Automotive Engineering - April 2024 - 10

TECHNOLOGY REPORT
MANUFACTURING
Porsche study: Europe missing out on tooling battery gigafactories
A study examining the prospects for
supplying manufacturing tooling for the
scores of EV battery " gigafactories "
scheduled to be built worldwide found
there are opportunities for Europe-based
mechanical and production-engineering
firms. But it also serves as a warning that
China-based engineering companies
have established deep foundations in the
vertical integration typical of gigafactory
construction - foundations that may
prove difficult to shake.
The study, " Battery Manufacturing
2030: Collaborating at Warp Speed, "
was conducted by Porsche Consulting
in collaboration with the German
Mechanical Engineering Assn. (VDMA).
It determined that, worldwide, there are
approximately 200 EV battery gigafactories
either planned or currently under
construction. " At the moment, " the
study blunted concluded, those battery
manufacturing facilities " are mainly
equipped with production technology
from Asia. Chinese machine builders are
currently setting the standard as fullservice
providers. Only eight percent of
the high-tech equipment in such factories
comes from Europe. "
In a release, the VDMA said it represents
more than 3,600 German and
Battery developer and manufacturer Northvolt's Ett (One) battery plant in Skelleftea, Sweden, is
claimed to be the European continent's first battery gigafactory.
European companies in the mechanical
and plant-engineering sectors, companies
that employ approximately three million
people in the European union, including
more than 1.2 million in Germany. The
study warned that Europe's 8% share of
the market for battery-factory equipment
" is too low to have a significant influence
on technical development and to create a
second cluster for battery technology
that is based in Europe. This would require
a permanent market share of about
20 percent. "
The study's analysis indicated that
collaborations such be a focus of the
European plant-tooling industries. " Only
if European mechanical engineering
firms succeed in jointly offering integrated
factory solutions will they be
able to hold their own against the competition
from Asia, " said Gregor Grandl,
Senior Partner at Porsche Consulting
and co-author of the study.
" Technologically, European industry is
on an equal footing, " he continued, " but
companies from China are already offering
turnkey battery plants. "
" Customers' exacting requirements for
turnkey suppliers require a rethinking in
the ramp-up phases for this industry, "
said Stephan Eirich, President of
Lithium-ion battery cell production at Volkswagen's Salzgitter, Germany, plant, which is targeted to
come on stream with production-vehicle battery cells in 2025.
10 April 2024
Maschinenfabrik Gustav Eirich GmbH.
" This poses new challenges even for experienced
machine and plant engineering
firms, but we're up to the task. "
The study said the market for machinery
and plant manufacturers in the battery
sector alone is 300 billion euros between
now and 2030. To maintain
Europe's current market share 8% during
this period of rapid gigafactory construction,
the study determined a growth rate
of 33% per year would be necessary -
and to attain a 20% market share, companies
would have to grow faster than
the market. " Success in this competitive
environment would secure Europe permanent
access to the important future
technology of batteries and create many
jobs in the process, " the report indicated.
The study can be downloaded at:
www.porsche-consulting.com.
Bill Visnic
AUTOMOTIVE ENGINEERING
TOP: NORTHVOLT

http://www.porsche-consulting.com

Automotive Engineering - April 2024

Table of Contents for the Digital Edition of Automotive Engineering - April 2024