Who will marry with VW and GM?

Companies that control rechargeable batteries also control the new-generation automobile market – Volkswagen and GM play crucial roles in shaping industry’s power balance  (Electro To Auto Forum)

Automobile manufacturers and battery manufacturers are waging fierce competitions for the development of high-performance rechargeable batteries. The rechargeable batteries are the most crucial components determining the basic performance of automobiles. Take an EV, the energy density of rechargeable batteries determines the driving distance of the vehicle, and the cost of the batteries represents a major part of the overall cost of an automobile. It’s not an exaggeration to say that companies controlling rechargeable batteries also control the new-generation automobile market.

　With this background, corporate alliances between automobile manufacturers and battery manufacturers are becoming active. Relationships between automobile manufacturers and battery manufacturers can be classified into the following three kinds: firstly, a pure relationship of batteries’ supply and demand; secondly, a partnership for the joint development of batteries; and thirdly, a partnership including the foundation of corporate venture company. Among them, founding corporate venture company is most important to be getting on a competitive edge. For automobile manufacturers, batteries are the core components that determine the performance of automobiles. Automobile manufacturers will avoid being totally dependant on outside suppliers for them. It will be a natural course that automobile manufacturers tie up with particular battery manufacturer(s) in a bid to secure battery technologies and control both technology development and manufacturing operations. Toyota’s alliance with Panasonic well supports this concept.  Read more…