Shortages or Bubbles? Here’s Why Automakers Are Chasing The Latest Battery Breakthrough

As more and more automakers jump on the electric car bandwagon, we’re starting to see increasing demand for automotive-grade lithium-ion battery packs. While companies which thought ahead and either planned their own production facilities (Tesla) or signed long-term contracts (GM) are seemingly insulated by the various battery shortages that currently exist, automakers which are newer to the plug-in car world are struggling to find decent supplies.

This, plus a drive to leapfrog Tesla and the rest of the competition to find the best electric car battery pack out there, means that we’re seeing billions of dollars plowed into electric car battery pack research.

Here’s why we’re heading to a bubble — and why so much money is being invested.

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