Batteries have owned the public's mind share when it comes to boosting performance and decreasing the cost of electric vehicles. And for good reason. The battery accounts for roughly half the total cost of an EV. Batteries have been undergoing significant innovations in recent years with startups such as QuantumScape and Ample looking into solid-state lithium batteries and modular designs.
General Motors' planned $650 million investment into lithium production company Lithium Americas further spotlights the increasing demand for EV batteries and the chemicals that make them a reality. A Reuters study in October found that automakers had committed $1.2 trillion to invest in batteries and other EV parts through 2030.
But for EVs to work at scale, we need to focus on another component — the powertrain.
There has been some innovation in this space, most notably with companies exploring the use of new materials, such as silicon carbide. But the truth is that a massive opportunity exists for startups to make a splash by coming up with solutions to the market's biggest barriers. Let's look at some of the challenges and the opportunities to address them.