Competition will increase as battery manufacturing equipment is in high demand to meet the growing popularity of e-mobility, such as Electronic Vehicles (EV).
FREMONT, CA: New gigafactories are planning the production of battery equipment to capitalize on the growing demand for e-mobility by 2025. Companies are planning their buying strategies now, securing supply contracts. Stakeholders and investors are increasingly pushing for sustainable development of battery equipment, giving suppliers access to public and private funding. Competition among equipment suppliers will increase. Organizations must carefully evaluate their current operations and capabilities and develop effective plans.
Equipment firms wishing to expand in the battery cell equipment industry should consider the following capabilities required to compete effectively.
Starting organically: Companies should assess which of their current skills can be applied to battery production processes before selecting the opportunities to pursue. Building organically calls for enough managerial focus and funding to shorten the time to market.
Acquire: Manufacturers must find areas in the market their competencies can flourish. They can acquire all or part of existing battery manufacturing equipment companies. Acquired firms are chosen for their desired competencies and resources and those that successfully integrate into the existing business.
Strategic partnerships: Battery equipment manufacturers can collaborate with other companies to boost their existing competencies. Companies can partner with suppliers of cell manufacturing equipment that want to establish a local footprint and increase its productivity.
Joint ventures: Companies of complementary competencies can enter into a joint venture to pool the resources and skills they offer to form a new entity.
Scout opportunities: Equipment manufacturers keep themselves updated on new industry trends, opportunities, and market research. They pursue strategic alliances and take part in the research.
Customer Access: Manufacturers keep themselves informed of customers' requirements and specifications in demand.
Partnerships: Organizations are open to partnering with similar firms and working with customers to produce battery equipment catering to specified needs.
Product understanding: They gather relevant information on battery cell technology and the latest innovations, increasing their offerings' scope to align with customers' specifications.
