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

Login or Create new account to add a comment!

Recommended

In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
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