Why a hot -- and cold -- EV problem is great news for BorgWarner

BorgWarner CTO Harry Husted says that a complex, multilayered challenge for electric vehicles – thermal management – is starting to get the attention it deserves.

"You have power electronics that need to be cooled, batteries that need to be heated and cooled, and then you have the traditional passenger comfort side of things," Husted said.

When it comes to providing warmth, EVs are at a disadvantage compared with the combustion-driven counterparts.

Free heat

"Heat was free in combustion vehicles because you just made so much of it," said Husted, who joined the supplier in 2020 after it took over his former employer, Delphi Technologies. "If you wanted it, you could tap into that."

Now automakers and suppliers need make heat as well as create new solutions that provide cooling.

"It's a big opportunity," Husted said. "We have got brand new lines for products that didn't exist in combustion engine vehicles."

That includes high-voltage coolant heaters.

"In 2027, we are going to sell 7 million of those based on our bookings [up from 200,000 last year]," Husted told Automotive News Europe.

The supplier this month announced its second contract in two months for its 400-volt high-voltage coolant heaters. The latest deal is for a global automaker's "European light vehicle program," the supplier said, adding it would start making the coolant heaters in 2026.

The supplier also recently announced a European win for battery cell cooling where it provides a heat exchanger with dielectric coatings, Husted said. The solution can keep cylindrical battery cells cool as well as heat them up when needed.

"By thermally managing the battery, it works better and it's more efficient – and it also can provide higher performance," Husted said.

Challenging transition

The move to electrification, however, has brought some challenges. BorgWarner said earlier this month that its EV product portfolio will be a money loser for longer than expected.

The company this month lowered its e-product sales expectations for 2023 by about $300 million as automakers delay launches and grapple with slumping demand for EVs.

BorgWarner unveiled ambitious plans two-and-a-half years ago to make EV sales account for 45 percent of overall revenue while disposing of $4 billion of internal combustion engine business. While sales projections have been reduced in the short term, Lissalde said the company's outlook remains unchanged for 2027 and beyond.

BorgWarner also recently signed an agreement to supply Volvo's next-generation EVs with power modules that feature silicon carbide chips from STMicroelectronics.

Silicon carbide chips for inverters have become critical for EVs because they are more stable at higher voltages (800 volts and above) than silicon-based semiconductors. They also use less material, which saves space and weight and operates at higher temperatures, reducing the need for thermal management.

BorgWarner has invested $500 million in the U.S. company Wolfspeed in a deal that will allow the supplier to buy up to $650 million worth of silicon carbide chips annually.

Direct access to chips

To secure access to silicon carbide chips, a number of automakers have signed deals with chipmakers rather than relying on suppliers. For instance, Volkswagen Group in January signed a strategic agreement with the U.S. tech company Onsemi to provide silicon carbide modules and semiconductors for inverters for VW's next-generation EV platforms.

Husted said that while BorgWarner is confident it has access to enough silicon carbide chips to meet future demand, he understands why automakers are also working directly with the chipmakers, even if it can cause issues.

"I would say in some cases, maybe it makes it more complicated than it's been in the past," he said. "But I think it's a necessary reaction to what happened to the industry during the chip shortage."