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HomeCarsCarmakers lift the veil on their electric battery suppliers

Carmakers lift the veil on their electric battery suppliers

Amid growing concerns about the safety of electric vehicles, several major automakers have taken the unprecedented step of revealing the identities of their battery suppliers. This increased transparency responds to a demand for consumer trust and could mark a turning point in the electric car industry.

A decision motivated by security incidents

The decision by Mercedes, BMW and Hyundai-Kia to disclose their battery suppliers follows a series of incidents in South Korea, the most recent of which involved a Mercedes EQE exploding in an underground parking lot, injuring 23 people. The events have sparked growing distrust of electric vehicles, prompting the South Korean government to consider legislation requiring automakers to disclose the origin of their batteries.

Faced with this situation, some manufacturers have chosen to take the lead by voluntarily communicating this information, traditionally considered confidential in the automobile industry.

Top Suppliers Revealed

The manufacturers' announcements have made it possible to identify the major players in the electric vehicle battery market:

  • BMW: The majority of models use batteries from South Korean manufacturer Samsung SDI, with the rest coming from Chinese manufacturer CATL.
  • Hyundai and Kia: LG Energy Solution and SK On supply most of the batteries, with some models equipped by CATL.
  • Mercedes-Benz: A diversification of suppliers including LG, SK On, CATL, and the Chinese Farasis Energy.
  • Interestingly, the Mercedes EQE involved in the South Korean incident was equipped with a battery from Farasis Energy, a relatively new player in the global battery market.

    Towards greater transparency in the industry

    The disclosure marks a significant shift in the electric car industry. Until now, automakers have been reluctant to reveal the origins of their batteries, considered the โ€œheartโ€ of electric vehicles and their most expensive component. Part of the reason for this reluctance is that, unlike internal combustion engines, which they have been proud to claim to have designed and manufactured, batteries are often produced by external suppliers.

    Increased transparency could have several implications:

  • A better understanding by consumers of what they are actually buying.
  • The possibility for some buyers to make choices based on the origin of the batteries.
  • Increased pressure on battery suppliers to improve the quality and safety of their products.
  • The environmental and ethical impact in question

    Beyond safety issues, this transparency also raises questions about the environmental and ethical impact of battery production. From the extraction of rare earths in sometimes questionable conditions to the carbon footprint of battery manufacturing, many aspects of the supply chain still remain opaque to consumers.

    This move towards greater transparency could therefore be the start of a broader movement aimed at making the entire electric vehicle production chain more responsible and traceable.

    Future prospects

    The European Union is already planning to make a “digital passport” for batteries mandatory from 2027. This initiative aims to provide detailed information on the origin, composition and environmental impact of batteries used in electric vehicles marketed in Europe.

    In the future, this increased transparency could become an important differentiator for car manufacturers, influencing the purchasing decisions of consumers who are increasingly aware of environmental and ethical issues.

    In conclusion, the decision by some major manufacturers to reveal their battery suppliers marks a significant turning point in the electric car industry. This transparency, although initially motivated by safety concerns, could have broader repercussions across the entire sector, promoting greater environmental and ethical responsibility throughout the electric vehicle production chain.