Huawei Building

Huawei makes roads into EV territory

You might associate Huawei with the likes of Apple, in being solely dedicated to electronics and hand-held devices, but this could be about to change.

For the past few years, Huawei has been struggling to make progress, due to crushing US sanctions implemented during the Trump presidency. In mid-2020, the outgoing administration tightened the rules, making it harder for Huawei to gain access to microchips which had been manufactured or created using software developed in the US.

It is perhaps unsurprising that Huawei might move to branch out into new sectors, in order to restore its fortunes. What better way than to invest in the success story of EVs?

According to reports from Reuters, collaborated by four separate sources, Huawei is allegedly in talks to acquire plants from Chinese-based automakers, allowing it to begin manufacturing EVs.

Huawei diversifies its output

The initial Reuters report claimed Huawei is in talks with the likes of Changan Automobile, as well as BluePark New Technology, to start work on creating an entirely new line of EVs. Perhaps the move into EVs should make sense, considering that Huawei has just announced that its smartphone output will drop by more than half in 2021.

This deals a hammer blow to China’s ambitions of capitalising on 5G smartphone expansion in the US, especially while Trump-era sanctions remain in place under the new Biden administration. Restricted from acquiring the necessary components to make these new 5G smartphones, Huawei appears to have been backed into a corner, forcing it to diversify beyond smartphone technology.

The Reuters report is seemingly confirmed by news that two patents for EV technology were filed by Huawei Technologies Co., Ltd. in October 2020, under the label “An Electric Drive System, Powertrain, and Electric Vehicle” – application numbers for the patents were listed as CN112436747A and CN112436779A.

The implications of Huawei EVs

When you consider Huawei’s previous experience in producing technology for cars already, it’s no surprise that they should decide to transition into creating entire EVs at some point. Huawei has already done extensive work to create in-car software, sensors and 5G hardware. Electrifying cars completely is an apparent logical step following on from this, it would seem.

Huawei isn’t the only tech giant making forays into the world of EVs. Apple was reported to have an EV project in the works back in December, which Forbes described as a true threat to Tesla. Once considered an innovator when it came to consumer products such as the iMac, the iPod, the iPad and iPhone, Apple is working on an EV model under a project codenamed Titan, which could bear fruit as soon as 2024.

Tech companies have enjoyed a bullish 12 months, with a number of them seeing a rise in share prices, as consumers switched to digital solutions to stay connected, during the COVID-19 pandemic. Behind the scenes, these companies are eyeing up the world of tomorrow, beyond the pandemic, and believe it’s going to be electric.

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