{"id":140711,"date":"2024-07-25T08:42:24","date_gmt":"2024-07-25T07:42:24","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/fuel-for-thought-ev-battery-energy-demand-forecast.html"},"modified":"2024-07-25T08:42:24","modified_gmt":"2024-07-25T07:42:24","slug":"fuel-for-thought-battery-industry-blues-consequences-of-the-ev-slowdown","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2024\/07\/25\/fuel-for-thought-battery-industry-blues-consequences-of-the-ev-slowdown\/","title":{"rendered":"Fuel for Thought: Battery Industry Blues: Consequences of the EV Slowdown"},"content":{"rendered":"

Listen
\nto the Fuel for Thought podcast<\/a>.<\/p>\n

With a slowdown in enthusiasm for battery electric vehicles,
\nthe battery industry is wrestling with a combination of oversupply,
\nunderutilization of capacity and lower return on investments.<\/h2>\n

Since the second half of last year, the electric vehicle segment
\nis facing strong headwinds, much to the surprise of many, as EVs
\nhave been witnessing a strong demand in the last few years in
\nseveral markets around the world. The ambitious zero-emission (ZEV)
\nsales targets by both governments and automakers painted a rosy
\npicture about the EV industry and how quickly it is expected to
\nevolve.<\/p>\n

As the novelty of EVs fades, the last several months have
\nbrought forth the realization that there are still fundamental
\nissues that persist and need to be addressed for EVs to be a widely
\naccepted solution. Some of these issues are the lack of charging
\ninfrastructure, long charging times and the high initial cost of EV
\nacquisition. Most of these challenges are not short-term and will
\nrequire years, if not decades to be fully solved.<\/p>\n

What all the noise around EVs has led to is a massive investment
\nfrom many stakeholders in the EV ecosystem, right from material
\nsourcing to setting up significant manufacturing capacity for
\nbatteries. The faster-than-realized uptake of EVs was expected to
\npropel the demand for batteries which necessitated a capacity
\nexpansion to be able to able to meet the demand.<\/p>\n

However, with the slowdown, the industry is now looking at a
\ncase of oversupply, underutilization of the capacity and lower
\nreturn on investments.<\/p>\n

Curtailing investments<\/h2>\n

From what has transpired in the industry in the last few months,
\nthe OEMs and battery players have watered down their ambitions.
\nThis has led to several reports and official announcements of
\npulling back or postponement of investments in battery projects in
\nmarkets which were seen as the biggest growth centers for EVs.<\/p>\n

Most recently, it was reported that Automotive Cells Company
\n(ACC), a joint venture by Stellantis, Total and Mercedes-Benz, has
\ndecided to apply brakes on two of its upcoming EV battery plants in
\nEurope. The two plants are located in Kaiserslautern, Germany, and
\nin Termoli, Italy. Both plants were expected to have a production
\ncapacity of 40 GWh each in 2030.<\/p>\n

ACC also has a plant in Douvrin, France which is already in
\nproduction and is expected to start battery cell supply later this
\nyear. Together, ACC had announced an investment of $7.6 billion in
\nthe three plants. In the light of the slowdown, the three partners
\nare expected to review their investment plans by the end of the
\nyear or early next year.<\/p>\n

In fact, Mercedes-Benz has also announced a delay in its
\nelectrification plans, pushing back its goal of 50% electrified
\nvehicle sales by five years. In 2021, Mercedes-Benz had said that
\nit will have 50% electrified vehicle sales (BEVs and hybrids) by
\n2025, which is now expected to be reached in 2030.<\/p>\n

Earlier in May, mainland Chinese cell maker Svolt also announced
\nthat it is dropping plans to set up a plant in Germany. In 2022,
\nSvolt had said that it will set up a 16 GWh cell plant in
\nLauchhammer, Brandenburg to cater to European demand. The plant was
\nscheduled to start production in 2025. The tariff of mainland
\nChinese players in Europe also played a role in Svolt taking this
\ndecision.<\/p>\n

Volkswagen too has said that it will hold back from taking a
\ndecision on its fourth battery plant in Europe. The automaker was
\naiming to set up a new battery plant in Eastern Europe and was
\nlooking at Czech Republic, Hungary, Poland or Slovakia as possible
\nlocations.<\/p>\n

\"Battery<\/p>\n

“Most of the European cell manufacturing projects are currently
\nfacing challenges due to the recent slowdown in battery-electric
\nvehicle (BEV) sales. The investments made in new projects, or the
\nexpansion of existing facilities were based on the expectation of
\ncontinued astronomical growth rates in recent years. However, the
\npoor performance of BEV sales in 2024 has resulted in a surplus of
\nunused capacities for cell makers. The significant price gap
\nbetween European batteries, which primarily rely on NCM technology,
\nand LFP cells from China further complicates the situation for
\nEuropean cell makers, especially as car manufacturers strive to
\nintroduce affordable electric vehicles,” said
\nAli Adim, Manager, Technical Research, S&amp;P Global
\nMobility<\/a>.<\/p>\n

\"Battery<\/p>\n

Europe is not the only region where an investment slowdown is
\nbeing witnessed. Several reports suggest that OEMs and battery
\nplayers are also delaying their investments in North America.<\/p>\n

American automaker Ford also brought its battery investments
\nplans back to review board. Last November, Ford announced scaling
\nback of its Michigan plant in the US.<\/p>\n

“While we remain bullish on our long-term strategy for electric
\nvehicles, we are re-timing and resizing some investments. As stated
\npreviously, we have been evaluating BlueOval Battery Park Michigan
\nin Marshall. We are pleased to confirm we are moving ahead with the
\nMarshall project, consistent with the Ford+ plan for growth and
\nvalue creation. However, we are right sizing as we balance
\ninvestment, growth, and profitability. The facility will now create
\nmore than 1,700 good-paying American jobs to produce a planned
\ncapacity of approximately 20 GWh,” Ford said in a statement in
\nNovember 2023.<\/p>\n

BlueOval Battery Park Michigan is a $3.5 billion investment by
\nFord Motor Company which will produce lithium iron phosphate (LFP)
\nbatteries that will power a variety of Ford's next-generation EV
\npassenger vehicles and pickups. Previously, the plant was set to
\nmanufacture 35GWh of batteries and employ 2,500 people.<\/p>\n

There also have been reports that Panasonic, one of the biggest
\ncell manufacturers in the United States, may also delay investing
\nin additional capacity of battery plants in North America.
\nPanasonic was reportedly planning to set up a third plant in the
\nUS. However, the delay in investment may have put the plans for the
\nthird plant in a limbo. “There's a need to control the speed of
\ninvestment depending on the speed at which EVs spread,” Yuki
\nKusumi, Panasonic group's chief executive, was quoted as
\nsaying.<\/p>\n

There have also been reports that suggest Northvolt may delay
\nsetting up its plant in Montreal, Canada, which was expected to
\nbecome operational by 2026.<\/p>\n

Northvolt recently hit another roadblock when BMW, one of its
\nbiggest customers, reportedly cancelled its \u20ac2 billion order for EV
\nlithium-ion battery cells. The supply of the cells, which were to
\nbe produced in Europe at the Northvolt gigafactory at Skellefteå in
\nnorthern Sweden, was scheduled to start in 2024. Although
\nproduction delays were cited as one of the reasons for
\ncancellation, BMW may also be reviewing its cell demand, given the
\nslowdown in EV sales.<\/p>\n

The cooling down of demand has also led to a significant drop in
\nthe prices of critical battery raw materials such as nickel cobalt
\nand lithium. According to S&amp;P Global, Prices for lithium,
\nnickel and cobalt sharply decreased in 2023 and are expected to
\ndecline further in 2024.<\/p>\n

High voltage battery forecast
\ndata<\/a>.<\/p>\n

By Srikant Jayanthan, Senior Research Analyst II, S&amp;P Global
\nMobility<\/p>\n","protected":false},"excerpt":{"rendered":"

Listen
\nto the Fuel for Thought podcast.With a slowdown in enthusiasm for battery electric vehicles,
\nthe battery industry is wrestling with a combination of oversupply,
\nunderutilization of capacity and lower return on investments.Since the second half o…<\/p>\n","protected":false},"author":479,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-container-style":"default","site-container-layout":"default","site-sidebar-layout":"default","disable-article-header":"default","disable-site-header":"default","disable-site-footer":"default","disable-content-area-spacing":"default","footnotes":""},"categories":[3267],"tags":[61,122,127,129,124,128,125,132,131,133,126,130,123,66,94,88,97,56,64,65,60,3344,3351,3357,3360,3335,3340,3362,112,3353,40,75,95,3350,3352,3356,3343,3359,3339,3345,3334,3341,104,3354,33,120,3358,3349,3337,3348,105,101,98,115,30,29,41,86,3342,3361,70,69,68,72,71,26,118,108,87,3355,46,55,48,52,54,51,50,83,3338,62,58,57,3336,109,35,3346,59,63,85,79,82,96,80,27,81,114,44,42,43,45,38,39,110,117,100,111,116,3300,73,89,90,92,91,93,84,78,37,102,34,36,77,67,74,99,113,3347,119,28,121,32,47,49,53,103,31,76],"class_list":["post-140711","post","type-post","status-publish","format-standard","hentry","category-car-or-automobile","tag-airpods","tag-anime","tag-anime-characters","tag-anime-cosplay","tag-anime-edits","tag-anime-merchandise","tag-anime-movies","tag-anime-news","tag-anime-recommendations","tag-anime-reviews","tag-anime-series","tag-anime-streaming","tag-animes","tag-app-store","tag-app-store-samsung","tag-appgallery","tag-appgallery-oneplus","tag-apple","tag-apple-music","tag-apple-tv","tag-apple-watch","tag-auto-financing-guide","tag-automobile-industry-news","tag-automobile-laws-and-regulations","tag-automobile-shows-and-expos","tag-automobile-specifications","tag-automobile-technology","tag-autonomous-vehicles","tag-bbc-sport","tag-best-cars-for-long-drives","tag-best-mobile-games","tag-bixby","tag-bixby-xiaomi","tag-car-accessories","tag-car-comparison","tag-car-customization-ideas","tag-car-insurance-advice","tag-car-interior-design-ideas","tag-car-maintenance-tips","tag-car-resale-value","tag-car-reviews","tag-car-safety-features","tag-champions-league","tag-city-cars","tag-cyberpunk","tag-cyberpunk-2077","tag-driving-tips-and-tricks","tag-eco-friendly-cars","tag-electric-vehicles","tag-family-cars","tag-fantasy-football","tag-fifa","tag-football","tag-formula-1","tag-fortnite","tag-free-fire","tag-free-mobile-games","tag-freebuds-pro","tag-fuel-efficiency-tips","tag-future-of-automobiles","tag-galaxy-a52","tag-galaxy-note-20","tag-galaxy-s21","tag-galaxy-watch-4","tag-galaxy-z-fold-3","tag-game","tag-games","tag-golf","tag-harmonyos","tag-highway-cars","tag-how-to-backup-iphone","tag-how-to-factory-reset-iphone","tag-how-to-reset-iphone","tag-how-to-restore-iphone","tag-how-to-unlock-iphone","tag-how-to-unlock-iphone-5","tag-how-to-unlock-iphone-6","tag-huawei","tag-hybrid-cars","tag-ios","tag-ipad","tag-iphone","tag-latest-car-models","tag-live-soccer","tag-lol","tag-luxury-cars","tag-macbook","tag-macos","tag-mate-40-pro","tag-mi-11-lite","tag-mi-home-security-camera-basic-1080p","tag-mi-home-security-camera-basic-1080p-huawei","tag-mi-smart-band-6","tag-minecraft","tag-miui","tag-mlb-scores","tag-mobile-game-design","tag-mobile-game-development","tag-mobile-game-marketing","tag-mobile-game-monetization","tag-mobile-games","tag-mobile-gaming","tag-nba-scores","tag-nba-standings","tag-nfl","tag-nfl-scores","tag-nhl-scores","tag-off-road-vehicles","tag-one-ui","tag-oneplus","tag-oneplus-9-pro","tag-oneplus-buds-pro","tag-oneplus-nord-ce-5g","tag-oxygenos","tag-p40-pro-plus","tag-poco-x3-pro","tag-pokemon","tag-premier-league","tag-pubg","tag-pubg-mobile","tag-redmi-note-10-pro","tag-samsung","tag-samsung-pay","tag-soccer","tag-sports","tag-sports-cars","tag-steam","tag-steeam","tag-top-10-anime","tag-valorant","tag-when-do-the-iphone-7-come-out","tag-when-does-the-iphone-7-come-out","tag-when-is-the-iphone-7-coming-out","tag-world-cup","tag-xbox-series-x","tag-xiaomi"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/140711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/users\/479"}],"replies":[{"embeddable":true,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/comments?post=140711"}],"version-history":[{"count":1,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/140711\/revisions"}],"predecessor-version":[{"id":142261,"href":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/wp-json\/wp\/v2\/posts\/140711\/revisions\/142261"}],"wp:attachment":[{"href":"http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