Ultium Batteries Market: Highlights
- General Motors (GM), a U.S. based manufacturer of vehicle and vehicle parts, announced the manufacture of the first generation ultium battery in March 2020 to help ease electrification transition. The ultium platform is intended to be flexible and multifaceted, with the goal of eventually undergirding a variety of vehicle types and shapes.
- With battery options from 50 to 200 kilowatt-hours, GM can arrange ultium cells in different combinations of flexible modules and battery packs. These ultium batteries would have leading-edge chemistries with some of the highest nickel and lowest cobalt content in a large format pouch cell.
- GM has entered into a joint venture with LG Chem for the construction of its nearly 3 million square foot battery cell manufacturing facility ‘Ultium Cells LLC’ in Lordstown, Ohio, the U.S. The facility is expected to mass-produce ultium battery cells for electric vehicles and create more than 1,100 new jobs in Northeast Ohio. The plant is expected to open in the first quarter of 2021 with capacity of 30 GWh/yr. According to the company, most of the ultium drive components, including castings, gears, and assemblies, will be built with globally sourced parts at GM's existing global propulsion facilities on shared, flexible assembly lines.
- Ultium battery arrays are controlled by an entirely wireless battery management system that reduces physical wiring between battery modules in electric vehicles by up to 90%. This approach makes the manufacture of EVs much simpler and more efficient.
- GM is exploring the possibility of licensing its ultium battery and EV architecture to third parties. The company has signed a deal with Japan-based automaker Honda to jointly develop two new EVs that incorporate the ultium battery.
Key Drivers of Ultium Batteries Market
- Increase in consumption of eco-friendly vehicles has led to a revival of the global automotive sector. Demand for electric vehicles has been rising across the globe, led by an increase in efforts to curb air pollution and rise in government initiatives in developing countries to encourage foreign investments in the local automotive industry. The use of electric vehicles also reduces the dependence on fossil fuels. Furthermore, they require lesser maintenance and operating costs than ICE vehicles. This, in turn, is estimated to increase the demand for electric vehicles, thus driving the global ultium batteries market.
Ultium Battery and Propulsion System Highlights
- GM’s ultium batteries are different from other batteries in the industry, as large-format, pouch-style cells can be stored vertically or horizontally inside the battery packs. This allows engineers to optimize battery energy storage and layout for each vehicle design.
- Ultium energy options range from 50 to 200 kWh, which could enable a range up to 400 miles or more on a full charge with 0 to 60 mph acceleration in as low as 3 seconds. Vehicles designed by the company would support front-wheel drive, rear-wheel drive, all-wheel drive, and performance all-wheel drive applications.
- Ultium-powered EVs are designed for Level 2 and DC fast charging. Most of these would have 400-volt battery packs and up to 200 kW fast-charging capability. The truck platform would have 800-volt battery packs and 350 kW fast-charging capability.
Ultium Batteries Market: Covid-19 Impact
- The COVID-19 pandemic has had a negative impact on the global economy. It has adversely affected various industrial sectors by hampering the supply chain. Purchase and consumption behavior have changed significantly across various sectors with months of consumer lockdown and closure of international supply chains and retail businesses.
- The combination of extended lockdowns in developed market economies and domestic social distancing has deepened the adverse impact on emerging market economies. The automotive industry was also impacted with the extended lockdown. However, Global Motors continued its work on ultium batteries post lockdown.
Asia Pacific to be Key Region of Global Ultium Batteries Market
- In terms of region, the global ultium batteries market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In North America, the U.S. aims to promote investments in its end-use industries. This is estimated to boost the ultium batteries market in the country.
- Asia Pacific is a highly promising region of the global market. The automotive industry in countries such as China, Japan, and South Korea is inclined toward innovation, technology, and development of advanced electric vehicles. Increase in demand for reducing carbon emission and developing more advanced and fast charging stations is expected to propel the growth of electric vehicles. This, in turn, is anticipated to boost the demand for ultium batteries in the region in the near future.
- The market in Latin America and Middle East & Africa is estimated to expand at a moderate pace during the forecast period. The automotive sector in Mexico has been expanding steadily. The market in the UAE also exhibits significant growth. This is projected to drive the demand for ultium batteries in Latin America and Middle East & Africa, respectively, during the forecast period.
Global Ultium Batteries Market: Research Scope
Global Ultium Batteries Market, by Automobile Type
- Pickup Truck
- Delivery Van
Global Ultium Batteries Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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