Li-Ion battery production is increasing rapidly. So are the risks and uncertainties in the new electric vehicle supply chain. Considering the robust, reliable and sustainable packaging to carry electric vehicle parts from the very design stage gives suppliers and OEMs a significant impact. zamIt saves time and cost.
According to the 2021 Electric Vehicle Battery Supply Chain report published in Automotive Logistics, the electric vehicle market is expected to have 10 percent compound annual growth rates in the next 20 years. The increase in the growth rate in the pandemic has paved the way for a large investment in electric vehicle battery production. The report projects global battery production capacity to rise from 2020 GWh in 475 to over 2030 GWh by 2.850.
According to the report "Zero Emissions in 2050: A Roadmap for the Global Energy Sector" prepared by the International Energy Agency, while electrification in transportation needs to be increased in order to achieve global emission targets, the current capacity of 160 gigawatt-hours per year in battery production for electric vehicles will increase to 2030 gigawatt-hours in 6. is expected to rise.
Battery supply chain brings new financial risks
The industry aims to reduce battery prices to less than $100 per KWh, and it is stated that this will bring the cost of electric vehicles to the same level as internal combustion engine vehicles. This is seen as the key for manufacturers to reach their electric vehicle sales targets. According to Cairn ERA, a research firm with a voice in energy research, even the most efficient Li-Ion battery manufacturer has a battery cost of $187 per KWh, with the industry average standing at $246 per KWh. On the other hand, electric vehicle giant Tesla, on the other hand, pays an average of 142 dollars per kilowatt to battery manufacturers, and stands out as the company closest to the internal combustion engine cost. It is predicted that the pressure of original equipment manufacturers (OEM) to reduce their costs will also be reflected on battery manufacturers; Since the new generation battery supply chain is very different from the current automotive supply chain that has developed over more than one generation, it is observed that there are risks and factors that will affect their financial stability.
The biggest problem in electric vehicle batteries is transportation.
Depending on these critical factors, the most frequently overlooked issues are; Here comes the packaging used to transport Li-Ion cells, modules and battery packs. Electric vehicle batteries are highly vulnerable to dangerous leaks, thermal runaways and loss of quality during shipping. This means that the packaging must be UN certified and meet much higher requirements than standard auto parts. Even cardboard boxes for a full battery pack can cost between $300 and $500, about 7 percent of the total battery cost. However, the one-way cardboard box provides much less protection against many factors during shipping that can affect battery quality. Moisture from sea voyages can weaken cardboard, leaving it vulnerable to stacking damage and requiring more handling as it is not suitable for automated production lines. Considering all these risks, the cost of damage or loss of quality from the cardboard box during shipping can have serious effects on profitability.
UN-approved containers make a difference in battery shipping
Transporting cells and modules in standard UN-approved reusable containers provides a much higher packing density, increasing efficiency. Containers that can be stacked three times instead of two, enable more products to be transported in sea containers. These two factors alone help achieve much lower costs and sustainability goals. When considered within the scope of reducing the carbon footprint, cardboard box waste increases the carbon footprint as well as management and recycling costs. On the other hand, when faced with sudden increases in demand, it is a great challenge to ensure the right packaging supply at all times. All these factors explain the need for an EV battery packaging partner early in the battery design process to increase and protect profit margins.
customers each zamthe moment has the right packaging with the quality it needs
CHEP offers tailor-made solutions to its customers as a supply chain partner in Li-Ion battery packaging and transportation. With its global experience and working experience in the automotive industry, it draws attention with reusable solutions that reduce cost, risk and waste. CHEP, same zamcurrently supplies UN-certified containers that meet the required standards for automotive supply chains, optimize existing risks, and meet all relevant requirements and certifications for dangerous goods transport. Containers designed to be shared and reused provide much more protection to Li-Ion batteries. CHEP also takes care of the repair, maintenance and supply of all pre-use containers. Regardless of changes in demand, customers zamnow has the right packaging with the quality it needs. The company helps customers fully optimize their packaging solution to reduce cost and waste. With the Computer Aided Design software, the optimum package density can be calculated quickly and even customized packages can be designed if necessary. Reality about both the status and location of containers, providing full visibility into the supply chain zamMonitoring solutions that provide data and insights in real-time are also offered. The company collaborates across the industry to help the automotive industry meet the challenges in the battery supply chain. Since 2018, CHEP also manages the “Battery In Focus” forums, where experts from all fields related to the manufacture, transport, use and disposal of electric batteries gather.
“We are the global solution partner of the sectors in reducing costs and increasing sustainability”
Making a statement on the subject, Engin Gökgöz, CHEP Automotive Europe Region Key Customers Leader, said, “Lithium-Ion battery manufacturers are faced with new risks and liabilities in their supply chains. Incorporating CHEP as a supply chain partner means less cost, less uncertainty and less waste while carrying more batteries. We are the world's largest share and reuse supply chain management company. On a global basis, CHEP is rated as one of the most sustainable companies. Working with OEMs and Tier1s on all continents, we have been working as a global solution partner to reduce costs and increase sustainability through reusable automotive supply chain solutions for more than 30 years.”