also exploring new battery technologies, such as solid-state batteries, which Toyota believes is the future of electric vehicles. Tesla\u2019s changing the makeup of its batteries, reducing the amount of cobalt needed for them. Daimler CEO Ola K\u00e4llenius announced the company was pursuing a revolutionary new battery technology as it converts to an all-BEV line-up by 2030.<\/p>\n","protected":false},"excerpt":{"rendered":"
As electric vehicles grow more popular, carmakers face the threat of a global battery supply shortage for EVs as soon as 2025, according to a new study by Bank of America. The shortages are only going to intensify in the five-year period following. Read the story at TheDetroitBureau.com.<\/p>\n","protected":false},"author":20009,"featured_media":202374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,10],"tags":[1806,1809,1810,1808,1807],"make":[],"post-state":[335],"category_old":[],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/206090"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/20009"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=206090"}],"version-history":[{"count":2,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/206090\/revisions"}],"predecessor-version":[{"id":206092,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/206090\/revisions\/206092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/202374"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=206090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=206090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=206090"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=206090"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=206090"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=206090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}