As the demand for electrification intensifies, the EV market and industry are evolving alongside. EV makers are focusing on expanding their offerings while investing in technology and adapting their supply chains to support this shift. This dynamic evolution involves the enhancement of battery specs and charging infrastructure alongside strategic partnerships and new manufacturing approaches to address emerging challenges. As OEMs adapt to these changes, they are continually innovating and scaling their solutions to meet growing consumer expectations and maintain momentum in a rapidly changing market.
The EV Market
In 2023, EV sales approached 14 million, with 95% of these sales concentrated in China, Europe, and the US. At the same time, the total number of EVs on the road reached 40 million, marking a significant increase from previous years. Additionally, sales surged by 3.5 million units compared to 2022, reflecting a 35% year-on-year growth and more than a sixfold increase from 2018. Overall, EVs comprised approximately 18% of all cars sold in 2023, up from 14% the previous year.
The momentum continued into the first quarter of 2024, with sales surpassing 3 million units, a 25% increase over the same period in 2023. China led the charge with nearly 1.9 million electric cars sold in the first quarter, up almost 35% from the previous year, and Europe saw a year-on-year increase of over 5%, while the United States experienced a 15% rise, reaching around 350,000 units. With the EV market share projected to hit 25% in 2024, the industry is poised for continued growth. As the market evolves, stakeholders are focused on addressing challenges and refining strategies to enhance the future of electric mobility.
Technological Advancements
Battery Technology
One of the most important areas of investment in the EV sector is battery technology. Innovations in battery chemistry are needed to revolutionize the industry by offering higher energy density, faster charging times, and enhanced safety. One battery chemistry that’s capturing more attention is solid-state. Indeed, earlier this year, Toyota unveiled a solid-state EV battery with a 745-mile range, and in October, the Japanese OEM secured a deal to mass-produce solid-state batteries with a 932-mile range. Therefore, EV manufacturers are investing in research and development to overcome the limitations of current lithium-ion batteries, aiming for longer ranges and lower costs.
Charging Infrastructure
In parallel, as EV adoption grows, the demand for charging infrastructure is increasing. Investments are flowing into the development of ultra-fast charging networks, with companies and governments working to reduce charging times and improve accessibility. For instance, automakers are looking into the potential of battery swapping in addition to charging stations. Indeed, Stellantis made an agreement with Ample, a company that has created modular battery-swapping technology capable of fully charging any EV in just a few minutes.
Furthermore, it’s expected that more EV makers will adopt Tesla’s charging plug, as it goes towards being the industry standard in the US. As such, Ford, General Motors and Honda are among those who have announced plans to adopt the charging ports used by Tesla for its EVs. At the same time, Tesla has been rapidly expanding its Supercharger network and has started providing adapters at its stations, enabling drivers of other EVs to access these chargers.
Supply Chain Changes
New Factories
As OEMs seek to increase EV production, they are heavily investing in new factories to meet growing demand and advance their electrification strategies. However, some of these plans have been adjusted to better align with evolving goals, such as optimizing costs, addressing supply chain challenges, and responding to shifts in market conditions. Indeed, Ford initially planned a $3.5 billion investment in a new factory, but in late 2023, the company announced it would scale back these plans, trimming at least $1 billion from the original budget. The site in Marshall, originally intended to cover 950 acres, was reduced to just over 500 acres, and the production facility itself shrank from 2.3 million square feet to 1.2 million square feet. This adjustment reflects nearly a 50% reduction in the planned size of the factory, which will produce LFP batteries, a critical component for affordable EVs and Ford’s goal of achieving an 8% return on its EV portfolio.
Partnerships
The complexity of EV manufacturing has led to increased focus on supply chain integration, with OEMs investing in securing the supply of critical materials such as lithium, cobalt, and nickel, which are essential for battery production. With supply chain disruptions and battery metal price fluctuations, which can be due to factors ranging from geopolitical conflicts to climate change, there is some uncertainty in the industry, impacting production costs and strategic planning. Indeed, last year, Ford announced plans to collaborate with Chinese battery supplier, CATL, on a new battery plant for EVs in Michigan, to mitigate production risks by expanding capacity and developing the ability to scale technology within the US, where Ford has control. Consequently, vertical integration and strategic partnerships with mining companies are becoming common strategies to mitigate supply chain risks.
Similarly, in 2023, Stellantis announced a $155 million investment in Argentina to meet its projected copper demand. Additionally, Volkswagen, Glencore, and Chrysler each committed $100 million to a Special Purpose Acquisition Company focused on nickel and copper assets, in a $1 billion deal supported by several global investment banks. In 2024, Tesla, along with Korean battery manufacturers LG and SK, engaged with Chilean government agencies to secure lithium supplies, primarily targeting the US market with the backing of IRA tax credits.
Revolutionizing EVs with Addionics
As the EV industry seeks to improve battery performance and affordability, Addionics’ 3D Current Collectors offer a transformative solution. The 3D architecture enables a bigger amount of active materials to be loaded, reducing the overall quantity needed and lowering battery costs. This reduction in material usage makes EVs more affordable while promoting their broader adoption. Moreover, 3D Current Collectors enhance battery stability and safety, while the drop-in solution seamlessly integrates with any manufacturing line, supporting both existing and emerging battery chemistries.
Find out more about Addionics’ technology or contact us for collaboration opportunities.
