There’s been a significant push over the last few years toward electric vehicles. Most automotive manufacturers are jumping on board, eager to get their EVs on the road. Of course, they have to build the vehicles to make that happen. That requires certain goods that are critical to the electric auto industry.
Lithium Batteries
Electric vehicles have massive batteries that store the electricity needed to operate the vehicle. Currently, most all-electric vehicles and plug-in hybrid electric vehicles use lithium-ion batteries. They are desirable because they have a robust power-to-weight ratio (essential, given how heavy the batteries make EVs), are energy efficient, perform well in high temperatures, and have low self-discharge.
Their biggest drawback currently is the cost of material recovery. That could change in the near future though. Given how new EVs are, there hasn’t been much need for battery recycling yet. As the batteries age, however, it’s reasonable to expect the battery recycling market to expand.
Semiconductors
A lot of noise was made not too long ago about issues with the semiconductor supply chain. The shortage disrupted multiple industries since semiconductors are an essential component of electronic devices, including EVs.
In the case of EVs, they assist with intelligence, vehicle safety, and efficiency. Semiconductors require raw materials such as silicon. Germanium and gallium arsenide are also among the raw materials most commonly used in semiconductors. As auto manufacturers expand their line of EVs, expect additional possibilities in semiconductor manufacturing to be realized.
High-Voltage Cables
All vehicles, whether all-electric, hybrid, or internal combustion engine (ICE), have some sort of electrical system and therefore require electric cables to function. All-electric vehicles are different, however, in that they run solely on electricity. As such, they have a lot more electricity flowing through them (the comparative battery sizes can attest to that). That necessitates the use of high-voltage cables. These cables are different from those used by ICE vehicles and have higher performance regulations to meet. Regular automotive wiring and battery cables don’t cut it. High-voltage cables are used for the engine, in the vehicle’s inner wiring, to connect the ports, and to power the vehicle.
If you want to get in on the electric auto industry, consider starting a business that deals in the goods needed to build EVs. Given the continued efforts to encourage consumers to choose electric vehicles over internal combustion engine vehicles, it’s an industry that is likely to see continued growth over the next several years. That’s not something you can say about every industry.
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