May 16, 2020

LEAN 101: How Apple created its highest ever margin with the Apple Watch

Apple
Apple Watch
Tim Cook
Technology Manufacturing
Glen White
1 min
LEAN 101: How Apple created its highest ever margin with the Apple Watch
Apple Watch manufacturing costs unveiled.According to analysts IHS Technology, the £299 Apple Watch Sport has a manufacturing and component cost t...

Apple Watch manufacturing costs unveiled.

According to analysts IHS Technology, the £299 Apple Watch Sport has a manufacturing and component cost totalling just £53. IHS claims that this cost makes the Apple Watch the highest margin product Apple has ever produced.

IHS worked out these figures using US prices and it estimates that that 24 percent of the device’s retail price comes from hardware costs.

“It is fairly typical for a first-generation product rollout to have a higher retail price versus hardware cost,” said IHS Technology senior principal analyst-materials and cost benchmarking services Kevin Keller.

“While retail prices always tend to decrease over time, the ratio for the Apple Watch is lower than what we saw for the iPhone 6 Plus and other new Apple products, and could be of great benefit to Apple’s bottom line if sales match the interest the Apple Watch has generated.”

However, Apple chief executive Tim Cook, on an analyst call following Apple’s results last week, argued about the accuracy of these ‘teardown’ claims. “Generally there are cost breakdowns around our products that are much different than the reality. I’ve never seen one that is anywhere close to being accurate,” said Cook.

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May 12, 2021

Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing

SustainableManufacturing
BatteryCell
EVs
Automotive
2 min
Ultium Cells LLC and Li-Cycle join forces to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing

Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing

 

What is Ultium Cells LLC?

Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”

Who is Li-Cycle?

Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.

As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”

Why are Ultium Cells LLC and Li-Cycle join forces?

By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.

“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).

"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.

"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.

Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.

"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.

Image source: 1, 2, 3, 4, & 5

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