More and more electric cars are on our roads. The supply of electric batteries becomes an increasingly important cog in the wheel for automotive players. Jim Rowan, new boss of Volvo Cars, has declared that the scarcity of batteries could become a real problem for the sector.
More and more electric vehicles on our roads
In March 2022, 21.4% of cars sold in France were electric or plug-in hybrids. While overall sales are down, the big winners again this month have been plug-in electric vehicles which account for. The share of 100% electric vehicles was over this same period of 13.5% and 7.9% for rechargeable hybrid vehicles. Electric vehicles are taking over from diesel. The share of diesel vehicles fell to 14% in March this year from 31% in March 2020.
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This change in usage has consequences for supply chains. As the number of electric vehicles on our roads increases, battery logistics is becoming an increasingly important and competitive cog in the automotive sector. The boss of Volvo Cars recently spoke on the subject. The group’s strategy is now the same as the major manufacturers who have opted for electricity for several years, such as Volkswagen, General Motors, Ford, and even Tesla.
Others also plan to launch: Honda plans to launch 30 electric models by 2030. Over the next ten years, Honda plans to spend 35 billion euros for the electrification of its fleet. The other manufacturer to develop a real electrification strategy is the Renault-Nissan-Mitsubishi Alliance: 35 new electric vehicles for 2030. With this new roadmap, the Alliance intends to weigh heavily in the field of electric vehicles in the face of the Volkswagen Group and Stellantis.
A future shortage for electric batteries?
Jim Rowan, new boss and president of Volvo Cars, believes that “the scarcity of battery supply will become a major problem for the sector”. He specifies that his company has precisely made investments which should help him better understand a potential shortage: “Recently we made a significant investment with Northvolt, so we control our own battery supply as we move forward”.
Volvo Cars has promised to sell 100% electric cars by 2030. Such a strategy requires it to have a constant and secure supply of batteries for its vehicles. The Swedish manufacturer wants to have perfect control of its electric motors in the future. In February 2022, Volvo Cars and Northvolt said they would build a battery manufacturing plant in Gothenburgin Sweden, whose construction is expected to begin in 2023. This plant is expected to have a potential annual production capacity of up to 50 gigawatts.