Eyeing to boost its EV market presence while aiming for innovative components and a 39% share surge, component manufacturer TDK teams up with McLaren Racing in Formula E.
Apple supplier TDK has joined forces with McLaren Racing in Formula E, as the Japanese components manufacturer seeks to expand its footprint in the electric vehicle market.
Being one of the world’s leading suppliers of smartphone batteries, TDK is now focusing on growing its passive components and sensors divisions to strengthen its position in the EV supply chain.
According to the company, TDK’s technology powers the Nissan e-4ORCE 05 cars used by McLaren, and it aims to supply components like inverters and sensors.
Taro Ikushima, CEO of TDK’s Electronic Components Business Company, stated in an interview that Formula E technology is consistently at the cutting edge of EV innovation, and they aim to integrate their components to improve their technology.
Automotive sales represent nearly a quarter of TDK’s total revenue. It mainly supplies components like ceramic capacitors and temperature sensors.
While many fans still favour Formula One for its distinctive internal combustion engine sounds, interest in Formula E is reportedly rising. The pace of the shift from gasoline vehicles is a topic of discussion, with Toyota chairman Akio Toyoda predicting that the global EV market share will peak at 30%.
Subsequently, TDK sees significant potential across the board, noting that plug-in hybrids and battery electric vehicles require 60% and 100% more multilayer ceramic chip capacitors, respectively, compared to gasoline cars.
Ikushima mentioned that safety, durability, and longevity are crucial factors in the automotive industry that can be applied to other sectors. He noted that TDK shares have increased by 39% this year, significantly outperforming the 13% rise in Japan’s broader Topix index.