What Companies Benefit from Electric Cars?

The proliferation of electric cars will benefit a large number of industries. This includes battery, utility, logistics, and charging network operators.

Some of the biggest beneficiaries of the EV industry are ChargePoint Holdings and SunPower. In the coming years, their stocks will surge in price as the EV industry grows. This in-depth guide will analyze which businesses will grow from the EV industry and how.

Battery Makers

Battery manufacturers will be the main beneficiary of the electric vehicle industry. This makes sense because electric vehicles need capable but smaller batteries to cover large distances.

Battery makers will be swarmed with requests to ramp up production as demand increases. The coming years will generate as much as $60 billion worth of battery demand.

This will signal a major shift from crude oil. Battery makers have a lot of incentive to continue investing in R&D.

Their priority is to improve performance efficiency and battery storage capacity. This must not come at the cost of weight and size.

The burden on battery markets would increase ten-fold when automakers like Ford adopt electrification.

Unfortunately, the demand for batteries would outpace the supply. This isn’t a bad thing – for battery makers. The increased demand will drive up prices for batteries and benefit their industry.

Ford recently announced their plan to build several lithium-ion battery factories in Kentucky and Tennessee. They hope to double their battery production capacity by adding 129 GWh by 2025.

Growth prospects in the short and long term are looking great for this sector. Battery makers continue to reap high margins from their battery chemistries.

The government grants announced by the United States and EU are further aiding the industry.

Here’s a list of top battery makers;

  • LG Energy Solution
  • Contemporary Amperex Technology 
  • Panasonic
  • Samsung SDI
  • SK Innovation
  • China Aviation Lithium Battery
  • Gotion High-Tech

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The Challenges Faced by Battery Makers

This isn’t to say that everything is smooth sailing for battery manufacturers. They face many challenges in the long run.

As battery capacity increases, so does the need for metals. These metals will become a commodity, just like any other automotive component.

Businesses within the industry will also stand to gain from this growth. Examples include power management software and thermal management software.

This will force battery makers to partner with tier-one suppliers for automakers. In some cases, they may want to partner with the automakers themselves.

This would allow battery makers to create more value because as tier-one suppliers. However, they would need knowledge of the cars and foster systems integration skills.

This would require a hefty investment from battery makers. Most C-level executives will have to analyze if they have the necessary engineering resources.

These are challenges that continue to plague battery manufacturers. And at the time of writing, they haven’t tackled them.

For instance, how will the companies protect their intellectual property to prevent reverse engineering?

Companies that benefit from electric vehicles
Companies that benefit from electric vehicles

Guarding Trade Secrets

It isn’t uncommon for battery makers to distribute their proprietary processes across their factories. This is done to reduce the risk of someone learning their trade secrets.

These trade secrets can be communicated to competitors. Note that most battery makers haven’t heavily contested patents. However, this may change as revenues grow and the stakes increase.

This will force battery makers to strategize how they will defend their intellectual property carefully.

Another challenge is offering warranties. Battery makers may not have the financial capacity to offer warranties. On the other hand, car makers are reluctant to take on this responsibility.

Samsung, NEC, and Johnson Controls, may have the financial strength to provide the service. The after-market for EVs is also slightly.

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Mining Companies

The metals that are being mined are in incredibly short supply. Forecasts revealed a nickel supply deficit of 128,000 tones.

The world will see a 1800-tone shortfall of refined combat. This means that metal supplies for battery makers would be tight.    

And as demand ramps up, lithium will also hit a 30,000 tone shortage by 2025. This shortage presents a major risk to the widespread adoption of electric vehicles.

However, the ensuing competition will enable battery makers to profit greatly. Supply

chain snags will force automakers to settle for prices dictated by battery makers.

Mining stocks are already benefiting from the massive demand for cobalt and lithium. Many countries are setting bans on combustion engines.

This will stimulate a strong demand for metals as the combustion ban draws nearer.

Australia’s mining industry seems to be well positioned to benefit from EVs. The country has massive reservoirs of nickel, lithium, and nickel – which are in short supply.

A surprising beneficiary of the EV evolution is the copper industry. EVs use copper more than conventional cars.

For perspective, the projected 30 million EVs in 2030 will require 2million-tones of copper. Copper will be needed for maintaining infrastructure and charging ports.

This will increase the overall demand for copper by 12 to 15%.

The surge in demand and challenges in production will push copper prices. Many battery makers will be forced to look for alternatives.

However, there was no direct substitute for copper at the time of writing. Researchers are hoping to make breakthroughs by swapping aluminum in some applications.

But the ongoing innovative battery technology is at a nascent stage. Experts believe that the demand for copper will double in the coming decade.

Mining groups are already making aggressive moves as they sense the spike in demand. The Zijin Mining Group, for example, acquired a 50.1% stake in Tibet Julong Copper.

This merger cost nearly $548m to bolster their reserves.

Note that many mining companies will look for strategic partnerships to acquire copper. A key challenge is to continue searching for more copper. 

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Utility and Infrastructure Providers

Electric cars, vans, and trucks will require a sustainable way to refuel. This will be made possible with the help of the grid. Most EVs will not get very far without ample charge for their lithium-ion batteries.

Experts believe EVs will require nearly 550 TWh to 850 TWh of electricity in 2030. This major spike in electricity usage is a small share of global electricity consumption.

EVs would require more than three times the electricity consumed in California. Electric utilities and their suppliers will also benefit from EVs.

A major infrastructure provider, Siemens is set to provide more than 1 million EV chargers. The company has supplied nearly 75,000 chargers in the past decade.

The company decided to increase production based on the $1 trillion infrastructure bill. However, Simeon’s contribution will barely meet the global need for charging infrastructure.

This would require millions in investments and a giant leap of faith from governments.

In any case, the EV industry will create an additional revenue stream for utility companies. 20% of EVs in the market would require 2% of total electricity demand.

EVs may not require steep investments from providers if they are charged at night. The charging of EVs will help providers profit from carbon-abatement taxes.

The companies could realize tax incentives by capturing their emission credit.

This would require EVs to charge exclusively at night. Charging at other times during the day may overwhelm the existing infrastructure.

Utilities would have to invest in smart infrastructure to keep up with EVs. EV owners are also expected to overwhelm chargers and blow out transformers.

This would reduce the reliability of the infrastructure and require expensive investments. To meet the challenge of charging vehicles, utilities will have to invest in smart infrastructure.

They may also work with automakers to provide a more seamless experience to drivers. When someone buys a new EV, the utility provider should install the appropriate equipment in their homes.

Businesses that benefit from electric vehicles
Businesses that benefit from electric vehicles

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Top Charging Station Companies

Charging stations will play an important role in the years to come. Let’s take a look at companies that are leading this business.


ChargePoint has the largest network of charging stations with a network around the world. It grants users access to charge their cars with a single account. The company has over 60,000 EV charging stations and delivered over 100 million charges.


ABB has one of the most advanced charging station infrastructures in the world. The company offers solutions of 3 kW and 22 kW. Their fast chargers offer more than 350 kW in capacity.

Their charging stations have been used to power heavy dirty buses, trucks, and commercial fleets.


Siemens is no stranger to charging companies and offers high-end solutions. They continue to innovate in high-performance charging infrastructure for all types of EVs.

Siemens is known for designing advanced chargers with improved performance and lower costs.


Tesla maintains their own network of chargers. They have over 30,000 Tesla Superchargers and 4,500 charging station sites.

Their charging solutions are specifically designed for Tesla vehicles but may be used with others.


Shell continues to invest in charging infrastructure and is pivoting away from fossil fuels. They are changing the business of retail charging and charging on the go.

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The Transportation Industry

In the coming years, most of the transport will be electric. This will be beneficial to the industry in many ways.

Green vehicles often require less maintenance than conventional cars. This saves funds for the local government so they can channel them elsewhere.

Cities will require higher capital costs to invest in electric buses. However, these businesses will provide them with significant economic benefits.

This is because of reduced field costs and maintenance, especially when their mileage increases. Cities can also work with companies to provide them with electric bus grants.

The City of Denver plans to use 100% electricity for public transit by 2050. Los Angeles also plans on using 100% electric public transit by 2030.

According to the Chicago Transit Authority, the savings for electric buses is $300,000.

Governments can also work with schools to electricity school buses and provide EVs to staff. Cities may also partner with companies to install DC fast chargers at designated charging hubs.

The popularity of EVs will also mean more revenue for manufacturers of electric bikes. This may incentivize the public to e-bikes for transportation.

The result is increased demand for companies that sell electric bikes.

Electric Bike Makers

As electric vehicles become more popular, people would be more inclined to invest in electric bikes. Modern electric bikes have come a long way in the past decade.

Their battery systems make them suitable replacements for cars that cover shorter distances. High-end ebikes can be used to make errands and even transport loved ones.

Note that e-bikes are only feasible solutions for covering distances less than 15 miles away. The best part is that electric bikes are not very expensive.

Prices for electric bikes start from $1,000 up to $10,000. This is a fraction of what a high-end electric vehicle would cost.

Moreover, electric bikes have substantial environmental benefits compared to electric cars.

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Finally, the biggest beneficiary of the industry would be automakers themselves. Automakers who have invested their time and money in making EVs will stand to gain.

Major names like Tesla and Ford are already offering their offerings. Most automakers will have to keep up or risk enormous losses.

Electric cars are no longer a novelty and are here to stay. There is no denying that they will become more popular in the coming years.

Automakers can also increase their revenue by leveraging micro transactions. This controversial business model will allow automakers to continue innovating for years to come.

BMW, for instance, is leading the market in subscription-based services for a host of features. These include a heated steering wheel, driver safety, beam-assist headlights, and others.

Wrapping Up

So there you have a list of industries and companies that will benefit from EVs. The coming years will be crucial for the growth of the industry.

Businesses must jump on the bandwagon and not resist the change. Investors may want to buy stocks for some of these companies when prices are low.

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