Korea’s SK Innovation expects the US auto industry to face battery supply shortages by 2025 due to the length of time it takes to build production facilities.
see photosSK says shortages will last by 2025 due to longer run times for production facilities to be built
Ford Motor Co.’s battery joint venture partner, Korea’s SK Innovation, expects the US auto industry to face battery supply shortages by 2025 as production facilities are headed for a longer period of time to build, SK’s top officials told Reuters. SK Innovation’s battery unit, SK ON, is also looking at developing a lithium iron phosphate battery (LFP), which despite its shorter driving range has an advantage in cost and thermal stability, said Kim Joon, SK Innovation’s chief executive and G. Dong-seob, CEO SK On said.
Tight supplies of batteries – key to electric vehicles – pose a challenge for the Biden administration, which aims to boost EV production and reduce the country’s reliance on imports of battery cells, components and materials. Referring to the time required for supply, Kim said, “Current US battery capacity is too low to meet demand. It takes 30 months for a factory to be built to meet demand, and I think That the battery shortage will continue until at least 2025.” Homemade battery cells including factory site selection, manufacturing and product testing.
Conversely, China is expected to have a higher supply of batteries, and Europe’s supply will be in line with demand, he said. Ford and SK plan to invest $4.45 billion to build three new factories in the United States, with production beginning in 2025. With the deal for the plants, which will be the largest in the United States, SK said it has an industry-leading order of 1,600 gigawatt hours, enough for 27 million vehicles. SK Innovation spun off its battery business into its wholly owned entity, SK ON, with effect from 1 October.
Ford and SK plan to invest $4.45 billion each to build three new factories in the United States, with production set to begin in 2025
Kim said Ford Motor CEO Jim Farley told him that Ford’s electrification destiny “is in your hands.” He said it is very unlikely that some automakers will succeed in their efforts to build SAILs on their own without partnering with SAIL makers who have experience in mass production. “Cell manufacturing is not that easy. It has to go through a lot of trial and error,” Kim said. Two officials said SK is looking at developing LFP batteries for specific applications such as low-cost vehicles. “There is interest in LFP technology from automakers,” said SK On Kee Ji.
Ford and Volkswagen are diversifying LFP technology, a mainstay of Chinese battery makers led by Tesla. Following a series of vehicles that have been linked to nickel-based batteries produced by LG and used in GM’s Bolt cars, the lower-grade, inexpensive LFP battery is also gaining attention for its thermal stability. SK, which has no record of fire accidents, is planning to manufacture high-nickel, pouch-type batteries in its joint venture with Ford. SK On is considering other joint ventures and financing options, but won’t rush to go public, Kim said.
0 notes
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
for the latest auto news And ReviewFollow carandbike.com Twitter, Facebookand subscribe to our youtube Channel.
.