Tag Archives: Auto Industry

Electric vehicles (EVs) have become more mainstream in today’s automotive industry, and the next few decades will see automakers electrifying their lineups and emphasizing emission-free cars. Some consumers hesitate to drive EVs because of their battery range, so how will auto manufacturers improve these critical devices? Here’s how far battery technology has come and what to expect in the future.

How Far Has Battery Technology Come for EVs?

The first EVs hit the road in the late 19th century, as inventors used primitive technology to power their machines. One of the first EVs came from Gustave Trouvé, who used a rechargeable battery to power a tricycle in 1880. By 1888, German engineer Andreas Flocken invented the first four-wheel electric car using a motor with about 1 horsepower. While it could only drive 9 mph, Flocken’s machine would be inspirational.

Modern EV batteries date back to 1997 with the EV1 from General Motors (GM). This vehicle didn’t last long on the market — as GM destroyed most of the cars — but its battery technology was critical for future machines. The EV1 used lead-acid batteries and had a range of about 74 miles before needing a charge. Nickel-metal hydride batteries doubled the range to 150 miles thanks to increased efficiency.

These batteries seem primitive by modern standards but were critical for the time and the evolution of battery technology. The inventions set up EVs to have improved technology for today’s EV revolution.

What EV Battery Technology Is Available Today?

Auto manufacturers transitioned from lead-acid to lithium-ion batteries in the 2010s, following Tesla’s success with the Roadster in 2008. The California-based EV manufacturer was the first to use these advanced devices in a car, with each system containing 6,831 lithium-ion cells for increased efficiency.

The Roadster could travel 200 miles on a single charge, giving consumers hope that manufacturers could produce efficient EV batteries and compete with gas-powered cars. Tesla’s innovation led to the Nissan Leaf, the Renault Fluence Z.E. and other mass-produced EVs utilizing advanced technologies.

This decade, EVs have improved their range and become more palatable for consumers needing reliable machines. While electric cars occupy a small market share now, experts say EVs will constitute 45% of new car sales by 2035 — signaling a significant shift in the automotive industry.

Most modern EVs still use lithium-ion batteries because they’re the most efficient mainstream option. However, researchers have found ways to improve battery technology and make electric cars more efficient.

What Does the Future Hold for Battery Technology?

EV demand has slightly slipped after a successful run in the late 2010s and early 2020s. Multiple automakers have announced they are pushing back EV production timelines because consumer desire has dropped. How can automakers pull customers back into buying EVs?

Making batteries more efficient to compete with gas-powered cars is a crucial first step. Additionally, manufacturers must produce more sustainable batteries to comply with environmental, social and governance (ESG) policies. Here are a few innovations on the horizon to improve EV battery technology.

Sodium-Ion

Sodium-ion (Na-ion) batteries are an emerging favorite for lithium-ion alternatives because they cost less and are currently in production in some countries. The International Energy Agency (IEA) says China plans to reach 30 production plants for creating Na-ion batteries, and it won’t be long before this technology spreads worldwide.

Na-ion batteries are advantageous because they contain no lithium, an expensive material for EV production. This alternative is cheaper and more accessible for the average EV driver. Using a Na-ion battery also brings advantages like faster charging and a reduced risk of overheating.

Cobalt-Free

Some question the sustainability of EV batteries, considering their use of cobalt. Much of the world imports this metal from the Democratic Republic of the Congo, where workers suffer adverse working conditions. Mining cobalt leads to polluted water and toxic effluents for the employees and surrounding communities.

These controversies have led researchers to develop cobalt-free batteries and boost sustainability. For instance, the University of Texas-Austin has created a battery using 89% nickel, with manganese and aluminum constituting the other elements. These cobalt-free batteries are less expensive and more energy-dense, making them a popular alternative for future developers.

Solid-State

EV batteries can be a liability in extreme hot and cold because the device must work harder to power the car. Using lithium-ion batteries means the liquid electrolyte solution is vulnerable to weather, so how can manufacturers remedy the problem? Solid-state batteries require no liquid or gas in their composition, making them a more stable alternative to lithium-ion devices. Removing liquid also means a reduced chance of leaks under the hood.

Solid-state batteries have existed for a while, but manufacturers like Toyota have improved them thanks to sulfide superionic conductors and other innovations. These batteries aren’t available in current vehicles, but reports say Toyota will implement them for commercial use by 2027. However, timelines could shift due to the supply chain and new research.

Advancing Battery Technology for EVs

Automakers are leaning into EVs to reduce emissions and meet sustainability goals. While technology has evolved, batteries have been an obstacle for consumers due to their perceived lack of range and reliability. Lithium-ion batteries have made EVs more efficient, and more innovations will arrive to boost range and safety.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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The automotive industry is driving automation by having the largest number of robots working in factories around the world — operational stock hit a new record of about one million units, according to the International Federation of Robotics (IFR). With the prevalence of automation rising in the automotive industry, the benefits associated with its use in manufacturing cannot be understated. With advantages that work to bring productivity and efficiency all around, advancements in technology such as the integration of artificial intelligence underline the many innovative applications to come.

Exploring the current advantages of automation

“The automotive industry effectively invented automated manufacturing,” notes Marina Bill, the President of the IFR. “Today, robots are playing a vital role in enabling this industry’s transition from combustion engines to electric power. Robotic automation helps car manufacturers manage the wholesale changes to long-established manufacturing methods and technologies.” The IFR goes on to highlight the recent density of robots in the automotive industry — in the Republic of Korea, 2,867 industrial robots per 10,000 employees were in operation in 2021, while Germany had 1,500 units followed by the United States with 1,457 units.

Automation plays a variety of roles in automotive manufacturing, including taking on tasks such as screw driving, windshield installation, and wheel mounting. Automate highlights one example of a valuable role that automation plays in the manufacturing process, via an automated vehicle floor plug insertion system developed by FANUC for General Motors. As a result, the system effectively helps relieve workers from “the ergonomic strain of the manual process and improves production time.” Apart from assembly, Robotics and Automation News notes additional uses for automation in manufacturing include car painting, welding, polishing and material removal, and quality inspection. Regarding the benefits, automation in automotive manufacturing is known to have a wide variety of advantages that heighten productivity in immense ways — including lowering costs, improving accuracy and safety, and amping up efficiency.

Increasing automation highlights a productive future

According to CBT News, automakers are “likely to introduce more robots and other forms of automation over time.” Currently, CBT notes that many robots on production lines are called ‘cobots,’ as they work alongside workers in order to complete tasks that are physically demanding or more challenging to do — Ford, for example, has “at least 100 of these cobots across two dozen of their plants around the world.” Automakers are already planning for increased automation in the future in order to achieve various goals. Tesla is a pioneer regarding factory automation and robots; Elon Musk, for example, has said that introducing more automated equipment at Tesla as part of a goal to cut the costs of making future models by 50%, according to CBT News.

To further underline the presence of automation in auto manufacturing, a 2021 article from The Korea Economic Daily Global Edition highlights the use of robots and artificial intelligence (AI) by Kia Corp., South Korea’s second-largest automaker. According to the article, the company had released a video “showing a highly automated production line of the all-electric mid-size crossover utility vehicle (CUV) at a smart factory powered by artificial intelligence and robot technology.” Crossovers have risen in popularity in the US, with the vehicle featuring an SUV-style body based on a car (rather than a truck platform), therefore using unit-body construction. Today’s crossovers offer a variety of features, with top-rated crossovers offering those such as a spacious interior and a smooth engine.

Innovation foreshadows advancements to come

In addition to simply expanding automation efforts throughout auto manufacturing, ‘smart manufacturing’ employs technology in addition to automation. Also called Industry 4.0, RT Insights notes that data-driven decision-making and predictive maintenance are just the beginning of the advantages associated with smart manufacturing, with benefits extending to areas such as energy efficiency and supply chain optimization. “The resulting factors of having a smart manufacturing set-up are efficiency, production optimization, trackability, quick turnaround during downtime, safer working conditions, and responsible manufacturing,” notes Mobility Outlook.

AI and machine learning (ML) are both components that are driving the future of smart manufacturing, with Mobility Outlook explaining that AI systems analyze data sets and historical records of Internet of Things (IoT) devices. As a result, AI can identify patterns and trends which would otherwise go unnoticed by workers. ML algorithms, on the other hand, can “learn from data, make predictions, and make suggestions to improve manufacturing processes.” Predictive maintenance can also make a major difference in the future of automotive manufacturing, with the analysis of data allowing for minimized repair costs and proactive maintenance. Furthermore, Mobility Outlook highlights the value of quality control systems powered by AI — with this technology, defects can be detected in real-time, allowing for waste reduction and improved product quality across the board.

Automation brings a variety of benefits to automotive manufacturing. While automakers are already making use of the technology, technological advancements like AI are driving the future of ‘smart manufacturing,’ effectively foreshadowing a range of advantages to come.

*This article is written by Lottie Westfield. Lottie spent more than a decade working in quality management in the automotive sector before taking a step back to start a family. She has since reconnected with her first love of writing and enjoys contributing to a range of publications, both print and online.

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Has the trend passed about caring for the environment and preventing harmful emissions?

Despite the fact that GMC is touting its new, 2024 Hummer EV SUV, starting at a cool $80,000 with a 329 range on a full battery charge, Reuters is reporting that the demand for electric vehicles isn’t keeping up with expectations. In October 2023, Honda and General Motors announced they were ending a $5 billion partnership to develop lower-cost EVs. GM says it’s to “enhance the profitability of our EV portfolio and adjust to slowing near-term growth.” Ford, too, just announced it pushed back its EV production timeline because of slower customer demand. Investors are taking notice. Automakers are thrown for a loop.

It’s not for lack of desire for electric vehicles by consumers, auto manufacturers and climate activists alike. Reducing the sting at the gas pump while helping the environment? Bring that on. Indeed, Cox Automotive Report tells us EV sales exceeded 300,000 units in the U.S. in Q3 2023. That’s record numbers.

So, what’s going on?

There are vexing factors swirling around this marketplace, colliding into a miasma of toil and trouble for auto manufacturers.

High interest rates = slowing demand

The current demand slowdown reflects the uncertain economy and the looming shadow of high interest rates (Will they go higher? Will they come down?) driving up the price of the already-expensive EVs. It’s a one-two punch. For most people, the decision to buy a car depends on the affordability of the monthly payment combined with other factors affecting their household budget. The vast majority of us are not rushing out to spend $80K on that Hummer. Maybe a more affordable model? Sure, but with sky-high interest rates driving up the monthly payment of already-expensive vehicles at the same time a pound of ground beef costs upwards of $8, people are taking a wait-and-see attitude. Maybe a gas-fueled car is a better bet right now.

Raw materials shortages for batteries = supply chain issues

As The Buzz EV News recently put it so succinctly, the raw materials that power EV batteries, namely lithium and cobalt, “aren’t exactly littering the landscape.” This, coupled with the fact that 90% of the supply chain for EV batteries runs through China, makes it difficult for U.S. auto manufacturers to realize efficient, profitable production. No one in the industry wants a repeat of the auto microchip shortage during the pandemic.

How is it all affecting auto manufacturers, and what can be done about it? At USCCG, we have a half century of experience dealing with the effects of supply, demand and the economy on many different industries. We work across the entire battery supply chain from mining to metals to battery manufacturing plants. Here’s how we see the issues playing out currently.

Auto manufacturers are doing a 180 (for now), so…

Based on the changing demand, automotive manufacturers are pulling back from EV investment right now and putting it back into traditional auto manufacturing. Even though the industry’s goal is still moving towards a 2030-2035 conversion to EVs, consumers are still buying gas-powered vehicles. Automakers need to maintain production to satisfy the demand.

…Demand and schedule planning is crucial, but…

Automakers’ backlogs need help — they have the orders and demand for gas vehicles, but are struggling to fulfill this demand and fill those orders. At USC, we happen to be the specialists in wrangling schedules, planning for demand when those sands keep shifting, and adding horsepower to teams just when they need it the most. It’s an all-hands-on-deck situation for auto makers, except…

…The skilled labor shortage is real

The new UAW contracts are driving labor costs throughout the industry, even in non-union facilities.  Couple that with the ever-shrinking skilled workforce, and it puts auto makers behind the eight ball just when they need to find and retain quality, reliable employees. At USC, we’ve been focusing on this issue, helping employers train their people on best practices and optimal processes. It’s crucial now, like never before.

EV issues aren’t going away. It’s time to reshore now

Yes, the demand is slowing. For now. But auto makers are still on track for conversion to electric vehicles, and the public still wants them. But these battery and supply chain issues are still plaguing the industry.

A few facts entering into this mix: The current Inflation Reduction Act included billions of dollars in government loans to fund EV battery plants in the U.S., and also included a $7,500 tax credit to people who buy U.S.-made EVs. It also allocated $7.5 billion to fund a network of charging stations around the U.S. (That, in itself is exciting for logistics nerds like us.)

Gov. Brian Kemp of Georgia is taking advantage of this trend, creating a push for EV jobs, major manufacturers including Hyundai and Kia located in the state, and pledges to make Georgia the “electric mobility capital” of the country.

TechCrunch+ says the U.S. is in an EV battery factory construction “boom” as a result of these initiatives. In 2019, there were just two battery factories here in the U.S. Today, 30 are either planned or under construction.

What does it all mean? It means auto manufacturers need to meet current demand while keeping an eye on the future. USC can help you do that. Contact us today.

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The automotive manufacturing industry has been traveling a strange and bumpy road over the past couple of years. The pandemic created a traffic jam in the supply chain. At the same time, demand for new cars dried up. Who was driving? Everyone was at home during the lockdown. And on the heels of that, interest in electric vehicles began to surge. According to research by the International Energy Association, the demand for EVs is expected to rise 35% by the end of 2023 after a record-breaking 2022.

What did it all mean for auto manufacturers? Demand for traditional vehicles lowered as demand for electric vehicles grew, forcing auto manufacturers to do a delicate dance of balancing the type of production they’ve always done with the new processes and systems needed to produce EVs. The moving target of demand coupled with shaky supply brought about inventory uncertainty — how much was enough, but not too much? And then, there was (and continues to be) the labor shortage, with seasoned workers retiring and younger ones not exactly flooding through the doors.

Improving processes is paramount for the automotive manufacturing industry now. Here are a few ways you can do that:

Lean Six Sigma. If there ever was a need for auto manufacturing process improvements like the ones Lean Six Sigma can produce, it’s now. LSS is the blending of two efficiency methodologies, Lean and Six Sigma. It’s a bit ironic, because the Lean methodology, which focuses on efficiency and eliminating waste, was developed back in the day by Henry Ford… or at Toyota, depending on who you ask. It got its start on the auto manufacturing line, with the intent of eliminating the “seven deadly wastes”: overproduction, waiting, transporting, processing, inventory, excess motion and defects. At USC Consulting Group, we’ve added an eighth waste. People. Specifically, not using them to their fullest, not seeing untapped potential in great workers, and not training and developing people to rise through the ranks. Lean is about eliminating waste to produce more product quickly and efficiently.

Six Sigma, the other side of the Lean coin, is about quality control. Minimizing flaws and defects. But it’s deeper than that, rooted in data. The goal is to improve cycle time while eliminating or reducing defects.

SIOP. It’s difficult to achieve careful, accurate planning for the future when the road ahead contains so many bumps. That’s why we take the usual sales and operations planning (S&OP) process to a different level by adding inventory to the mix. The goal is to look ahead, anticipating the inventory you need while also coordinating with sales, marketing, and finance to involve the entire organization in this process. A key to SIOP is using inventory as a strategic tool to help offset variation in either demand or production issues.

Predictive Maintenance. Yes, it sounds extremely basic, but we find that heading off trouble before it starts can eliminate the risk of bogging down your entire production line to fix what’s broken.

Skills Training. Investing in training is playing the long game, but in light of your best people on the line retiring and fewer people to take their place, it’s paramount. Training has advantages in addition to the obvious — your people being more skilled on the job. It also demonstrates in a very tangible way that you are committed to the growth and success of your employees. You gain loyal workers and create a pipeline for advancement. It’s a win-win.

Technology Investments. USC Consulting Group is not about coming in and asking manufacturers to invest in the latest and greatest technology in order to become more efficient. No, efficiency takes harder work than just installing a new machine. However, in some cases, it’s necessary to level up. Legacy technologies don’t have the same features and capabilities as newer models. And in the auto manufacturing industry, you’re dealing with producing an entirely new product with electric vehicles. It may be time to look at your technology and decide if it can take you into the future or keep you in the past.

Doing business in the automotive manufacturing industry is like driving a manual transmission. You are constantly shifting gears to keep pace with traffic – in this case, the consistent change of consumer demand. Operations consulting helps companies improve their processes and be prepared for what’s coming down the road. We help manufacturers become more efficient and profitable in this or any economy.

Is working with operations consultants an untraveled road for you? Please get in touch. We’d love to talk with you about it.

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