BASF SE enters battery making fray on longer term

Article by Anita Panait, on February 27, 2014

BASF SE is investing to enter the currently struggling auto battery industry, on the hopes that customers will still be attracted to electric vehicles. The company, learning from the failures of collapsed battery makers, will focus on making batteries that allows EVs to run longer. BASF has made battery materials one of the 10 areas it is targeting for growth. "We are committed," Adrian Steinmetz, head of global business management at BASF's battery materials unit, told Bloomberg in an interview. "Having this long-term strategy is typical of BASF." The company’s aim highlights a willingness by chief executive Kurt Bock to invest into a market where returns may take time.

Some rivals have already collapsed, no thanks to sluggish demand for electric cars and reputation issues due to fires that broke out in some Tesla vehicles. Israeli charging station developer Better Place Inc. filed for bankruptcy in 2013 while Evonik Industries AG is now looking for a buyer for its battery activities including a joint venture with Daimler AG.

Ironically, Evonik said six years ago that it wanted to become Europe's leading producer of lithium ion battery components. In October 2013, chief executive Klaus Engel remarked that the carmaker was abandoning the project. "The electric auto market was expected to soar in the direction of the sky," Joachim Krotz, partner at consultancy Oliver Wyman, told Bloomberg.

"But all of that didn't come true.” He noted that the increase of battery capacity is taking so long.  “They are still too heavy. They still lack power." Siemens AG has also closed its EV charging operations in 2013, citing slower-than-expected market growth. [source: Bloomberg]

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries