Technology based industries have always been known to be disruptive in nature, with Research and Development as its core. This keeps the manufacturers at their toes to stay ahead of the curve and gain competitive advantage in their markets. Electric Vehicle industry is one such industry which is evolving at great pace and news of product launches with better battery tech, motor specs or overall performance are popping up in different corners of the world at great speed.
Technology partnerships are playing a key role for all stakeholders in the electric vehicle industry to help cut the distance of technological chase. They allow the manufacturers to use the best available tech and bring better products to the market faster. Here the reasons why technology partnerships for EV industry are important:
Fast evolving standards and improving efficiencies-
Electric vehicle OEMs today can save time and effort by forging strong relationships with technology companies. Recently, we have seen a large push towards further-reaching and better standards. GB/T and ChaDeMo standards merged in to offer a much more global charging standard. Similarly, for batteries, lead acid have become obsolete while lithium batteries evolved to be the norm. Today, LFP has taken over NMC chemistry as the preferred choice for high performance vehicles. Soon, Solid state batteries would replace Lithium batteries completely. Hence for a vehicle manufacturer, investing in battery technology would not be as efficient as having partnership with a battery maker.
Focus on core competencies-
Any company has its core competencies. This includes the human resources, technological capabilities, experience and skillsets that the company might have in some areas. If that organization in not strong in technology of a component, it would be much more efficient to work with partners rather than reinventing the wheel. Complementing partnerships can lead to success for both partners as they can focus on their strengths and combine them for a greater output.
Win for all-
A manufacturer not only gets the advantage of going to market faster by not reinventing the wheel (which takes time and investment in research) but combined competencies can lead to better outcomes. The owner of the technology earns back on its investment and gets access to newer markets. Consumer at the end gets a better product. Hence, working together and forming partnerships is a win for all.
Aurora Ventures can help you to find technology partners in Electric Vehicle industry from China. We offer supply chain consulting for EV industry. Reach out to us at firstname.lastname@example.org