Cell manufacturing investments to reach US$9bn by 2030

Financial services provider Icra has said that investments in cell manufacturing will grow to US$9bn by 2030, as cells are essential for EVs

Investments in cell manufacturing are anticipated to increase to US$9bn in 2030, according to financial service Icra

Cells are used in electronics to deliver more power and are necessary for Electric Vehicles to function. As many move from traditional petrol engines to EVs, the need for an efficient  cell supply chain is growing. 

Icra is based in Gurgaon, India, was founded in 1991 and advises Indian investment institutions.


Electric vehicle manufacturing expenses

Icra’s suggestion is based on the projected growth of EVs over the next few years and the fact that batteries are the most expensive part of an Electric Vehicle.

“In EVs, advance chemistry batteries remain the most critical and the costliest component, accounting for almost 35-40% of the vehicle price,” explained said Shamsher Dewan, senior vice president and group Head - Corporate Ratings at Icra. “At present, battery cells are not manufactured in India, and thus most OEMs rely on imports, and manufacturing operations in India are limited to the assembly of battery packs,” Shamsher Dewan, Senior Vice President & Group Head - Corporate Ratings, ICRA, said. “However, to achieve mass scale penetration of EVs and a competitive cost structure, India will need to create its own eco-system of developing battery cells locally.”

Youtube Placeholder

Tesla’s new battery manufacturing factory

Tesla recently announced that it will build a new battery manufacturing equipment line in California, at the Fremont Factory, after buying the factory in 2010. This new project is valued at US$1.5m and will help to supply batteries to Electric Vehicles in North America. 

“Tesla does not have a demand problem, we have a production problem,” explained Elon Musk. “We’ve almost always had a very rare exception, it’s always been a production problem. I think that will remain the case.”


Featured Articles

What to see and do at GSMA MWC Shanghai 2024

At the 2024 GSMA MWC in Shanghai, guests will learn more about the future of 5G and IoT, as well as the role of mobile connectivity in manufacturing

EV Recycling Driven By Tata Steel, Nucor and Dowa Holdings

Market projected growth for EV recycling set to go from US$551bn in 2024 to US$768bn by 2029 with Tata Steel and Nucor embracing ferrous metal recycling

Brooke Weddle: Manufacturing Needs A Rebrand

Brooke Weddle, senior partner at Mckinsey, sat down with Manufacturing Digital to discuss methods to address manufacturing's global hiring crisis

Immensa and Intaj Suhar partner to boost Omani manufacturing

Procurement & Supply Chain

Bain & Company Report: OEMs and Digital Transformation

Smart Manufacturing

The Factory of the Future: Manufacturers' Biggest Challenges

Smart Manufacturing