Hyperdrive
Tight Battery Market Is Next Test for EVs After Chip Crisis
- China’s SVolt sees raw material constraints, rising demand
- Producer is adding production lines in Europe as market booms
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Rising demand from electric vehicles and challenges in securing raw materials will deliver a battery supply crunch for automakers already grappling with a chip crisis, according to a key Chinese manufacturer.
“When the chip shortage is over, the major supply shortage the industry faces would be batteries,” Yang Hongxin, chairman of SVolt Energy Technology Co., which has struck an agreement with Jeep-maker Stellantis NV, said in an interview. “The production capacity of battery cells will be tight in the next few years because expansion takes time.”