Cheaper batteries, greater ranges, and faster charging. These are the three challenges that the industry continues to face to make electric cars more popular. Tesla had found a way to stay years ahead of the competition. The special material silicon carbide (SiC) played a key role in this. However, the main supplier China controls the market and consequently the price.
What is Tesla’s secret? A crucial component is silicon carbide (SiC). This material, made up of silicon and carbon, is characterized by its extreme hardness and excellent electrical properties. An important component in this is the inverter. According to Idtechex, an inverter ensures that the energy from the battery is converted into a form that the motor can use.
As Tesla was one of the first companies in the automotive industry to rely on silicon carbide, the first models of American electric vehicle production were able to stand out sharply from the rest of the market.
How has silicon carbide given Tesla an advantage? Because silicon carbide works so efficiently, these components can be made smaller, lighter, and more powerful. This means: Tesla’s cars go further on a charge, and the batteries last longer. The use of silicon carbide in power electronics allows Tesla to enhance the efficiency of the vehicles and reduce the size of the components. As STMicroelectronics, a supplier to Tesla, reported to the New York Times , silicon carbide allows for a range increase of up to 10 %.
Who else uses silicon carbide? The race for security of supply with silicon carbide has accelerated significantly, as more and more car manufacturers recognize the advantages of the material. Wolfspeed, a leading semiconductor company, has established what is known as the “Silicon Valley of Silicon Carbide” in the US state of New York and supplies General Motors as part of a significant supply agreement (via NY-State).
Renault’s electric division Ampere has also joined this race and entered into a partnership with STMicroelectronics to secure the supply of silicon carbide in the medium term, as electrive recently reported. Renault plans to manufacture inverters for electric cars that can charge batteries with 800 volts from 10% to 80% in 15 minutes – a potential revolution in fast charging. BYD, Mercedes, Volkswagen, Jaguar Land Rover, and Lucid are also collaborating with silicon carbide producers to enhance the efficiency of their electric vehicles.
China plays a crucial role again
Why is China so important? China is a leader in the production of silicon carbide and has significantly increased its market share in recent years. Currently, nearly 42% of the world’s SiC substrates come from China – and this number is expected to rise to around 50% by 2026 (via AllAboutIndustries).
The rapidly growing silicon carbide market, led by China, is facing a price war in which new companies are capturing market share through low prices. At the same time, the long-term growth prospects remain positive with an annual increase of 11.6% until 2032.
Is there a turnaround? Although Tesla was a pioneer in the use of silicon carbide, the company has announced plans to reduce the use of silicon carbide chips in future vehicles by 75% without sacrificing performance. This decision has surprised the semiconductor industry and led to losses in stock prices for SiC suppliers, as Elektronik Praxis reported.
Tesla plans to reduce its dependence on expensive silicon carbide and lower production costs through the use of alternative technologies. This could influence the existing demand for silicon carbide in the electric vehicle industry and further intensify the competition among suppliers.
Whether other manufacturers will also take new paths remains to be seen. Unlike other electric car manufacturers, Tesla still has a certain lead to try out new alternatives.
Electric mobility is rapidly changing through innovations like silicon carbide. Leading the way are colorful figures like Elon Musk. Sometimes unusual connections arise between two leading minds of tech companies. You can read just how unusual they are here: He founded Google and wanted to entrust Elon Musk with his fortune of 110 billion euros – today they no longer speak to each other.
