By 2030, global sales of electric vehicle batteries are anticipated to exceed $60 billion. According to David Meyer’s article from Fortune on April 7, 2019. Germany is interested in a piece of the market that Asia mostly controls. On November 13, 2018, the first indication that Germany was embracing the industry’s future appeared. At that time, a $1.12 (€1.00) billion fund to boost domestic manufacturing was announced.
Is There a Better Way Than This for Germany to Seize the Future?
No, according to the German government, this is the only option. It explains that 50% of the value added would be lost. “If the USA developed the digital platform for autonomous driving.
Additionally, if the battery for future autos comes from Asia.
Germany believes that maintaining value added requires the help of the state. The University of Duisburg disagrees. They have experience working for automakers, including Opel and Porsche. His background gives him the right to refute the notion that Germany will manufacture all EV batteries in the future. Strong statements indeed, but perhaps we might consider the justification offered by Prof. Ferdinand Edenhofer. According to him, the manufacturing process they intend to invest $1 billion in does not provide value. The materials themselves hold worth.
David Meyer of Fortune believes that Germany’s BASF is headed in the right direction. As part of its aim, it will collaborate with the Russian miner Nornickel to erect cathode materials mill in Sweden. Shigeki Terashi from Toyota undoubtedly concurs. “Whoever conquers batteries will conquer the electrification of autos,” he has declared. The major issue with trying to catch up to Asian battery producers is that the production process requires a significant initial expenditure. Once you are up and going, though, it’s rather affordable to duplicate that procedure.
