![]() ![]() While China is the world leader in gigafactories, Europe is set to be home to a much larger share of these facilities by 2030. The research shows that in 2020, there were 66 plants with an average capacity of 6.3GWh but by 2030 this will have increased to 155 plants with an average size of 26.4GWh. These gigafactories will be significantly larger than today and more dispersed. GlobalData research estimates that between $106bn and $177.6bn is set to be invested in gigafactories worldwide between 20. “With the rush to establish battery gigafactories ready for the EV revolution, a valuable source of FDI is being injected into economies slowly emerging from the damage wrought by the Covid-19 pandemic,” according to Calum Macrae, head of automotive research and analysis at GlobalData. This has forced the hand of major vehicle manufacturers to eventually abandon ICEs and switch entirely to EVs. While traditional carmakers were tentative at first to abandon ICEs completely, Legislation introduced over the last couple of years by a range of national and sub-national governments around the world has sought to phase out all diesel and petrol vehicles over the next two decades. Telsa produces both batteries and vehicles but most other major vehicle manufacturers are establishing supply arrangements with battery specialists. Major car manufacturers have created industrial clusters around their sites, as ICEs require a high volume of specialist parts which are supplied to vehicle manufacturers for assembly.ĮVs contain far fewer specialist parts but the inefficiencies of transporting batteries, due to their size and weight, means gigafactories are also being located close to existing automotive manufacturing clusters. The automotive sector accounted for 4.5% of all FDI projects globally in 2020, according to the GlobalData FDI Projects Database. The switch to EVs is the biggest ever disruption to the automotive industry, which has historically been a significant source of FDI globally. The presence of gigafactories in a location can support various associated industries and supply chains.Ĭountries with existing automotive industries are desperate to attract this investment, seen as vital to the survival of vehicle manufacturers who are under legislative pressure around the world to abandon internal combustion engines (ICEs).īut attracting this investment requires a range of investment promotion tools. Gigafactories are becoming a major driver of foreign direct investment (FDI), as these modern production facilities are central to global efforts to transition the energy sector away from fossil fuels to avoid climate catastrophe. The ‘giga’ part of the word relates to gigawatt, as the production capacity of the factories is typically expressed in gigawatt hours (GWh). Tesla coined the phrase gigafactory to refer to factories producing electric batteries at huge scale, primarily for use in electric vehicles (EVs) but also for a range of other renewable energy storage applications. ![]() So what is a gigafactory, and why are they attracting so much investment? Gigafactories are becoming a major driver of FDI ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |