Smart Factories: How to EV-olve into a Sustainable Automotive Industry

The environment has changed, and it is up to us to evolve our technology to counter climate change. It’s no secret that to reach the global climate goals, transportation has to become electric. But did you know that there's a whole new industry being born? The carbon-neutral automotive industry. 

Is it really a matter of evolve or die? Read our recap of Momentum Talks or watch the highlights below!

In this episode our host is Amanda Teir, and the guests are:

• Peter Bryntesson, CEO of Scandinavian Automotive Supplier

• Johan Dahlström, Lecturer at University West and Smart Factory expert

• K Arunagiri, Business Line Manager at Isra Vision 

According to a survey by the Scandinavian Automotive Supplier, 83% of member companies saw a major shift in product portfolio by 2030. The electrification shift is crucial to the automotive industry. It can be compared to how the emergence of MP3s changed music sharing and buying. 

One key driver of transformation is the shift in the business model. In the future, it’s all about purchasing transportation services rather than vehicles themselves, leading to lower volume but higher turnover. Another crucial factor is sustainability. In the future, companies must be sustainable to attract customers, investors, and employees. However, merely supplying components for electric vehicles isn't sufficient; the entire automotive industry must become climate-neutral. 

In order to survive, the component suppliers must focus on three key areas: 

• Sustainability

• Digitalization

• Electrification  

To be successful in these three key areas, a new type of competence and a completely changed business model are essential. In addition, policymakers are at the center of facilitating the electrification transformation. The industry is moving fast and speed is key also for policymakers, especially in providing green, reliable energy.

As the automotive industry accelerates its shift toward electric vehicles (EVs), the focus has turned to the factories where these vehicles are produced. The evolution of EV manufacturing is not just a matter of building electric cars. It also involves the transformation of smart factories and the battery production process.

China has gained a significant lead in the EV evolution. An early start of the EV transformation has allowed China to address critical issues like air quality in its major cities, where the adoption of EVs has drastically improved conditions. China's approach includes developing a full value chain for battery production, an area where Europe is still catching up.

A few innovations highlight the industry’s push toward sustainability. First, the chosen materials for EV batteries are important. In Chinese cities, vehicle batteries use iron instead of kobalt, which provides less optimal energy density but is good enough for driving in cities. Also, the battery shape matters. Innovations like blade batteries are more compact and easier to recycle. Third, sodium-ion batteries can be used instead of lithium-ion batteries to provide a more sustainable option. 

The challenge of sustainably recycling batteries remains significant. Currently, the lack of standardization in battery pack design and the limitations of existing robotics mean that most batteries are simply crushed into a "black mass" from which valuable materials are extracted. This process, however, results in material loss. 

Looking ahead, the ultimate smart factory of the future is self-sustaining and has its own battery recycling. However, a roadblock to building such a factory, particularly in regions like Sweden, is the lack of machinery and hardware suppliers needed for battery manufacturing.

As the automotive industry shifts towards electrification, the impact on the assembly process is profound and drives significant changes on factory floors worldwide. 

It’s not just about producing more sustainable cars but also about ensuring that the manufacturing processes themselves are sustainable. This is where smart assembly tools and integrated assembly lines come into play. One of the most notable transformations has been the move to cordless smart electric tools. Thanks to the reduced setup time, line balancing effect, and productivity increase, it is possible to save up to 1,000 hours on a typical assembly line. 

Moreover, these smart tools are playing a crucial role in the R&D of new EV models. The ability to provide digital twins of assembly tools to R&D teams allows for better visualization, simulation, and performance testing. 

At the heart of EVs are batteries and the assembly of these batteries is an area of rapid innovation. Isra Vision has innovated a new battery pack design that enables the battery assembly to see up to 20% material savings.  

These days in battery assembly, every manufacturer is tailoring solutions to meet specific consumer needs. Innovation centers across the U.S., Europe, and Asia are helping to drive this customization by offering services that ensure customers are fully supported in their efforts to innovate. 

Smart Integrated Assembly is Atlas Copco’s concept for industrial manufacturers looking to transform and implement Smart Factories. The offering includes smart connected assembly tools for factories and field operations, fully integrated assembly line solutions from design to production, as well as a unique set of data-driven services.

This holistic approach helps you develop quality-assured and ergonomic operator-friendly production while minimizing waste, materials and energy consumption. This leads to reduced costs while also cutting down on climate-changing emissions.