A recent by Gartner indicated that over 50 per cent of the electric vehicles (EVs) sold globally will be Chinese-branded automobiles by 2026, given their access to minerals and battery manufacturing capacity.
Besides its manufacturing capabilities, China has been able to build onto its existing automobile supply chains to augment growth, Gartner said in a recent report.
“There are more than 15 Chinese companies selling EVs and many of these are smaller and much less expensive models than those sold by foreign rivals” Mike Ramsey, VP Analyst at Gartner stated in a press release. “While foreign automakers like Tesla, VW and GM are selling a lot of EVs in China, the growth is much faster with Chinese companies,” it said.
As demand grows around the world for EVs, Chinese firms are well-situated to take advantage of the growth with good access to key minerals and battery manufacturing capacity in China. Gartner recommends that automotive CIOs focused on EVs, integrate supply chain planning and visibility software to ensure better business decisions about where key materials are sourced and ensure resiliency for key materials, it added.
Gartner analysts estimate that by 2025, tech giants will own a part of the operating system for 95% of new cars on the road.
The consultancy firm recommends that automotive chief information officers focused on EVs, and amalgamate supply chain planning and software, to ascertain where key materials are sourced and secure resiliency for key materials.
Globally, only around seven countries have access to lithium ion reserves, namely, China, Australia, Congo, Chile, South Africa, and Indonesia, with India being the latest to join this rank. The sharp increase in raw material prices like lithium and nickel will inherently drive battery electric vehicles (BEV) costs higher.
Key materials such as lithium are very important in the race for achieving self-sufficiency, and reducing dependence on imports. The recent 5.9 million tonnes of lithium discovered in Jammu are slated to give India an advantage for batteries used in electric vehicles.