The rise of inexpensive Chinese electric vehicles has increased the pressure on legacy automakers, prompting them to turn to suppliers, from battery materials makers to chipmakers, to reduce costs and develop affordable EVs more quickly than previously planned, Nick Carey and Paul Lienert reported for Reuters.
Fears of slowing demand due to the high cost of EVs have increased the urgency to reduce costs. I Photo: NAF and Motors I Business Wire
"Automakers are really now only turning to affordable vehicles, knowing they've got to, or they will lose out to Chinese manufacturers," said Andy Palmer, chairman of UK startup Brill Power, which has developed hardware and software to boost EV battery management system performance.
Palmer, formerly Aston Martin's CEO, said Brill Power's products could boost EV range by 60% and enable smaller batteries. The battery is an EV's most costly component.
Fears of slowing demand due to the high cost of EVs have increased the urgency to reduce costs. Renault, for example, stated last month its plans for 40% cost reductions for its EVs to achieve price parity with fossil-fuel models.
Stellantis is building a European plant with China's CATL to make cheaper LFP batteries, and it recently unveiled the Citroen electric e-C3 SUV, which starts at 23,300 euros ($24,540.) Both Volkswagen and Tesla are developing 25,000-euro EVs.