TDK, Apple Supplier, Partners With McLaren Racing For Expansion In The Electric Vehicle Sector

DK Corp, announced its partnership with McLaren Racing in Formula E (photo: x @TDK_Japan)

JAKARTA TDK Corp, a component supplier to Apple, announced its partnership with McLaren Racing in Formula E as part of an expansion strategy in the electric vehicle (EV) sector. This partnership shows TDK's ambition to strengthen its presence in the EV market by utilizing the latest technology used in electric car racing events.

TDK, formerly known as a band cassette producer, has now become one of the largest smartphone battery suppliers in the world. The Japanese company is also focused on developing a passive component and sensor business, which is expected to make a major contribution to the fast-growing EV market.

Technology from TDK is currently being used in the Nissan e-4ORCE 05 electric car, which is part of the McLaren racing team in Formula E. Taro Ikushima, CEO of the TDK Electronic Components Business Company, in an interview said that collaboration with Formula E opened up great opportunities for TDK.

"Technology in Formula E is always at the forefront of developing electric vehicles, and we want them to take advantage of our components so that our technology can continue to develop," said Ikushima. He added that TDK sees the opportunity to develop components such as inverters and sensors that are very important for electric vehicles.

The automotive sector accounted for nearly a quarter of the total TDK sales, which was founded in 1935. TDK has long been known as the main supplier of key components such as multi-layered ceramic capacitors (MLC) and temperature sensors widely used in the automotive industry.

Increasing demand for electric and plug-in hybrid vehicles, component needs such as MLC are also increasing. Plug-in hybrid electric vehicles and electric vehicles fully use MLC up to 60% to 100% more than gasoline-fueled vehicles, which create great opportunities for TDK.

Although most automotive fans still like Formula 1 with its internal combustion engine, interest in Formula E continues to increase. Formula E is a symbol of the world's transition to more environmentally friendly vehicles, and TDK wants to be part of this transformation.

Automotive companies, including Toyota, have different views on the transition speed from gasoline-fueled vehicles to electric vehicles. Toyota chairman Akio Toyoda estimates that the global market share for electric vehicles may only reach 30%.

Throughout this year, TDK's shares increased by 39%, outperforming Japan's Topix index which only grew 13%. This growth reflects investor positive sentiment towards TDK's strategic steps in the electric vehicle market as well as increased demand for components for the automotive sector.

Ikushima also highlighted that factors such as safety, resilience, and durability are very important in the automotive industry, and innovation in this sector can be applied in various other sectors.