As the auto industry electrifies, batteries could become a $360 billion market. Here’s how a bumper crop of startups are racing against shortages to supply the world.
Batteries are key to automakers' multi-billion-dollar plans to create electric vehicle lineups over the next several years.Aly Song/Reuters
Batteries are key to automakers as they electrify their lineups over the next several years.
The battery industry is full of opportunities, from new technologies to supply to recycling.
Here's a look at the many startups racing to lead in the battery space.
The future of the auto industry hinges, now more than ever, on batteries.
Batteries are critical to the multi-billion-dollar plans to create electric vehicle lineups over the next several years. They're critical as automakers seek to differentiate themselves and their offerings from one another. And they're a critical factor as the industry seeks to put its gas-guzzling, carbon-emitting past behind — if they can be developed in efficient, cost-effective, and environmentally sustainable ways.
The EV battery market is so important, it could hit at least $360 billion by 2030, according to McKinsey.
At Insider, we've looked at white-hot EV battery technologies. We've investigated how automakers are securing enough battery supply. And we've talked to startups working to recycle these batteries well after they're spent.
Below, you can read more about battery startups to watch, the battery metal shortages the industry is facing, and how automakers are navigating this important part of their business. You can also read more on the types of battery technologies that are winning in the industry.
Startups to watch
Automakers and nascent EV manufacturers are relying on dozens of outfits in the battery space to help them out.
As a result, new startups are emerging to tackle various bits of the battery chain, from supply to new chemistries to recycling. And these companies are bringing in a ton of capital these days, too.
Securing enough supply of EV battery materials, especially lithium, is top of mind for auto executives. Startup Lithium Americas could help.Lithium Americas
Shortages
The crisis in Ukraine shed a light on the impact that a shortage of a key battery metal — nickel — could have on the auto business.
But cobalt and lithium have long been a pending crisis for the industry, too. Securing enough supply of these materials, especially lithium, is top of mind for auto executives. These execs need massive amounts of materials at the right price that can be secured in an environmentally- and financially-responsible way.
It's no easy task, and they need to do all they can to get this part of the EV supply chain right.
The CEO of Rivian, for example, has warned the looming battery shortage will make the chip shortage feel like it's "a small appetizer."Rivian
How automakers are navigating the business
Automakers across the globe are betting their entire futures on electric products. But that future faces a threat with the pending EV battery supply shortage.
Some are pursuing partnerships to secure enough supply. Some are making huge investments in the space. Some think their approach to batteries could help them surpass range records to date. And some worry the impact of these shortages will only get worse.
Startup Ample says its battery tech could solve Uber's biggest electric car challenge.Ample
Specific battery technologies
Range anxiety is just one of the reasons customers are hesitant to go electric. But a battery's chemistry and technology can help bolster range, performance, and even vehicle safety. So startups in the space are experimenting with the best tech that can give their product — and their customers — a leg up.
From solid state makeups to battery swapping to technology that claims to double a Tesla's range, startups are pursuing every way to get a competitive advantage in the business.
