Silicone key to growth in regulation-driven EV markets

London - Electric vehicles (EVs) use four times more silicone than a combustion engine vehicle and continue to present huge potential growth opportunities for suppliers of these high-end materials.

That’s according to Wacker’s director global segment management industrial solutions Julia Henn, delivering an online presentation titled ‘Silicones – the key to e-mobility’.

While acknowledging trends to make parts smaller and to reduce the number and the amount of [materials] used, Henn said: “We believe this [market] will grow strongly, which is a positive trend for us.”

For example, she pointed to the area of battery safety, where “solutions have not been finalised yet” as well as trends to make cars more connected and autonomous.

But more significant is the fundamental worldwide shift to e-mobility, which Henn described as “a mega trend in society and a game-changer” for the automotive industry and its suppliers.

The global market for EVs is “very dynamic with the supply- chain realigning at the moment,” according to the presenter.

But, she added, the current steady pace of growth will accelerate significantly from 2030, as the market moves from intermediate-stage plug-in hybrids to full-scale adoption of battery electric cars.

Further developments will really depend on factors such as regulation, consumer behaviour and technology developments – all of which can vary significantly by region.

China, which is the largest and highest growth market, has been strictly regulated and subsidised up to now, according to the Wacker expert.

This situation, said Henn, has led “major domestic OEM car makers – the so-called new force – to develop very economic solutions and battery platforms.” For instance, she cited the Wuling Hongguang mini EV, which has been sold at a remarkably low price of Euro4,000.

While Europe, the second largest market, has seen less regulation, governments and carmakers there have set very clear strategies for the development of e-mobility. For instance, noted Henn, Volvo has announced targets to be fully electric by 2030.

Read the full report in the March/April issue of European Rubber Journal magazine or online featured content version via the 'Focus' tab on the ERJ homepage.