By John Smith
The rise of affordable electric vehicles in China has had a huge impact on global automakers.
At the Guangzhou Auto Show in November, amid the cries of “joint ventures regaining attention” and “joint ventures are not backward representatives”, it is not difficult to feel the pressure from overseas automakers.
It can be said that Chinese cars were cheap in the past mainly because the quality was not that high; Chinese cars are cheap now mainly because the supply chain is strong.
So, what’s next for overseas automakers without a complete supply chain?
Andy Palmer, chairman of Brill Power, a British startup that specializes in developing battery management system software for electric vehicles, said: “All car manufacturers must now reduce the cost of electric vehicles and develop products that are user-friendly enough, otherwise they will lose to Chinese manufacturers.”
In fact, the recent slowdown in electric vehicle sales growth in European and American countries has also made some companies that are determined to transform but have to face huge transformation cost pressure feel nervous. Therefore, the urgency of reducing costs has never been more important.
When Vincent Pluvinage, CEO of OneD Battery Sciences, a California-based company that counts General Motors as a customer and investor, recently visited European automakers, he began each meeting with the same slogan: “Reducing costs is more important than anything else right now.” people.
Renault said last month it planned to reduce the cost of its electric cars by 40% to bring them into the same price range as internal combustion engine models.
Stellantis Group is building a European factory with CATL to make cheaper lithium iron phosphate batteries. Recently, the Citroën brand under the group also launched the e-C3 electric SUV, with a starting price of 23,300 euros.
Volkswagen and Tesla are also jointly developing a 25,000-euro electric car.
Various solutions have also emerged to help car companies reduce costs.
Andy Palmer, also the former CEO of British supercar manufacturer Aston Martin, said Brill Power’s products can increase the range of electric vehicles by 60%, allowing them to use smaller and cheaper batteries.
OneD added silicon nanowires to the graphite battery anode material to extend range and shorten charging times, saving $281 compared to using graphite alone in 100 kilowatt-hour (kWh) electric vehicle batteries. Batteries made of this material can reduce the weight of batteries with the same mileage by 20%.
German company Veekim has developed a motor that uses ferrite, or iron powder, instead of rare earths, which is cheaper than motors with rare earth elements. Five automakers are currently considering using this motor to develop affordable electric vehicles.
Due to China’s advantages in mineral resources and processing, overseas automakers have been “de-rare earth” in the development of electric vehicles. A motor costs about 500 euros, and Veekim’s motor can cost 400 euros.
US battery company Our Next Energy (ONE) is developing a cheaper ‘Ares’ battery pack that it plans to offer the same range at half the price, with kits available for customers including BMW that can add further battery life. The company says it can reduce the cost of power batteries from today’s $130/kWh to $75/kWh.
Not only car companies and “three electricity” suppliers, chip manufacturer NXP is also cooperating with car manufacturers to reduce the number of electronic control units in cars through domain controllers to reduce costs.
The will to reduce costs has even been passed on to more upstream material suppliers. For example, the porous aluminum electrode battery material developed by Israeli startup Addionics can reduce the use of copper by 60% while achieving the same performance. New material electrodes can increase the battery life of electric vehicles by 30% at the same cost, which means they can be cheaper with the same battery life.
Biton, the company’s CEO, said: “The request we hear most from OEM customers is not to increase battery life, but to reduce costs.”
Last week, the new electric vehicle regulations proposed by the U.S. government have begun to limit the “inclusive amount” of federal subsidies for electric vehicles – any parts related to Chinese companies/governments, established in China or imported from China, as long as they meet a certain proportion, you cannot receive subsidies in the United States.
Without a mature supply chain system, Western automakers’ efforts to reduce costs for electric vehicles are as varied as finding a needle in a haystack.
On the other side of China, car companies have completely subverted the rhythm of “seven years of replacement, three-year mid-term refresh”. It is no longer a problem to launch a refresh every year, and even new models are eager to launch new models every year.
In mid-to-late December, the Chinese market will also usher in a number of new electric vehicles with products that can overwhelm the traditional powerhouses. BYD Song L, iCar 03, Star Era ES, Weilai EE9, Jikrypton 007, Wenjie M9, etc. In front of them, the Volkswagen ID.7 and the new Ford Electric Horse were somewhat deprived of their halo.
As an important pillar industry of the national economy, the leading and supporting roles of the global automobile industry are quietly changing.
In the future, when Chinese cars begin to convert product power into brand power and achieve profit growth, the price will be higher than that of foreign cars, and it will no longer be just a few cases.
