Powering up production: what to consider when producing a competitive EV battery pack

Battery packs are critical to the continued growth of the electric vehicle market. James Eaton, co-founder and CEO of start-up and electric vehicle battery pack developer IONETIC, outlines the challenges.

The end of 2022 saw five months of consecutive growth in new car registrations in the EU, giving automakers cautious optimism for the year ahead. This recovery is undoubtedly led by the electric vehicle market, with battery-electric vehicles achieving their largest-ever monthly market share of 32.9% in December 2022.

As policy pressure increases, and consumer appetite grows, passenger EV sales are set to continue growing. French auto consultancy Inovev expects battery-electric vehicle (BEV) sales in all of Europe will rise to 2.1 million this year from 1.7 million in 2022. Sales are predicted to rise steadily to 2.9 million in 2025 and to 5.8 million in 2030, when BEV sales will account for 40% of total sales.

This growth, along with the clear environmental benefits, has attracted essentially all vehicle manufacturers, to put more time and effort into squaring off their own corner of the market. However, to be successful, manufacturers need to develop a product which is competitive at launch, and remains competitive for years to come. Maximising a model’s appeal throughout its lifetime is essential in order to maintain customer appeal and with such rapid change, future-proofing is more important than ever.

Critical component

Balancing model appeal and keeping costs low is a challenge for many established OEMs, but for many small manufacturers and niche vehicle makers, this is even harder. There are many factors to be considered when trying to stay competitive and for electric vehicles the most critical component to consider is the battery pack. Key to a vehicle’s reliability, performance, range, safety, and total cost, producing a competitive battery pack is vital for OEMs of all sizes. Considering that the end-to-end investment needed to develop an effective electric vehicle battery pack can reach upwards of £50 million – having an intelligent, efficient, and cost-effective development and manufacturing strategy is essential.

It’s hard to overstate the importance of considering the security of supply when developing a battery pack solution. This is, after all, where a competitive battery pack begins. A dependable supply chain will avoid costly delays that occur when trying to get battery packs from their source to the vehicle production line.

Not only can a secure supply chain help ensure higher vehicle output and allow for the maximum opportunity to capitalise on consumer demand, but with more stringent UK Rules of Origin legislation due in 2027, and the high price of raw materials, a simple, onshore supply chain is of the utmost importance.

Design

Design is another important aspect to consider. Flexibility here is key, and instead of selecting an off-the-shelf solution, which is unlikely to fit many of your needs, optimising your

battery pack design to meet your criteria will allow you to optimise your balance of performance, range, and mass, and will yield a better product, best suited to your consumer’s needs.

While traditionally the order volumes required by battery pack suppliers can be prohibitive for smaller vehicle manufacturers, securing flexibility is crucial. This will aid in managing the cost per unit – helping the OEM to introduce a vehicle to the market at a more competitive price point.

Unfortunately, these factors, while all beneficial for small manufacturers to consider, may seem unlikely, or difficult to achieve. It may seem that many bespoke, well-optimised battery packs rarely come with a low order quantity and those that do traditionally come with high development costs. Meanwhile cheaper alternatives and off-the-shelf solutions do not provide a performance-competitive product.

Cost reduction

It’s clear that manufacturers need battery pack solutions which can combine cost reduction with customised design. This is exactly what IONETIC has always aimed to supply, and we have developed bespoke software and hardware which can provide a customised design in just a few days – cutting down the traditionally costly design process.

We also offer end-to-end management of the entire process from inception to production, with our first prototype-manufacturing capability being delivered in our UK-based facility, opening later this year, looking ahead to mass production soon.

Now is the time to be in the electric vehicle sector. With unprecedented levels of consumer interest and a market that’s set to grow rapidly, the next few years are going to witness widespread change in the automotive sector. We are in a great position to be reactive to this, and offer solutions in this ever-changing space expand and reach new heights.

¹ The Society of Motor Manufacturers and Traders, Chip crisis subdues new car market but EVs now second only to petrol, January 2023

Bloomberg NEF, Electric Vehicle Outlook, December 2022

2. Reuters, Chinese carmakers target more European sales with five-star EVs, November 2021

Image courtesy of IONETIC