Updates from Siemens

Digitalize battery manufacturing for a greener future with electric vehicles

By Vincent Guo – The electrification of automobiles is gaining momentum globally as many countries have laid out plans to prohibit the sales of internal combustion engine (ICE) cars. The closing deadline is 2025 for the Netherlands and Norway, with Germany and India to be the next down the line in 2030, followed by UK and France in 2040. Other major economies in the world provide aggressive initiatives to push the electric vehicle (EV) to the market. For example, USA, China, Norway, Denmark, and South Korea have been implementing cash subsidiaries to EV buyers over $10,000 per vehicle, with Denmark and South Korea paying the consumer almost 20,000 Euro for each car purchased.

These incentive plans, however, also indicate that the price of EV is still high comparing to traditional cars. Independent research shows that the cost of the electrical powertrain is roughly 50% of the EV while, while the cost of the powertrain for ICE cars is only 16%. While it is largely true that the components of a car, whether it is an EV or ICE car, are largely similar except for the powertrain, the source of the difference in total cost is obviously the powertrain. The most expensive component is the battery pack, which accounts for roughly half of the powertrain and a quarter of the entire car.

Fortunately, the cost of the battery is going down steadily in the past 10 years. It is about to hit the point that the total cost of an EV is competitive to an ICE car and the point is about 125-150 USD/kWh.

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As a result, battery manufacturing capacity has been ramping up quickly. Tesla is leading the way by its Gigafacotry in Nevada with target annual capacity of 35 GWh. Yet the race is tight as the battery manufacturing in Asia is catching up. CATL of China had recently announced a plan to boost its capacity in Germany to 100 GWh. more>

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