Signs of Supply Shortage in Car Semiconductors Spreading to Batteries

[Asia Economy Reporter Ki-min Lee] As the shortage of automotive semiconductors prolongs, the supply shortage of semiconductors for automobiles is spreading to electric vehicle batteries. Electric vehicle battery companies and parts manufacturers have managed so far by securing a large number of semiconductor components related to the Battery Management System (BMS) installed in electric vehicles, but since this month, the semiconductor parts shortage has worsened, tightening the supply of BMS components. Electric vehicle battery parts companies are currently checking BMS component inventory on a weekly basis, negotiating supply volumes with semiconductor makers, and even exchanging semiconductors with competitors to secure supplies.

According to the industry on the 13th, battery companies and parts manufacturers are recently focusing on securing semiconductors to be installed in BMS, a key component of electric vehicle batteries.

BMS monitors the voltage, current, and temperature of the Battery Pack to maintain it in optimal condition, predicts battery replacement timing, and detects battery issues in advance to notify the driver, making it an essential product for electric vehicles. BMS includes more than 300 semiconductors, including products from NXP, Renesas, Infineon, and Texas Instruments, which have recently gained attention due to the automotive semiconductor supply shortage.

While battery companies sometimes design and produce BMS themselves, typically, parts manufacturers outsource the production of designed products. The produced BMS is supplied to automakers along with electric vehicle batteries. Therefore, not only battery producers such as LG Energy Solution and SK Innovation, which manufacture electric vehicle batteries, but also parts manufacturers are on high alert regarding the semiconductor supply shortage. Currently, domestic BMS manufacturers, who usually secure more than two months' worth of inventory, are reported to have about one month's worth of stock. A representative from a major parts company that exclusively supplies BMS to global automakers said, "If the semiconductor shortage continues, a shortage of related inventory is expected in the future, so we are constantly negotiating with (semiconductor) companies and adjusting supply volumes."

Even smaller companies are bringing in semiconductors on a weekly basis or exchanging semiconductor supplies with companies producing the same automotive semiconductor products.

If the current situation continues, it could negatively affect electric vehicle deliveries and new model launches, highlighting the urgency of semiconductor internalization. Global automakers, including Hyundai and Kia, which launched the Ioniq 5 and EV6 respectively, as well as Mercedes-Benz, BMW, Audi, and Volkswagen, have declared this year as the inaugural year of electric vehicles and plan to launch various new models.