The whole world is talking about electric cars and autonomous driving. Of course, it remains to be seen what the future will actually look like. In detail, there are still too many unknowns at play – from power supply to legal issues.
New clean combustion engines will also play a role as hybrids. One thing is certain, however: in the mix of offerings, all vehicles will probably be electrified to a greater or lesser extent.
No electric car without automotive suppliers
Today’s vehicle is becoming an electric car. A challenge for automotive suppliers, because they have to adapt to completely new functions, components and systems. Even if it is still in its infancy, the electric car is already forcing automotive suppliers to position themselves.
No electric car without automotive suppliers: the shares of manufacturers of key components have considerable potential. But as the industry changes, the balance shifts. This is how new names keep popping up with the battery producers and their raw material suppliers. And some who have been further down the supply chain are increasingly moving to the forefront.
Take semiconductor manufacturer infineon, for example. The dax company is now regarded as the central supplier of control mechanisms, chips and sensors that make e-mobility and autonomous driving with assistance systems possible at all. Even simple electric cars need twice as many semiconductors as conventional vehicles.
The automotive industry accounts for a good half of the Group’s sales. tesla also drives with infineon chips. Its success and the electric car quota in china are playing into the group’s hands. In addition, the chips ensure that batteries can be built cheaply, are compact, have a long range and can be recharged quickly.
Ingredients for the battery
In addition to copper, cobalt and graphite, the energy storage systems require above all lithium. The chemical element is used in a wide range of applications and plays a key role in battery systems, where it accounts for more than 30% of the total. With demand for lithium carbonate soaring, the US company albermarle is the dominant supplier. The chemical group expects to claim a good half of the growth market for itself.
The swiss raw materials giant glencore is playing a decisive role in the increasing demand for cobalt and copper. Batteries will account for around one-fifth of global demand for cobalt in the foreseeable future. Glencore is one of the largest providers.
The Australian mining company syrah resources, in turn, is one of the main beneficiaries of the graphite boom. In every battery, the anode, or roughly speaking the positive pole, is largely made of graphite. Syrah resources owns one of the most important graphite deposits and is of interest to institutional investors.
Components, systems and complete drives
An exciting supplier that is not yet on the radar of many is the mechanical engineering company aumann from beelen near munster, Germany. MBB’s subsidiary is growing thanks to its focus on electromobility and has been listed in the prime standard of the frankfurt stock exchange since march of this year. The IPO was a resounding success. Profit growth alone is estimated at 34 % for the next year. aumann is on course for the future with technologies for the production of electric motors.
In addition to the companies mentioned, a number of others also play a role. In semiconductors, for example, nvidia, but also hella, which is commonly associated with lighting systems. With this in mind, the company from lippstadt has developed control units, sensors, actuators and assistance systems for steering, parking aids and lane changing.
Apart from that, of course, players such as bosch, continental or valeo are also on board. Bosch, which has long built components for e-cars, now wants to offer a complete drive system. The target group includes startups that want to quickly bring their own electric cars to market. The company is thus moving away from its previous focus on BMW, Daimler and VW. Bosch is the world’s largest supplier in terms of sales, but it is a limited liability company (gmbh).
Among other things, the Continental corporation is working on new vehicle platforms, such as wireless charging, a digital cockpit, and braking and air suspension systems. The Group also works closely with leading automakers on intelligent transport systems and automated driving systems. The paris-based supplier valeo is also successfully active in this area. Whereas the valeo share price was around €3 in 2009, today it stands at almost €60.
Valeo: a stock you should get to know automotive supplier can offer investors opportunities. We have analyzed valeo’s share in detail for you in this article. ‘ read more