What Is The Transition To EV Factories? - EV Motors

What Is The Transition To EV Factories?

The EV revolution will soon shake the auto industry to its core. Nothing is denying that. However, it is vital to highlight everything that is going to change during the transition to EV factories.

Transition to EV factories producing EV
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Some of the major changes that the automotive segment is going to experience include:

Lesser Need For Spare Parts

While conventional automobiles are laden with parts and components, EVs are relatively free from them.

In comparison to more than 1,000 parts that an average vehicle has, the average EV has less than 20.

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Some of the major automobile parts that are missing from the EVs include but are not limited to:

– Fuel Injectors;

– Valve terrains;

– Exhaust Systems;

– Transmissions;

– Radiators.

When such vital components are absent from a vehicle, they don’t require replacements. This lack of demand will affect the billion-euros automotive spare parts industry. 

Lesser Number Of Jobs

As the number of components in vehicles decreases, so will the workforce required to produce them in EV factories.

This means that factories producing EV parts will require less human intervention. As a result, fewer people will be needed. Thus, tens of thousands of people employed in the segment will be laid off.

Relatively Low Involvement Of Auto Experts

It is not just the labor class whose jobs are at risk due to the EV revolution. Rather experts of the automotive segment will also have lesser involvement in future decisions. 

Thus their employment opportunities will also take a hit.

Brownfield Or Greenfield For EV Production?

Companies will need to establish EV factories to produce electric vehicles. As a result, they will have to choose between brownfield or greenfield options.

Benefits Of The Brownfield Approach

I believe that most companies will go for the brownfield approach. The major contributors to this decision will be:

Utilization of Existing Facilities

Expanding businesses will be able to use existing facilities thanks to the brownfield approach. This will have two major advantages:

– This approach will be quicker to implement than setting up an entirely new system for EV factories. 

Everyone will want to be the winner of the race to see who can deliver the most EVs first. As a result, the brownfield approach can provide faster results;

– It will be relatively healthier for the planet because establishing an entirely new factory will necessitate significantly more resources and raw materials, which will have an impact on the climate.

Furthermore, the huge construction activity is also likely to affect the ecosystem.

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Employment Of Existing Workforce

Brownfield approach also has the added benefit that the new company can utilize the workforce of the past employer.

This means that a limited number of families will be displaced. 

Benefits Of The Greenfield Approach

Using the Greenfield approach will also have its benefits. Some of which will be:

Dedicated Facilities For EV Production

When a dedicated factory is built from the ground up, everything is planned accordingly.

Transition to EV factories drawing
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Refined Operations

The overall system will be much more refined in terms of operations than the arrangements that such factories would otherwise have to make for using an existing system.

Final Verdict

While the EV revolution is still years away, major corporations have already begun to plan for the changes that will occur.

In such cases, seeking the best possible options is critical because otherwise, the company may be unable to compete with the cutthroat global competition.

Only time will tell whether most companies choose to build their EV factories on Brownfield or Greenfield sites.

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