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Why Are Investors Banking on Electric Cars and Batteries?

electric and hybrid auto body repair berkeley

The Auto Industry is Responding To Consumer Interest in Electric Vehicles

Why are world-renowned investors banking on electric cars and batteries? The age of internal combustion car engines is coming to an end and electric and hybrid vehicles are rapidly taking over. As an investor, it’s the right time to take a piece of the action.

The world is changing, and so are business models. Ten to fifteen years ago, few (if any) would have predicted that major automakers will focus on manufacturing electric vehicles that are powered by lithium-ion battery packs.

The most innovative and game-changing technology behind the next-gen electric cars is simply the lithium-ion battery. Goldman Sachs has even named it “the new gasoline.” According to The Economist, lithium is the world’s hottest commodity right now.

Lithium-ion batteries offer outstanding benefits over the conventional internal combustion engines. They will even be the primary backbone of the proposed next-generation personal transportation system.

In order to support the rapid production of electric cars, the auto industry has already witnessed a growing demand for this key resource, i.e. lithium-ion, and the demand will be even higher in the coming years. Considering this fact, the opportunities for investors seem to be absolutely lucrative and profitable. This is why famous venture capital business units have already invested $1 billion into the battery technology.

Clearly, it’s an extremely rewarding business decision as these firms have doubled their investment money within a year. This year, the number of venture capitalists investing in battery companies is likely to hit 60, up from 37 last year.

For instance, Farasis (a renowned Chinese company) has signed a business agreement with BAIC (the largest auto manufacturer in China) for 1 Million battery packs over the next five years.

As per the current trend, many giant automotive manufacturers have established their very own venture capital firms just to invest in battery technology and conduct research for alternative battery materials and storage.

For instance, Oxis Energy received $5.2 Million to develop lithium-sulfur battery packs which supply five times more energy than lithium-ion battery packs. Likewise, a few other companies are performing R&D to design solid-state batteries for electric cars.

The auto industry has witnessed a hefty investment of $1 Billion for battery technology for electric cars this year–a big leap from the $33 Million invested back in 2013. If the manufacturers can reduce the production cost of these batteries, we will be seeing a lot more affordable electric and hybrid vehicles on the road in the next few years.

Need East Bay Auto Body Repair on Your Electric or Hybrid Vehicle?

If you’re in need of state-of-the-art Berkeley auto painting, auto body repair or collision repair services, contact the team at Shattuck Auto Collision Center today. Send us a message via our online contact form here, or call (510) 848-6281 for more information.

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