Why This Battery Maker Expects EV Sales To Struggle Until 2026

admin — Sat, 08 Mar 2025 13:00:11 +0000

Over the last decade, electric vehicles have been transformed from an elaborate science experiment to a legitimate transportation option for countless drivers around the world. Underscoring this, according to analytics firm Rho Motion, some 17.1 million light-duty passenger EVs were sold globally in 2024. That’s a whopping 25 percent year-over-year increase. Electric vehicle deliveries have been moving in the right direction, but they could be slowing down.

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EV Sales Might “Remain Sluggish”

According to a recent report from Reuters, electric vehicle sales may “remain sluggish” until the first half of 2026. This comes from Choi Joo-sun, the chief executive officer of Samsung SDI, a South Korean battery manufacturer.

While speaking at a battery exposition, Joo-sun also said he expects that in the first quarter of this year, the company’s earnings will bottom out before starting to gradually rebound in the second quarter. As Reuters reported, Samsung SDI posted a 2024 fourth-quarter loss of around $177 million.

This somewhat downward trend is echoed by Samsung SDI’s major competitor, LG Energy Solution, another South Korean battery company. Kim Dong-myung, the CEO of this high-tech firm also expects earnings to start improving in the second half of 2025. For the October-to-December period, LG Energy Solution posted an operating loss of $158 million. That compares unfavorably to the roughly $234 million profit they made during the same period a year earlier.

Building Batteries Is A Big Business

Nissan

Samsung SDI is a major battery manufacturer for electric vehicles. According to Rho Motion, this company was the fifth-biggest battery builder in the world last year, moving up one spot, beating Panasonic. Overwhelmingly, Samsung SDI builds battery packs for electric vehicles. Unlike rival companies, very few of its production goes to stationary energy storage systems.

In comparison, Contemporary Amperex Technology Co., Limited, or CATL for short, is the world’s biggest battery manufacturer, and by a country mile. This Chinese company builds a staggering number of batteries for EVs, and appears to make more stationary energy-storage systems than Samsung SDI makes batteries. BYD, another Chinese firm, one that’s also an automaker that focuses on building electric vehicles, comes in second place after CATL. Next is LG Energy Solution, and then comes CALB, the China Aviation Lithium Battery Company.

Many of the world’s top battery manufacturers are based in China, and to a lesser extent, South Korea. This makes sense when you look at the sales of electric vehicles. Some 17.1 million were delivered globally last year, around 11 million of which were sold in China, a 40 percent year-over-year increase.

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Canoo’s Struggle Comes To An End As It Files For Bankruptcy

admin — Mon, 20 Jan 2025 23:30:15 +0000

Canoo, the quirky electric vehicle startup with one of the most unusual names in the automotive business is in dire financial trouble. In fact, the situation is so bad, on Friday, the company announced it’s voluntarily filed for relief under Chapter 7 in the Bankruptcy Court of Delaware. According to a media release shared by the company, this move will “result in the federal appointment of a Bankruptcy Trustee to oversee the liquidation of the Company’s assets and the distribution of proceeds to creditors.”

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The End Of The Line

Canoo

Unable to secure any funding from the U.S. Department of Energy’s Loan Program Office (or, apparently from other sources, including international investors), Canoo will cease all operations effective immediately, an ignominious end to what was a promising automotive startup. The company was focused on building spacious commercial EVs fitted with “by-wire” technologies for steering, braking, and the powertrain. Having no physical connection between these vehicle systems and the driver’s controls greatly enhanced the versatility and flexibility of Canoo’s products.

Tony Aquila, the automaker’s chairman, CEO and major investor said in the same media release, “We would like to thank the company’s employees for their dedication and hard work. We know that you believed in our company as we did. We are truly disappointed that things turned out as they did.” He also thanked the Department of Defense, NASA, and the U.S. Postal Service for their support. “This means a lot to everyone in the company.”

In addition to those organizations, Canoo also delivered vehicles to the state of Oklahoma and Walmart. This is an impressive list of customers, but ultimately it proved to be insufficient to keep the company afloat, which is why executives have filed for insolvency.

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What Could Have Been

Had Canoo succeeded, our roads could have been dotted with the company’s bulbous but space-efficient vehicles. The company was developing a rounded, slab-sided van and even a pickup truck. Additionally, a lineup of purpose-built delivery vehicles similar to the Ford Transit range was in the works.

The company’s light-duty vehicles were supposed to be built on a modular skateboard-style chassis, a design that improves interior space and streamlines repairs and maintenance. This is very similar to what other EV manufacturers are doing, but Canoo’s drive-by-wire technology was supposed to set them apart from the crowd.

Designing, engineering, manufacturing, and selling modern vehicles is a colossal challenge. Established OEMs with a century of know-how and experience struggle to do this, which makes Canoo’s unfortunate failure unsurprising. The best way to make a small fortune in the automotive industry is to start with a large one.