New battery technology benefits companies that strive to meet the world’s growing needs for electric cars. Lithium iron phosphate and lithium-ion are dominating the current battery landscape. However, both have pros and cons regarding raw materials, range, and other factors. For example, Tesla (TSLA) uses lithium-ion and LFP both, whereas BYD (BYDDF) uses specialized LFP batteries only. Let’s learn how new battery technology will revolutionize electric cars.
Automakers and battery companies are heavily investing in making denser, cheaper, and lighter batteries. Some companies give old batteries a new twist for incremental improvements. Others improve battery assembly or battery form factor for a huge cost gain and performance. As a result, it is forecast that big breakthroughs and radically different chemistries will emerge.
General Motors (GM) added tweaks in the lithium-ion chemistry to cut costs for its next-generation Ultium batteries. Likewise, Tesla’s 4680 battery cell can save expenses and five other benefits through a larger size and state of engineering. China’s CATL is the world’s largest battery maker, claiming more improvements in its new Kirin battery as its cells are now available in packs.
Various players are working on far-reaching battery innovations. CATL focuses mainly on sodium-ion batteries, QuantumScape (QS), SolidPower (SLDP), SES (SES), and Toyota Motor (TM) are working on solid-state batteries. Both types of batteries are potential game changers but face some technical hurdles.
Ram Chandrasekaran, a mobility analyst at Wood Mackenzie says that more powerful batteries will increase the adoption of electric cars. So the entire platform of vehicles surrounds the battery that supplies power and serves as a critical structural element in electric cars.
Race of Battery Technology
Another way in which new battery technology will revolutionize electric cars is through battery technology. The race for new technology is not about electric cars only. The battery powers everything from laptops to power drills. Moreover, the utility sector is a growing source of demand for batteries. But many vehicle companies shot the lead in this technology race for certain reasons. Electric cars make up to the order of 80% of lithium-ion batteries. The prices of raw materials for batteries also increase
In Asia, China commanded 90% of battery manufacturing in the world in 2021. However, Wood Mackenzie forecasts the fall of share below 70% by the decade’s end. Across Europe and the United States, various battery manufacturing plants will form by the decade’s end because of fear of lithium shortages. In addition, companies want to reduce geopolitical risk and transportation costs since it is costly to ship heavy EV batteries.
The Department of Energy in the United States announced $3.1 billion in funding on May 2 to boost battery production. It focuses mainly on processing and manufacturing facilities, and additional $60 million help to find secondary uses for already used batteries. This money comes from the infrastructure bill in 2021.
To Wrap Up
This was a complete guide on how new battery technology will revolutionize electric cars. As per market research firm Auto Pacific, electric car sales will increase four-fold in the United States in the coming five years. It will climb from 2% of car sales to 7% in 2026. Moreover, the demand for cheaper and better electric vehicle batteries is creating a rush. It is because many companies delve into new technologies to meet the demand.