The EV industry is transforming with major automakers investing heavily in battery technology. Innovations and collaborations are reshaping the future of EV battery production.
According to BIS Research, the European EV battery formation and testing market (excluding the U.K.) was valued at $227.6 million. It is projected to grow at a 16.76% CAGR, reaching $917.7 million by 2032, driven by rising EV demand and the need for battery safety and performance verification.
BMW has taken a bold step in its EV journey with a $1.7 billion investment aimed at transforming its Spartanburg, South Carolina plant into a hub for electric vehicle production. This includes $700 million for a new battery assembly facility in Woodruff, opening by late 2026, and a partnership with AESC for a battery cell plant in Florence.
Daimler Truck and Paccar, in partnership with Accelera and EVE Energy, are launching Amplify Cell Technologies in Mississippi to produce lithium-iron-phosphate (LFP) batteries. This venture aims to meet rising demand for electric medium- and heavy-duty commercial vehicles, advancing the shift to electric mobility.
General Motors (GM) is aggressively expanding its battery production capabilities through its Ultium Cells joint venture with LG Chem. The venture secured a $2.5 billion loan from the U.S. government in December 2022 to fund its battery factory projects, underscoring GM’s commitment to leading the EV battery market. Further strengthening its position, GM announced a new joint venture with Samsung SDI in April 2023 to build an additional battery plant in the U.S.
Hyundai has set its sights on expanding its EV production capacity through a $5 billion battery plant in Bartow County, Georgia, in partnership with SK On. This facility is a key component of Hyundai’s broader strategy to scale its EV operations. Moreover, Hyundai’s collaboration with LG Energy Solution to establish another battery cell factory near Savannah, Georgia, highlights the company’s commitment to producing 300,000 EV units annually.
In 2022, Mercedes-Benz opened a battery plant in Alabama to supply batteries for the EQS SUV, EQE SUV, and upcoming Maybach EQS SUV. The company is also collaborating with Sila to integrate advanced battery materials, aiming for a range-extended G-Class by mid-decade.
Stellantis, parent of Alfa Romeo, Chrysler, and Jeep, is advancing EV battery production with two key initiatives: a joint venture with Samsung SDI is building an Indiana facility, with a second planned for 2027, while a separate venture with LG Energy Solution is developing a 40 GWh factory in Windsor, Ontario.
Tesla's Nevada Gigafactory, operational since 2017, has produced over 7.3 billion battery cells. In January 2023, Tesla announced an expansion to include a 4680-cell factory, which will produce enough batteries for 1.5 million vehicles annually. These 4680 cells aim to cut battery costs by over 50%, marking a major advancement in EV technology.
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Toyota is expanding its North Carolina battery plant, originally announced in 2021, to produce cells and modules for hybrids and EVs. In October 2023, Toyota announced further investments in the facility and also partnered with LG Energy Solution to produce EV batteries at its Michigan plant, strengthening its EV infrastructure.
Volkswagen's PowerCo SE, launched to supply batteries for its EV models, plans to build three cell factories by 2030—in Germany, Spain, and Canada. The venture is expected to generate over 20 billion euros annually, bolstering Volkswagen's position in the EV battery market.
Volvo operates a battery assembly facility in Charleston, South Carolina, which plays a crucial role in its EV production strategy. While Volvo has yet to confirm additional battery production plans in North America, the Charleston facility underscores the company’s commitment to electrification.
Explore the evolving EV industry as automakers invest heavily in battery tech with, BIS Research's Automotive Market
These innovations and investments demonstrate the automotive industry’s dedication to advancing EV technology and scaling battery production.
