Gold rush mood among e-mobility suppliers

Gold rush mood among e-mobility suppliers

Vitesco Technologies, developer and manufacturer of modern drive technologies for sustainable mobility, was able to book orders in the electrification business worth around 10 billion euros in the last two half years alone. And it continues: The company recently booked a major order in the field of thermal management from a global customer with a total volume of more than one billion euros. The thermal management system is used to regulate the optimal temperature range for high-voltage components of battery-electric vehicles.

At the Capital Markets Day 2022, the listed company presented its current strategy up to 2030 to investors and analysts. According to Vitesco, electrified vehicles will account for more than 70 percent of global passenger car production by then, with battery electric vehicles (BEVs) making up the largest share. “A large part of them will have components from Vitesco Technologies on board: e-axles, battery management systems, inverters and many other products,” promises CEO Andreas Wolf. “We are talking about strong organic growth in the area of ​​electrification of an average of 40 percent annually until 2026,” expects CFO Werner Volz.

According to experts, the battery-electric vehicle will continue to be characterized by supplier parts, particularly in drive technology, with fewer but higher quality components. Battery management systems and inverters in particular will come much more frequently from suppliers such as Vitesco Technologies in the next few years. According to company estimates, suppliers' share of manufacturing for battery management systems is expected to increase by 10 percentage points to around 65 percent and for inverters from 50 to around 70 percent in 2030. It is expected that around 40 percent of electric motors will be manufactured by suppliers in 2030.

With the help of strategic partnerships, Vitesco Technologies would like to bring even more efficient e-mobility solutions to the market in the future. Partners include Infineon and Rohm Semiconductor, which offer Vitesco access to more than 50 percent of the global silicon carbide wafer capacity needed for semiconductor manufacturing. On the customer side, Vitesco was able to win the Renault Group, a long-standing major customer, as a close cooperation partner in July. In the future, the two companies will jointly develop highly integrated and compact power electronics.