Electric Car Production Leads To Global Battery Shortage

Electric Car Production Leads To Global Battery Shortage

With electric vehicles catching on with mainstream consumers globally, an unexpected side effect is being encountered which has slowed their production. In recent months GM, Hyundai, and BMW have all reported that they're encountering issues with production stemming from this. Here at Jim Keras Collision Center, we're watching the situation closely as we have a vested interest in the growth of EV's. Even from Memphis in TN we can see trouble brewing on the horizon if the supply of batteries doesn't start matching the demand. After all, it would be bad for everyone if this promising technology were to lose support due to a supply issue.

Surprisingly manufacturers like Nissan and Tesla don't seem to be having a similar issue. This is most likely due to their early entry into the EV market. They had the ability to closely partner with battery makers and form close partnerships in which each can predict the other's business needs. Making such close ties with another business takes time. 

Investing in their own battery factories may seem like a perfect solution, but with the rapid advances in battery technology along with composition and formula it becomes a little riskier. As of now, all battery manufacturers use similar materials and processes. This may not be true in the near future, though. 

It may be that newer entrants in the electric vehicle business could have to provide more money up front than they expected to ensure their battery needs are met. In the meantime, larger players only get larger as they have a supply that exceeds demand. Moreover, giants like Tesla are being constantly inundated with samples and prototypes from battery manufacturers that could provide a huge business edge. Having the first crack at new, innovative technologies could be the nail in the coffin for their competition.

Written By: Todd Hendrickson
Source: cleantechnica.com