Billion-Dollar Investments in Batteries and Why You Should Care
With population and vehicle production numbers going up, transportation has emerged as the fastest-rising leader of carbon dioxide emissions. Even with the covid scourge, economies across the globe are getting back to normal, and inherently, local and international travel numbers are also getting back to high figures. With most vehicles using an internal combustion engine (ICE), there is now an increased need for zero-emission (electric) vehicles to cut down on transport emissions, which now stand at a quarter of global emissions.
The increased need for electric vehicles has been recognized by public and private entities around the world. The majority of these electric vehicles including the MAX E M3, run on Lithium-Ion Batteries. A major point of focus in the development of electric vehicles has been how to keep the vehicles on the road for much longer, making them significantly more efficient than ICE vehicles. This has led to major investments into developing and producing better longer-lasting batteries.
As the electric vehicle market has grown in size, the importance of uninterrupted usage before recharging has grown as well. Also, the need for batteries to shrink in size while simultaneously becoming more energy efficient has increased.
Unfortunately, the technology for achieving this has been limited. However, if this feat can finally be achieved, it would be a welcome development for organizations and individuals alike. Batteries would become more efficient, smaller, and less expensive to produce.
Hence the huge investments in batteries
Investments Into Batteries
South Korea based LG Chem, has put aside $5.2 billion to build its battery materials business over the next four years.
Anode materials, separation membranes, cathode binders, and other battery components will be manufactured using the funding. LG Chem’s new direction also includes plans to build a massive cathode factory in Gumi, South Korea, that would increase the industrial giant’s anode manufacturing capacity from 40,000 tons to almost 260,000 tons by 2026. LG Chem had earlier announced in 2019, a $424 million investment in the factory.
Toyota will invest $13.6 billion in battery technology over the next decade, including $9 billion in production, as it strives to electrify its car fleet. By 2025, it is expected to have ten battery manufacturing lines, with a total of roughly 70 spanning an undisclosed number of plants across the world. According to Masahiko Maeda, the business’s chief technical officer, the company might eventually create up to 200GWh of batteries.
Toyota’s pledges are comparable to those made by others in the automotive sector. Volkswagen wants to create about 240GWh of batteries in Europe alone by 2030, while Ford plans to produce 240GWh globally by 2030, including 140GWh in North America.
Nissan announced that it will invest $17.6 billion over the next five years in building a more affordable and powerful battery to expand its electric car fleet.
Makoto Uchida, the company’s CEO, stated that 15 new electric cars will be ready by fiscal 2030. Nissan Motor Co. is aiming for a 50 % “electrification” of its model portfolio as part of its “Nissan Ambition 2030” long-term goal, according to Uchida. Other than electric cars, electrified automobiles include hybrids and other ecologically friendly versions.
Northvolt, a Swedish lithium-ion battery manufacturer, also revealed last autumn that it had obtained $600 million in equity to invest in capacity growth, R&D, and large-scale recycling.
Institutional investors Baillie Gifford, Baron Capital Group, Bridford Investments Limited, Norrsken VC & PCS Holding, as well as Cristina Stenbeck and Daniel Ek, participated in the capital raise. Goldman Sachs GS IMAS Foundation, Scania, and Volkswagen AG, all current Northvolt shareholders, also joined the group.
What This Means For African Innovators And Consumers
MAX is one of the first African innovators to produce an electric commercial two-wheeler (The M3) with a 5.47 kwh battery, capable of a 120–160km Range, and an 85km/h, Top Speed. This was largely achieved due to MAX’s connection with globally acclaimed consultants, engineers, and scientists.
The great thing about technology is that once it is developed, it only needs a medium to be made available to any part of the world. MAX prides itself on being a conduit for bringing world-class electric vehicle technology to Africa. With a keen ear to the ground, MAX is keeping tabs on developments from around the world and is ready to bring such developments into the African space.
“In the next 50 years, mobility will be 100 percent shared, on-demand, autonomous, and powered by batteries, fuel cells, and hydrogen” _ Adetayo Bamiuro, CEO MAX
These developments would eventually mean that new vehicles can keep riders on the road for even much longer, before needing to replace or recharge batteries. The future of the electric vehicle ecosystem is certainly one of great excitement and anticipation.
