The electric vehicle industry is growing fast, but it’s not without challenges. Manufacturers are trying to find the parts needed to meet demand while keeping costs down. There are many factors affecting production and supply chain management.
What’s affecting production?
The increase in demand for electric vehicles (EVs) is outpacing supply, which means auto manufacturers are having a hard time finding the parts and materials they need to meet the growing demand.
There are several reasons for this, including:
- Battery availability. The lithium-ion batteries that power EVs can be challenging to produce in large quantities because of the high cost, low recycling rates and environmental concerns associated with their disposal. As such, battery production has been unable to keep pace with EV sales growth.
- Materials scarcity issues. There aren’t enough rare earth metals like cobalt or platinum available on earth to make all of our electronics—much less cars—so we mine these minerals from other planets or asteroids (the latter being more difficult). This scarcity has led many companies working on new EVs to consider using alternative materials like aluminum alloys instead of steel frames.
What manufacturers are doing to meet the demand
As you can see, the demand for EV parts is growing, and automakers are doing their best to meet it. In fact, they’re finding the parts from all over the world—from China and Japan to Europe and South America.
However, that doesn’t mean that everything is coming from overseas. Some of the most critical components are staying close to home: Tesla’s battery came from Panasonic’s Gigafactory in Sparks, Nevada; GM uses batteries made by LG Chem in Michigan; and Ford sources its cells from China-based Contemporary Amperex Technology Co., Ltd.
We’ve seen the EV industry grow exponentially over the last decade, and it’s exciting to see how many manufacturers are developing new ways of producing their products. From 3D printing to robotic assembly lines, there are many ways manufacturers can use technology to meet their production goals and ensure a sustainable future for our planet. A trusted supplier like SpectrumComponents is just the partner needed to ensure the parts are always available on time.