It is one of the defining competitions of our age: The countries that can make batteries for electric cars will reap decades of economic and geopolitical advantages. The only winner so far is China.
The biggest of them all is the Contemporary Amperex Technology Co Limited, better known as CATL. In 2022, CATL made 34 per cent of all the world’s electric car batteries.
The Trade and Cooperation Agreement also includes rules of origin requirements for batteries used in electric vehicles, including battery packs and battery cells. 291 From 1st January 2024, only 50% of the value of battery cells can be sourced from outside the UK and/or the EU.
2. Lithium-ion batteries are the dominant battery chemistry used in electric vehicles. There are different types of lithium-ion battery chemistries. The two main types are nickel manganese and cobalt (NMC) and lithium iron phosphate (LFP).
Thus, for a whole host of reasons, automakers typically source their batteries from external manufacturers. Car companies didn’t have the knowledge in house to make their own cells, nor did they have the factories to produce them en masse.
Automotive manufacturing, especially for electric cars and vans, is expected to make up the majority of demand for batteries. By 2030, for example, the UK’s automotive industry will need 90GWh of battery manufacturing capacity to supply electric vehicles built in this country.
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