Electric Car market attracts new suppliers
2023.01.23 03:25
Electric Car market attracts new suppliers
By Tiffany Smith
Budrigannews.com – New suppliers have a golden opportunity to secure contracts for everything from battery packs to motors and inverters because the global auto industry has committed $1.2 trillion to the development of electric vehicles (EVs).
EV contracts have been chasing startups that specialize in batteries and coatings to protect EV parts and suppliers that have traditionally focused on niche motorsports or Formula One (F1) racing. High-volume models can continue to bring in a lot of money for years because car manufacturers build platforms that last a decade.
The next generation of electric vehicles is expected to arrive in 2025, and numerous automakers have sought assistance in filling in knowledge gaps, opening up a window of opportunity for new suppliers.
“Everyone is asking, ‘how do you make these things work properly?'” “We’ve gone back to the days of Henry Ford.” says Nick Fry, CEO of McLaren Applied, an F1 engineering and technology company.
“That’s a huge chance for businesses like ours.”
In 2021, private equity firm Greybull Capital purchased McLaren Applied, which adapted an effective F1 racing inverter for EVs. The flow of electricity to and from the battery pack is controlled by an inverter.
The silicon carbide IPG5 inverter can increase an electric vehicle’s range by over 7% and only weighs 5.5 kg (12 lb). According to Fry, McLaren Applied is collaborating with approximately 20 automakers and suppliers. Beginning in January 2025, the inverter will be included in high-volume luxury EV models.
Most of the time, mass-market carmakers would rather develop EV components in-house and own the technology. They are wary of over-relying on suppliers after years of pandemic-related parts shortages.
Tim Slatter, Ford’s head in Britain, stated, “We just can’t afford to be reliant on third parties making those investments for us.”
To stay ahead in an industry that is changing quickly, traditional suppliers are also investing heavily in EVs and other technologies, such as the German titans Bosch and Continental.
However, smaller businesses assert that there are still opportunities, particularly with low-volume manufacturers who are unable to afford significant investments in EVs or luxury and high-performance automobile manufacturers seeking an edge.
An undisclosed German automaker will use a Rimac battery system in a high-performance model starting this year, with more signed up, according to Croatia’s Rimac, an electric hypercar manufacturer that also supplies battery systems and powertrain components to other automakers. Rimac is part-owned by Germany’s Porsche AG.
CEO Mate Rimac states, “We need to be 20%, 30% better than what they can do before they work with us.” If they can make a battery pack with 100 kilowatt hours, we must make a pack with 130 kilowatts that is the same size and costs the same.”
Actnano, a supplier based in Cambridge, Massachusetts, has long worked with Tesla (NASDAQ:), a pioneer in electric vehicles. Actnano’s business has expanded to advanced driver-assistance systems (ADAS) and other automakers like Volvo, Ford, BMW, and Porsche thanks to the development of a coating that prevents condensation from forming on EV components.
Instead of using a wire harness to group and guide cables in a vehicle, the startup CelLink, based in California, has created an entirely automated, flat, and simple-to-install “flex harness.” While stating that CelLink’s harnesses had been installed in approximately one million EVs, CEO Kevin Coakley refused to name any specific clients. That scale is only Tesla’s.
According to Coakley, CelLink was collaborating on battery wiring with European and American automakers as well as a European battery manufacturer.
Others concentrate on low-volume manufacturers, such as the UK startup Ionetic, which designs battery packs that are too costly for smaller businesses to manufacture on their own.
CEO James Eaton (NYSE:) states, “Currently it costs just too much to electrify, which is why you see some manufacturers delaying their electrification launch.” said.
Swindon Powertrain has been making powerful racing engines since 1971. However, it now also makes electric powertrains, battery packs, and e-axles and has around 20 customers, including car manufacturers and an eVTOL aircraft manufacturer.
Raphael Caille, the managing director, stated, “I realized if we don’t embrace this, we’re going to end up working for museums.”
However, there may be less time left.
According to Mate Rimac, major automakers have rushed to introduce EVs over the past three years and have largely implemented strategies.
He stated, “I’m not sure how long the window of opportunity will remain open for those who haven’t signed projects.”
