Jaguar is stopping production of the I-Pace for a week because it doesn't have enough batteries - and it shows why Tesla and GM are spending billions on battery factories

• Jaguar will pause production of its I-Pace electric SUV for a week starting February 17 due to a battery shortage, The Times' John Collingridge reported.
• Jaguar told Business Insider it "has adjusted production schedules of the Jaguar I-Pace" because of "temporary supplier scheduling issues," but did not specify what those issues are.
• Audi and Hyundai have also had to delay production of their electric vehicles due to battery constraints.
• Car companies plan to significantly increase electric-vehicle production over the next decade, which will raise pressure on battery manufacturers to keep up with the new demand.
• Visit Business Insider's homepage for more stories.

Jaguar will not produce its I-Pace electric SUV from February 17 through February 24 due to a battery shortage, The Times' John Collingridge reported. LG Chem supplies the I-Pace's batteries.

A Jaguar representative told Business Insider it "has adjusted production schedules of the Jaguar I-Pace" because of "temporary supplier scheduling issues," but did not specify the nature of those issues.

"We are working with the supplier to resolve this and minimize impact on customer orders," the representative added.

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LG, the parent company of LG Chem, did not immediately respond to a request for comment.

Automakers plan to significantly increase electric-vehicle production over the next decade, which will raise pressure on battery manufacturers to keep up with the new demand. Aside from Jaguar, Audi and Hyundai have also experienced electric-vehicle production delays due to battery constraints.

To increase control over their battery supply and drive down costs (the battery pack is the most expensive part of an electric vehicle), automakers like Tesla, General Motors, Toyota, and Volkswagen are investing in joint ventures with battery manufacturers like Panasonic and LG Chem. Tesla started the trend by opening a battery factory in Nevada in 2016, and GM and LG Chem announced last year that they will invest up to $2.3 billion in a battery factory in Ohio.

While the I-Pace has received positive reviews and took top honors at the 2019 World Car Awards, sales have been low, relative to other electric vehicles. Through the first 11 months of 2019, the I-Pace was not among the world's 20 best-selling electric and plug-in hybrid vehicles.

Read The Times' full story here.

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