'Humble and hidden' auto suppliers drive the EV revolution

STORY: When you think of the electric vehicle boom, you might think of big names like Tesla.

But what about firms like TE Connectivity?

Probably not.

But as the auto industry rapidly electrifies, it’s firms like TE – ones that make the auto parts for EVs – that are feeling the pressure to keep up with demand.

So how are they going to do it?

American-Swiss company TE makes the connectors that link miles of cables in cars to all things electrical – from sensors to fuel injection systems to infotainment.

The firm spent $125 million on a new electric vehicle parts factory in southern Germany in 2020.

Despite its $43 billion market value, TE’s Head of Europe, Middle East and Africa, Matthias Lechner, describes the company as "hidden and humble."

"The whole auto industry is challenged with this transformation, including us because our parts are getting bigger and more complex and we have to deliver them, going forward, also in high volumes because EV are picking up really fast. So therefore, we have to adapt to this in our manufacturing processes and also in skill setups.”

The explosion in demand for EVs over the past few years have caught car parts suppliers and automakers off guard.

And with everyone playing catch-up, TE's new facility in Germany is running at double its planned production.

The ever greater power needed by EVs means the company must develop larger and more complex components to handle the extra current, without causing fires.

“Electrical mobility is all about electrical power and high voltage and we are producing as a technology leader in connectivity and sensor solutions products to be able to carry this power from A to B in the car, and this safely and most reliably.”

The company says it's now on the lookout for acquisitions or partnerships to keep adding capacity...

Electric vehicles almost doubled their global share of vehicle sales to 6% in 2021. That's according to research group JATO Dynamics.

With demand continuing to soar, the payoff for TE might not be so humble.