James Alexander Michie: The business of lithium-ion batteries will benefit in the long term | Bloomberg
Author: James Alexander Michie
For some, it is a fact that electric car manufacturers will take about six months to sell the next million cars, which previously took more than seven years to sell 4 million electric vehicles. It seems that the demand for electric vehicles is increasing and at the same time creating opportunities along the supply chain of batteries since the same growing demand is transforming the business of lithium-ion batteries in such a way that It expects that more power packages will be installed in electric vehicles this year than in consumer electronics.
A study by Sanford C. Bernstein & Co. has emerged, in which it has been found that the market value of the batteries used in electric cars, electric buses, and energy storage would be influenced and should be multiplied in the same way. by approximately 10 times to a potential of $ 500 billion by 2050. It is important to mention that currently many of the largest battery producers are not currently benefiting because they are investing billions of dollars in order to aggregate capacity. manufacture and form global partnerships with car manufacturers.
For his part, with respect to this issue, the managing director of Cairn Energy Research Advisor, Sam Jaffe, said: “Everyone has to increase the scale in everything: from mines to chemical products and battery manufacturers”.
Likewise, according to BlackRock Inc., companies in the sector have the potential to amass significant gains in demand over the next two decades. For its part, the manager based in New York opened last month a fund that is oriented in those companies that are prepared to benefit from the change to electric vehicles and self-employed, both suppliers of raw materials as manufacturers of components and technology providers.
According to Akira Fukuda, who is a senior executive “The arrival of electric vehicles promises a more dramatic remodeling of the market, which led Asahi Kasei to consider expansions in Europe and China and seek almost a doubling of its production by 2020”, he added. “There is still room for the growth of the parts manufacturers”.