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

British luxury automaker Aston Martin celebrates its new partnership with the Henley Royal Regatta sporting event by designing a one-off DB11 sports car that they recently revealed. The car explores...
by - June 28, 2017
The 2018 Dodge Challenger SRT Hellcat as we know, is the Demon's less powerful sibling, and there’s nothing wrong with that. But have you ever imagined how it would look...
by - June 28, 2017
Sorry Uber, but Handsome Cabs taxi company has something no one else can offer - a Lamborghini Huracan that can take their clients from Point A to Point B. This...
by - June 28, 2017
BMW saw a potential oil leak on the new M760Li, prompting them to recall the said vehicle last April. Today, a little over two months after issuing the first recall,...
by - June 28, 2017
Without a doubt, the SUV segment is getting increasingly more saturated. This month alone, we were greeted with city-oriented SUVs from the Kia Stonic to the Hyundai Kona, and now...
by - June 27, 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