The move towards full battery electric vehicles becoming mainstream took another step forward at the recent Frankfurt motor show. Volkswagen’s launch of the ID3 was the undoubted highlight. Other important models included the Porsche Taycan and the Mercedes EQV van. Alongside these were several new plug-in hybrids. However, while the number and variety of electrified vehicles continues to grow, concern remains over how they will all be powered.  Can the industry build enough batteries and who will build them?

Battery production has emerged as a key issue in the industry. While Tesla has operated an integrated car and battery plant for some years in California, and plans to do the  same in China (and probably in Europe in the fullness of time), European car companies generally source batteries from independent suppliers, away from the car plants.  But the scale of investment required to meet future demand should not be underestimated…