Continental, one of the largest automotive supplier is planning to invest in battery production. The German company is willing to establish a manufacturing unit in Europe that would reduce the heavy dependence by the companies here on Asian firms like Panasonic, Samsung, BYD and US firm Tesla, according to a report by Reuters.
The company, however, would not invest in the production of batteries presently in use like lithium-ion batteries but in next-generation, solid state batteries, which are leak free, smaller, have higher-capacity and less flammable.
The plant for manufacturing batteries for 500,000 electric cars a year would require an investment around 3 billion euros ($3.5 billion), a consortium for the purpose can be formed which might require funding from EU. EU had recently announced a Battery alliance and had set up a number of working groups on the development of battery manufacturing capacity in the continent.
The electric vehicle battery industry according to a report by Forbes will become a $240 billion global industry within the next 20 years, therefore we may see more companies entering the market in future.