Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Factbox-Electric-vehicle batteries: major players and their expansion plans

Stock MarketsOct 05, 2021 06:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea, February 3, 2017. REUTERS/Kim Hong-Ji/Files

By Heekyong Yang

SEOUL (Reuters) - The global auto industry's shift to electric vehicles (EVs) has spurred an expansion race among battery makers, and caused a growing a skills shortage. See main story:

Global sales of EVs, estimated at 2.5 million vehicles in 2020, is forecast to grow more than 12-fold to 31.1 million by 2030 and account for nearly a third of new vehicle sales, according to consulting firm Deloitte.

Here are major players' expansion plans in key EV markets of China, the United States and Europe.

CATL

As of end-June, the Chinese company has annual battery production capacity of 65.45 Gigawatt hours (GWh), and has an additional 92.5 GWh of capacity under construction.

The global industry leader by market share https://graphics.reuters.com/SOUTHKKOREA-BATTERIES/TALENT/lbvgngxzmpq/chart.png, its clients include Volkswagen (DE:VOWG_p), General Motors (NYSE:GM), BMW >BMWG.DE> and Daimler (OTC:DDAIF) as well as Chinese auto makers.

The company announced a plan in August to set up a production base in Shanghai, a move that will put it close to Tesla (NASDAQ:TSLA) Inc's Chinese production base.

LG ENERGY SOLUTION (LGES)

The South Korean leader expects its production capacity to reach 155 GWh by the end of this year and plans to raise that to 430 GWh by 2025 - which could power about 7.2 million EVs.

It plans to invest more than $4.5 billion in its U.S. battery production business through 2025. The plans include two new plants, jointly built with GM in Ohio and Tennessee, which would allow LGES to manufacture a total of 70 GWh of batteries in the United States by 2024.

LGES already has a factory in Michigan with annual production capacity of 5 GWh.

In China, where the company makes cylindrical battery cells for Tesla, it has invested about 5.7 trillion won ($4.8 billion) and plans to invest another 1.5 trillion won.

It has invested about 6.8 trillion won in Poland since 2016 to secure an annual production capacity of 70 GWh and plans to make another 2.5 trillion won investment.

In July, LGES and Hyundai Motor Group said they would invest $1.1 billion to jointly set up a EV battery cell plant in Indonesia.

PANASONIC

The Japanese company manufacturers cylindrical NMA (Nickel-Manganese-Aluminum) batteries in the United States at a plant in Nevada and in facilities in Japan. Nearly all goes to Tesla.

It does not disclose its manufacturing capacity, but in May said it was aiming to expand the 35 GWh Nevada facility because of increased demand from Tesla. The Nevada plant, built at a cost of $1.6 billion, was opened in 2014.

Panasonic (OTC:PCRFY) plans to begin a test line in Japan this year to make a new cylindrical battery designed by Tesla to halve battery costs. It also has a joint venture with Toyota Motor (NYSE:TM) established in February, Prime Planet Energy & Solutions, to develop prismatic batteries.

The company has said it is considering building an auto battery plant in Norway to expand into Europe, but has yet to give details.

SK ON

SK On has a combined global annual production capacity of 40 GWh - 27 GWh in China, 7.5 GWh in Hungary and the rest from South Korea.

It plans to boost that more than five-fold to 220 GWh by 2025, with the expansion primarily focused on the U.S. market.

SK On is building two EV battery plants in Georgia with a combined annual production capacity of 21.5 GWh that will begin production from early 2022.

With partner Ford Motor (NYSE:F) Co, it has a 10.2 trillion won investment plan to build three separate battery plants in the United States with a combined annual capacity of 129 GWh of batteries, enough to power about 2.2 million EVs.

SAMSUNG SDI

The affiliate of Samsung Electronics (OTC:SSNLF) Co Ltd has EV battery cell plants in Hungary, China and South Korea.

It does not disclose breakdowns of its investments or production capacity.

In July, Reuters reported that the company, whose customers include Ford and BMW, may build a battery cell plant in the United States. Samsung (KS:005930) SDI has been in talks to supply batteries manufactured at a potential U.S. factory with EV makers including Stellantis and Rivian, which is backed by Amazon (NASDAQ:AMZN) and Ford.

($1 = 1,182.8700 won)

Factbox-Electric-vehicle batteries: major players and their expansion plans
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email