Is battery-making a good investment?

Its ratio of capital spending to sales rose from 10% in 2020 to almost 30% in the 12 months to March. In contrast to more mature businesses with high upfront costs, such as semiconductor manufacturing or shipbuilding, long-term returns on investments in battery-making are hard to predict. The technology is evolving fast.

Is battery manufacturing inevitable?

The inevitability is comforting for bosses in industries from mining to chipmaking. Not, though, in battery manufacturing. Anticipating booming demand for electric vehicles (EV s), since 2018 companies around the world have ploughed more than $520bn into battery-making, according to Benchmark Mineral Intelligence, a research firm.

Is battery reconditioning a profitable business?

The battery reconditioning business can be lucrative for maximum profits.

Is the battery industry facing a bust?

But not sufficiently to entice motorists to go electric. And so the industry is facing a bust without ever having had much of a boom. On July 7th SK On, a giant South Korean battery-maker building factories in America to supply Ford and Volkswagen, said it was in a state of “emergency management”.

Can EV batteries become a normal industry?

One way to solve this problem—and turn battery-making into a more normal industry—would be for companies to invest in inventing cheaper batteries rather than making pricier ones at greater scale. Another solution is freer trade. Prices in China, where most of the world’s EV batteries are manufactured nowadays, are down sharply.

Is CALB a better battery manufacturer than CATL?

CATL and CALB are the only two battery manufacturers in the industry that rank in the top five in both the lithium iron phosphate battery and ternary battery markets. BYD's batteries are self-supplied, so it can be said that CALB is the real competitor of CATL. In the ternary battery market, CATL's market share exceeds 60% and is still increasing.