Electric car battery sales are set to reach $60 billion worldwide by 2030. This is according to David Meyer writing in Fortune on 7 April 2019. Germany wants a slice of that cake Asia overwhelmingly dominates. The first sign of Germany seizing the future in the industry was on November 13, 2018. That was when it announced a $1.12 (€1.00) billion fund to supercharge home production.
Is There an Alternative to Germany Seizing the Future Like This?
The German government says no, this is the only way. It explains it would lose 50% of value added “If the digital platform for autonomous driving came from the USA. And moreover if the battery was from Asia for the cars of the future.”
Germany sees state assistance as the key to retaining value added. However, Ferdinand Dudenhöffer, professor of automotive economics at the University of Duisberg-Essen does not agree. He is a veteran of car firms such as Opel and Porsche. This pedigree entitles him to challenge the idea of Germany seizing the future of EV batteries through manufacturing.
This Idea is Stupid, It’s Crazy Prof Dudenhöffer Insists
Strong words indeed but perhaps we should listen to Prof Ferdinand Dudenhöffer’s reasoning. He believes “The value does not exist in the manufacturing process they want to spend €1 billion on. The value is in the materials.”
Fortune’s David Meyer thinks Germany’s BASF is moving in the right direction. Its strategy includes building a cathode materials factory in Sweden in cooperation with Russian miner Nornickel. Toyota’s Shigeki Terashi certainly agrees. He has said “The one who conquers batteries will conquer the electrification of cars.”
David Meyer was on point when he remarked “The biggest problem with trying to play catch-up with the Asian battery manufacturers is that it takes a lot of investment to get started with the manufacturing process. However, once you’re up-and-running, replicating that process is relatively cheap.”
Related
Artificial Intelligence Studying New Materials
Electric Car Battery Materials Become Scarce
Preview Image: Electric Cars Per Head of Population
