Battery Electric Vehicles (BEVs) were rated the #1 most important automotive trend of 2017 by 50% of industry executives, according to the most recent Global Automotive Executive Summary. The trend, driven by increasing demand for environmentally responsible practices and products, is increasingly evident in the automotive industry. Tesla, for example, is dedicated to selling Electric Vehicles (EVs) exclusively, and there is a growing interest among existing big player automakers like Nissan and Chevrolet to release their own EVs. Because of the trend toward BEVs, battery housing and distribution has become a much more crucial function within the industry. This post explores the future of battery distribution as the automotive industry continues to evolve.
Initially, Electric Vehicle batteries (also known as lithium-ion batteries) were repaired and distributed solely by original equipment manufacturing (OEM) firms. For example, if the EV battery in Volkswagen’s e-Golf model was damaged, VW would handle both the repairs and distribution. Due to the increasing volume of electric cars that are currently on the road, in addition to those expected to be on the road in the near future, it is becoming more popular for companies like VW to partner with service centers that are willing to help house and distribute the batteries to dealerships for them.
Handling EV batteries is a highly regulated process. This is mainly because of the damage that can occur to people or property if the batteries are mishandled. Technicians must be hazmat-trained and receive a UN 3480 certification, which verifies that the respective parties are educated and experienced in how to manage lithium-ion batteries. A lithium-ion battery left in the heat and gone unnoticed could be the equivalent of a ticking time-bomb, due to the chemical's instability under high temperatures.
Limited shelf life and heavily regulated handling and battery distribution processes make an OEM’s choice of service center a critical strategic decision. Failure to choose a service center that not only constantly carries fresh inventory, but also has the capacity to expertly and responsibly retrieve, handle, and distribute EV batteries, may result in having to pay out tens of thousands of dollars in fines to the Department of Transportation, Environmental Protection Agency, or International Air Transport Association. It is imperative that both OEs and OEMs partner with a service center that is meticulous, responsive, and adaptable, in order to effectively and efficiently meet the needs of their consumers and end-users. The future of battery distribution relies on choosing the right service center.