As 2024 comes to a close, the automotive manufacturing industry continues to accelerate its transformation. From groundbreaking advancements in EV battery technologies to bold steps toward sustainable production, this year has marked a pivotal shift in how vehicles are designed, built, and powered.

Looking ahead to 2025, trends like the rapid scaling of global gigafactory networks, the diversification of EV battery chemistries, and the adoption of renewable energy are set to drive the industry forward. These shifts require innovation, collaboration, and strong leadership—the core themes explored in our top-performing articles of 2024. At AMS, we will be covering all the topics in greater detail including insights from industry experts, analysis and interviews in the coming year so stay tuned!

For now, here is the recap of five standout stories that shaped the year. Be sure to click through to the full articles for a deeper dive into these game-changing topics.

1. Tesla’s EV battery production and global gigafactory network

Tesla’s relentless drive to expand its global gigafactory network has been a defining feature of 2024. This article dives into the company’s ambitious production targets, including the development of Gigafactory Mexico and its innovative approaches to battery cell technology. By streamlining its supply chain through vertical integration, Tesla is raising the bar for EV production efficiency and sustainability.

Looking ahead, Tesla’s strategies are likely to influence industry standards and inspire localisation efforts across the sector. With its focus on next-generation cells and expanded production capacity, Tesla is paving the way for a more efficient and sustainable global EV landscape.

Dive into the full article for a closer look at Tesla’s evolving plans.

2. Top 5 EV battery chemistries and formats across the world

Battery technology has taken centre stage in the EV revolution, and this article provides a deep dive into the leading chemistries and formats that defined 2024. From LFP to cutting-edge solid-state batteries, it examines the trade-offs between cost, performance, and sustainability while uncovering key regional trends. These advancements are critical as manufacturers aim to balance efficiency, durability, and safety.

As battery technologies evolve, the future promises breakthroughs in recyclability and energy efficiency. Innovations like solid-state batteries are set to revolutionise manufacturing priorities and reshape the EV supply chain.

Explore the full article for an insightful journey into the world of battery innovation.

3. Why Statevolt is building a gigafactory in the UAE instead of Europe

Statevolt’s decision to build its gigafactory in the UAE rather than Europe has been a talking point this year. This article explores the strategic reasons behind the move, including the UAE’s favourable energy policies, market accessibility, and logistical advantages. By leveraging these factors, Statevolt is positioning itself to meet the rising demand for EV batteries in an increasingly competitive market.

This decision also highlights a broader trend toward diversification in battery production hubs. With the Middle East emerging as a significant player in the EV supply chain, manufacturers must adapt their strategies to seize these new opportunities.

For a deeper understanding of this pivotal development, read the full article.

4. The rising role of renewable energy supply in automotive production

The integration of renewable energy into automotive production took centre stage in 2024. This article sheds light on how OEMs are embracing solar, wind, and hydrogen power to achieve sustainability goals. From energy-efficient factories to green hydrogen applications, the examples showcased highlight the industry’s shift toward greener production methods.

As net-zero targets become the norm, the reliance on renewable energy is only set to grow. Exciting developments in energy storage and green hydrogen technologies promise to redefine production processes further.

Click here for a closer look at the role of renewables in reshaping the automotive landscape.

5. JLR: Putting sustainability at the centre of its strategy

Jaguar Land Rover’s “Reimagine” strategy has cemented its position as a sustainability leader. This article highlights the company’s strides in electrification, material innovation, and circular economy practices. Notable achievements in 2024 include significant progress in reducing emissions and advancing transparent ESG reporting.

Looking ahead, JLR’s focus on carbon-neutral manufacturing and environmentally responsible practices sets a powerful example for the industry. The company’s bold approach offers a blueprint for transformative change.

Be sure to read the full article here.

As we reflect on 2024, it’s clear that this year was a turning point for automotive manufacturing. The strides made in EV battery innovation, renewable energy adoption, and sustainability are paving the way for a more resilient and forward-thinking industry. These articles highlight not just the progress made but also the opportunities and challenges that lie ahead.

The road to 2025 is set to bring even more dynamic changes, with global collaborations, technological breakthroughs, and bold strategies defining the future of manufacturing. Here’s to a future built on innovation, sustainability, and collaboration.

Thank you for being part of this journey with us. We invite you to revisit these top stories, share your perspectives, and stay tuned for more in-depth coverage of the trends shaping the automotive world. 

2025 Predictions: AI, Digital Twins, EV Growth, and Sustainability

The automotive manufacturing sector is entering 2025 amidst seismic shifts driven by electrification, digital transformation, and the growing mandate for sustainability. Recent developments highlight how manufacturers are leveraging advanced technologies and evolving their strategies to meet these challenges. This year will be defined by the deeper integration of Artificial Intelligence (AI) and Smart Factory principles, across a widening gambit of automotive manufacturing, the scaling of electric vehicle (EV) production, and an intensified focus on sustainability through circular economy practices.

AI and Smart Factory to see increased usage

Artificial Intelligence and Smart Factory technologies are no longer aspirational but integral to modern automotive manufacturing. Stellantis, for instance, has demonstrated how AI can transform production efficiency. By incorporating AI tools, the company has reduced production costs while accelerating vehicle launch timelines. This approach enhances flexibility across its global operations, ensuring a rapid response to shifting market demands. Similarly, Skoda has embraced AI to navigate the complexities of modern manufacturing.

By focusing on digital transformation, the company aims to integrate predictive analytics and process automation, creating production systems that are adaptable and resilient. These examples point to AI enabling real-time decision-making and predictive maintenance, while improving quality control and minimising downtime, marking the technology ‘a no-brainer’ for production in 2025.

Digital Twins and Simulation technologies take centre-stage

The use of digital twins and simulation is also seeing major growth.

Volkswagen is using digital twin technology at its Wolfsburg plant to simulate and optimise production processes for the Tayron SUV. This ensures precise planning, reduces downtime, and enhances efficiency in assembly operations.

BMW is also integrating advanced digital twin models and simulation technologies at its San Luis Potosí facility. These tools enable real-time analysis and predictive maintenance, streamlining manufacturing and improving sustainability.

The technology is seeing major growth with tier-suppliers. ABB is investing in advanced software that simulates automotive painting processes, cutting costs by up to 30%. The simulations enhance precision and minimise waste in this energy-intensive stage of manufacturing. 

Henkel is using digital simulation tools to co-develop EV battery designs with automotive partners. The simulations improve thermal management, safety, and efficiency to meet the demands of future mobility.

The broader tools of Smart Factory has also gained traction. Factories equipped with IoT-enabled devices and machine learning capabilities are emerging as the backbone of next-generation automotive production. These facilities use data-driven insights to optimise processes, reduce energy consumption, and increase operational efficiency. This trend is reshaping how manufacturers think about scalability and flexibility, particularly as the demand for electric vehicles continues to grow, and will continue to make itself felt throughout 2025.

Electrification to grow despite various hurdles

Electrification remains the industry’s central pillar of transformation. The UK’s automotive sector offers a compelling illustration of the progress being made. In the first half of 2023, electrified vehicle production surged by 70%, highlighting the rapid pace of investment in EV production capabilities, and continues to grow. Yet, this transition has not been without challenges.

Supply chain constraints and the complexities of transitioning to new models led to a temporary production decline in mid-2024, reflecting the difficulties manufacturers face in scaling EV production while maintaining operational continuity. Volkswagen’s Traton Group, recognising the urgency of addressing these bottlenecks, is planning a third battery assembly plant in Europe. The move highlights the scale of investment required to meet zero-emission vehicle targets and align with regulatory pressures for decarbonisation. 2025 is set for greater EV adoption. 

Sustainable production continues to rise

Sustainability has evolved from a competitive advantage to an existential necessity for the automotive industry. Efforts to adopt circular economy practices are intensifying, with manufacturers exploring innovative ways to extend the lifecycle of materials and reduce waste. Michelin’s development of tyres composed of 45% sustainable materials is a noteworthy example of how companies are rethinking material usage to minimise their environmental footprint.

Further, Jaguar Land Rover is pioneering a closed-loop recycling process for seat foam, turning waste from old vehicles into high-quality material for new ones. This innovative, circular production approach supports sustainability goals by reducing landfill waste and advancing circular economy practices in automotive manufacturing.

Moreover, automakers and tier-suppliers are increasingly focusing on sustainable steel production to lower emissions across their supply chains.

However, an SSAB survey reveals that cost and investment challenges remain significant barriers to widespread adoption. Despite these hurdles, the integration of sustainable materials is expected to accelerate as regulatory frameworks tighten and consumer demand for environmentally responsible products grows. Sustainable production will continue to grow throughout 2025. 

Megacasting, Giga Stamping and the role of simplified architectures

Advanced manufacturing technologies, such as megacasting and giga-stamping, are playing a pivotal role in enabling the industry’s transformation. Megacasting, which involves producing large aluminium castings to replace multiple smaller components in vehicle structures, is gaining momentum in the automotive industry. Tesla is at the forefront of this innovation, using megacasting for the front and rear structures of its vehicles, such as the Model Y. This approach simplifies manufacturing by reducing the number of parts and assembly steps, leading to cost savings, improved vehicle rigidity, and reduced emissions during production.

Other companies are exploring the potential of megacasting. Volvo Cars has announced plans to adopt large aluminium castings for its next-generation electric vehicles, aiming to simplify production and enhance sustainability. Meanwhile, Toyota is reported to be cautiously evaluating the technology, balancing its benefits against potential risks.

Volvo has adopted megacasting techniques to simplify EV production, reducing the number of components required and streamlining assembly processes. This both lowers costs and improves vehicle performance, addressing both market demands and sustainability goals. These innovations represent a broader shift toward manufacturing systems that prioritise efficiency and scalability, allowing automakers to meet growing consumer expectations while managing resource constraints.

Global market dynamics are further shaping production strategies. Nearshoring is becoming increasingly prevalent, particularly in North America, where manufacturers are shifting operations closer to key markets to mitigate supply chain risks and reduce logistical costs. In the UK, auto production surpassed one million units in 2023, marking a significant recovery. However, with the cessation of certain models, there are concerns about a potential production dip in 2024. New EV launches slated for 2025 are expected to reinvigorate the market, underscoring the importance of product innovation in sustaining growth.

2025 is set to be a big year for automotive production

As the industry advances, 2025 will be a defining year in the automotive manufacturing sector. The convergence of AI-driven production systems, the scaling of EV capabilities, and the adoption of sustainable practices will reshape the competitive landscape. Manufacturers that successfully integrate these elements into their strategies will not only navigate the challenges of today but also position themselves as leaders in the future of mobility.