Global Research 19 November 2018 Q-Series Equities Tearing down the heart of an electric car: Can Global batteries provide an edge, and who wins? Automobiles Patrick Hummel, CFA Analyst
[email protected] Battery is key to success of EVs – UBS Evidence Lab tore down all cell types +41-44-239 79 23 The battery is the most expensive and most critical part of an electric car (25-40% of Tim Bush the vehicle's total value today). Winning in batteries means (1) turning electric cars into Analyst a true mass-market technology and (2) having a significant competitive edge – this
[email protected] holds true for both battery makers and auto OEMs. To find out who is best positioned +852-2971 6113 to win, UBS Evidence Lab performed a unique teardown of the leading battery cells for Paul Gong electric vehicles (EV) from Panasonic/Tesla, LG Chem, Samsung SDI and CATL. The Analyst findings have a widespread impact on our view about auto OEMs, battery makers, the
[email protected] chemical and mining sector as well as the outlook for global battery commodities. +852-2971 7868 Kenji Yasui What were the biggest surprises? Analyst We found out that Panasonic cells produced in the Tesla Gigafactory win the cost
[email protected] competition, with a cell cost of $111/kWh – a ~20% lead over second-placed LG +81-3-5208 6211 Chem. Compared with our findings from the Model 3 teardown, Tesla’s battery turns Taewoo Lee out to be $37/kWh or ~$2.8k/$2k cheaper per vehicle (long/short-range versions).