Bosch Doesn't Have Plans to Produce its Own Battery Cells, Claims it's too Risky

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【Summary】Bosch, a German engineering and electronics company isn’t interested in developing its own battery cells, as it’s a risky business venture.

Original Vineeth Joel Patel    Mar 10, 2018 9:30 AM PT
Bosch Doesn't Have Plans to Produce its Own Battery Cells, Claims it's too Risky

Robert Bosch is one of the world's largest automotive suppliers. The company has made some moves to solidify its place in an autonomous future, which includes partnering with Daimler on an autonomous parking garage and acquiring ride-sharing startup SPLT. But when it comes to another major aspect of the auto industry, electric vehicles, Bosch really interested in developing its own technology. 

Producing Battery Cells Is Too Risky

According to a report by Automotive News, Bosch isn't interested in developing its own battery cells, as the company claims the investment that's necessary to do so is too risky. 

As the outlet claims, Bosch's decision won't be popular in Europe, as politicians and automakers in the country have called for companies to create a regional battery cell producer together to take on Asian companies. 

Bosch reportedly looked into making its own batteries that it could sell to automakers and technology companies. But then decided against it, as the brand decided that it would be too difficult to make a product that was more affordable and better than offerings from rivals Panasonic and Samsung. 

"Given dynamic external market factors that can only be predicted with difficult, it is unclear whether this investment would pay off for Bosch, and when," said the automotive supplier in a statement last week. 

Asian Companies Are Pulling Ahead

At the moment, there are a few European companies that supply batteries for electric vehicles. In January, Scanai made it clear that it wanted to become one of the largest battery cell manufacturers in the country with a plan to rival Tesla's Gigafactory in Nevada. But that will obviously take some time. And it will take time for other players to emerge, as well. That has left the window open for Asian companies to thrive. 

Tesla, one of the most prominent electric automakers in the world, announced a plan to create more partnerships with battery suppliers. The brand gets its batteries from Panasonic for its vehicles, but the plan would be to partner with another company, specifically one from South Korea. LG Chem, Samsung, or SK Innovation are part of a short list of power cell suppliers Tesla could go with. 

Despite not having any plans to create batteries of its own, Bosch will still be a player in the segment, as the supplier plans to work with cell suppliers to lend a helping hand in the development of tech for hybrids and electric vehicles. The company would also buy cells from others. 

"To be a significant player in electric mobility we don't need to produce the cells by ourselves," said Rolf Bulander, head of mobility solutions at Bosch said on a conference call with Automotive News. 

Understandably, Bosch would no longer continue its research into battery-cell technology and would dissolve the Lithium Energy and Power GmBH & Co. KG joint venture for lithium-ion technology, reports the outlet. 

via: Automotive News

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