On the other hand, traditional carmakers skipped the development and resorted to off-the-shelf parts from third-party suppliers. This allows for more flexibility and shortens the development time, but comes with its downsides. Third-party suppliers are less focused on electric motors development, and they might have hard times meeting high-volume demands from their many clients. This is obvious by how hard it is for traditional carmakers to ramp up EV production.
Information service provider IHS Markit analyzed several automakers’ electric motor sourcing strategies and their study confirmed the trends described above. There are variations, nevertheless, with Rivian being the notable exception as the only EV startup to outsource its electric motors. But even Rivian started to develop its own electric motors, and the analysis shows this is a growing trend in the industry.
According to IHS Markit, there will be a steady shift toward electric drive insourcing in the coming decade, driven in part by the U.S. traditional carmakers. Ford and GM are among the carmakers to outsource most of their electric drive units at the moment. It makes sense to move towards insourcing in the future.