Battery production will determine the future of automotive

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As the electric vehicle market has been on a steady rise over the past few years, the demand for EV batteries is naturally increasing. Global EV-battery manufacturers generated an estimated 30 gigawatt-hours of storage capacity in 2017, according to McKinsey data. This means an increase of almost 60 percent compared to a year ago and this trend is expected to continue.

Battery manufacturing capability will determine new automotive pioneers

The driving forces of this trend are changing consumer priorities and the adoption of more sustainable policies than petrol and diesel vehicles. Some countries have already announced plans to ban the sale of new fossil fuel-powered vehicles by 2030. For now, we can expect the demand for zero-emission vehicles and vehicle-mounted batteries to increase significantly, although some have later deadlines to exit fossil vehicles.

Until recently, battery manufacturers were able to meet low-volume demand using limited automation and distributed information systems. However, this approach will not be enough when we want to supply billions of watts of energy that will be needed by electric vehicles in the future.

Although European vehicle manufacturers have had difficulties in securing adequate battery supply, Asian manufacturers dominate the electric vehicle batteries market. So there is a serious opportunity for European battery manufacturers to step in and satisfy the market demand.

Of course, keeping up with the increasing battery demand is not the only challenge. Keeping up with the rapid evolution of battery technologies is another challenge. Because battery technologies are changing rapidly, it is imperative to adapt quickly in order to effectively produce multiple battery types. In order for battery manufacturers to benefit from the advantages in the battery production market, they must scale the production over time, make long-term plans, and definitely need to get power from a production management system.


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