- Batteries are essential for automakers as they power their groups with electricity for the next several years.
- The battery industry is full of opportunities, from new technologies to sourcing and recycling.
- Here’s a look at the many startups racing to lead the battery space.
The future of the auto industry depends, now more than ever, on batteries.
Batteries are critical in the multi-billion dollar plans to create a range of electric vehicles over the next several years. They matter because automakers seek to differentiate themselves and their offerings from one another. It is a critical factor as the industry seeks to abandon its gas- and carbon-neutral past – if it can be developed in efficient, cost-effective and environmentally sustainable ways.
The electric car battery market is very important, as it could reach at least $360 billion by 2030, according to McKinsey.
At Insider, we took a look at EV battery technologies that heat up. We’ve looked at how automakers can secure an adequate supply of batteries. And we’ve talked to startups that recycle these batteries well after they run out.
Below, you can read more about the battery startup to watch, the metal battery shortage the industry is facing, and how automakers are navigating this important part of their business. You can also read more about the types of battery technologies that are winning the industry.
Start to watch
Automakers and emerging electric vehicle manufacturers are counting on dozens of clothes in the battery space to help them out.
As a result, new start-ups are emerging to tackle different parts of the battery chain, from supply to new chemicals to recycling. These companies bring in a lot of capital these days as well.
The crisis in Ukraine has highlighted the impact that a shortage of a key metal battery – nickel – can have on the car business.
But cobalt and lithium have long been a pending crisis for the industry, too. Securing an adequate supply of these substances, especially lithium, is a top priority for auto executives. These executives need massive amounts of material at the right price that can be secured in an environmentally and financially responsible manner.
It’s not an easy task, and they need to do everything they can to get this part of the electric vehicle supply chain right.
Battery makers are critical to automakers transitioning to electric vehicles. Take a look at the planned 10-page presentation that convinced Renault to support a single $119 million round of funding for a startup.
How automakers commute to work
Automakers around the world are betting their entire future on electric products. But that future is under threat from the pending EV battery shortage.
Some are seeking partnerships to secure adequate supplies. Some are making huge investments in space. Some believe their approach to batteries can help them push past range records so far. And some fear that the impact of this shortage will get worse.
Specific battery technologies
Range anxiety is one reason customers are reluctant to switch to electric. But battery chemistry and technology can help boost range, performance, and even vehicle safety. So startups in the space are testing out the best technologies that can give their product — and their customers — a boost.
From solid-state installations to battery swaps to technology that claims to double Tesla’s range, startups are striving in every way to gain a competitive advantage in the business.