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$110 Billion Investment to Be Made by Electric Vehicle Manufacturers for Battery Production; Many Companies Will Supply Their Own Demand

Written by Roberta Souza

Published on 09/08/2022 at 20:13

Automotive, Electric Vehicles

Foto: reprodução pixabay.com

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Brands Like Volvo, Tesla, and Toyota Are Investing Billions in Own Battery Production to Supply Their Electric Vehicles

According to an analysis by consulting firm AlixPartners, a total investment of US$ 330 billion in the supply chain of electric vehicles is expected by 2026. Of this amount, one-third is expected to be spent on battery production, which aligns with the decision made by multiple countries to ban combustion cars by 2030.

However, as highlighted by the Época website, what stands out is the fact that several automakers have decided to partner with their battery suppliers or stop negotiating with them altogether, thus becoming their own suppliers.

Volvo Will Build a Factory with a Production Capacity of 500,000 Batteries Per Year

The company Volvo is the latest to join this strategy by announcing its partnership with Northvolt to build a factory with a production capacity of 500,000 batteries per year, capable of exclusively equipping the company’s electric vehicles and those of Polestar, which belongs to the same group.

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Which Automakers Are Focused on Battery Production?

Among the various brands seeking to free themselves from dependence on suppliers for battery procurement, the following stand out:

Volvo

Volvo will begin construction of a battery factory in Sweden next year, resulting from its partnership with Northvolt. Northvolt, in turn, already supplies similar components to BMW, Volkswagen, and Scania, another Swedish company.

GM

GM formed a joint venture with LG’s subsidiary responsible for producing automotive batteries in order to establish a factory in Ohio, United States. The investment dedicated to the new plant is US$ 2.3 billion, and it is expected to start operations in 2023. This will be the first unit of its kind that the automaker is willing to implement.

Tesla

In 2016, Tesla partnered with its main battery supplier, Panasonic, to build the so-called Gigafactory, located in Nevada, United States. The investment for its construction was US$ 5 billion, and the factory currently produces up to 1.3 million batteries per year.

Stellantis

Stellantis – formed after the merger of Fiat Chrysler and PSA – announced last year the construction of an automotive battery factory in Ontario, Canada, also in partnership with multinational LG. The unit, which is expected to be inaugurated in 2024, will equip 2.5 million electric vehicles per year. The cost will be US$ 4.1 billion.

Toyota

Toyota decided to set up its battery production line in North Carolina, United States. The factory’s construction was announced last year, and it is expected to supply up to 1.2 million electric vehicles each year. The inauguration is scheduled for 2025, while the investment dedicated to the initiative will be US$ 1.29 billion.

$110 Billion Investment to Be Made by Electric Vehicle Manufacturers for Battery Production; Many Companies Will Supply Their Own Demand

Brands Like Volvo, Tesla, and Toyota Are Investing Billions in Own Battery Production to Supply Their Electric Vehicles

Volvo Will Build a Factory with a Production Capacity of 500,000 Batteries Per Year

Which Automakers Are Focused on Battery Production?

Volvo

GM

Tesla

Stellantis

Toyota

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$110 Billion Investment to Be Made by Electric Vehicle Manufacturers for Battery Production; Many Companies Will Supply Their Own Demand

Brands Like Volvo, Tesla, and Toyota Are Investing Billions in Own Battery Production to Supply Their Electric Vehicles

Volvo Will Build a Factory with a Production Capacity of 500,000 Batteries Per Year

Which Automakers Are Focused on Battery Production?

Volvo

GM

Tesla

Stellantis

Toyota

At just 14 years old, a boy creates a system without energy, using steel pipes buried in the ground, that irrigates seedlings with moisture from the air, to combat the water scarcity threatening reforestation in northern China.

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At over 8,800 meters above sea level, the summit of Mount Everest is made up of rocks that originated at the bottom of an ocean about 500 million years ago and were pushed to the highest point on Earth by the collision of tectonic plates.

A couple builds a system to bring water from the spring to their land, climbs a hill with materials on their backs, and creates a simple, cheap, and sustainable solution to ensure their own water supply.

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