At least five electric vehicle battery startups would be acquired in 2022 by larger companies, a year that could also see energy storage startups raise $5 billion in private investments, according to the latest report by BatteryBits, put together by a team of 40 experts from 34 organizations including Tesla Inc.
What Happened:M&A activity would gain momentum as large companies look to pick up new technology and hard-to-find talent, as per The Battery Report 2021.
The report added that traditional automakers will accelerate electric vehicle production this year and U.S. buyers will have over 40 EVs to choose from in 2022.
The total global installed battery cell manufacturing capacity is expected to cross 800 GWh this year.
Battery cell companies and startups have announced plans to build a production capacity of up to 2256 GWh by 2025. China is expected to lead the market with 1220 GWh at about 54% of the global capacity. Europe and the U.S. are expected to reach 479GWh and 289GWh, respectively.
The number of gigafactories alone is expected to grow by 50% by 2030, as per the report.
Why It Matters:The global electric vehicle race is picking up pace as legacy automakers such as General Motors Co,Ford Motor Co,Volks wagen Group rush to catch up with the industry disruptor Tesla.
Battery makers and suppliers such as CATL and BYD Co too are pumping in billions to meet client demands even as Europe and the U.S. seek to lower dependence on China. CATL alone has a 34% share of the world's battery market.
American automakers are also building relationships with South Korean battery makers. Ford for instance, along with its South Korean battery partner SK Innovation, last year revealed plans to spend $11.4 billion for electric vehicle and battery production sites that are expected to start in 2025. Tesla and GM have similar investments lined up.
Not just bigger players, smaller startups such as Solid Power Inc,Quantumscape Corp, and others are working on their own technological innovations.
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