TDK Corp. (OTC:TTDKY), a key supplier of Apple has entered into a strategic partnership with McLaren Racing to enhance its presence in the Formula E electric motor racing series.
What Happened: The Japanese electronics company, renowned for its smartphone batteries, aims to supply components such as inverters and sensors for McLaren's Nissan e-4ORCE 05 cars, Reuters reported on Tuesday.
TDK is a prominent player in passive components and sensors and is leveraging the advanced technology of Formula E to improve its product offerings.
"Formula E technology is always at the cutting edge of EVs and we want them to utilise our components so we can sharpen our technology," said Taro Ikushima, CEO of TDK's Electronic Components Business Company, in an interview with Reuters.
Automotive products make up nearly 25% of TDK's sales. The company is a leading supplier of ceramic capacitors and temperature sensors. Despite debates on the speed of transition from gasoline vehicles, TDK sees vast opportunities in the EV market, as plug-in hybrids and battery electric vehicles require significantly more multilayer ceramic chip capacitors than traditional gasoline cars.
Why It Matters: The partnership between TDK and McLaren Racing is a significant move in the context of the growing focus on electric motorsports. Earlier this year, Saudi Arabia's Public Investment Fund, which owns a majority stake in Lucid Group Inc., (NASDAQ:LCID) announced a multi-year partnership with Formula E, Extreme E, and E1 to support the growth of electric motorsports. This initiative, known as Electric 360, aims to foster leadership events, STEM initiatives, and community apprenticeship programs.
Additionally, the motorsports industry is witnessing a shift towards electrification. In July, NASCAR unveiled a new electric vehicle prototype and launched an electrification innovation partnership, signaling a significant transformation in racing leagues. This move underscores the potential for diversification with electric vehicles in the motorsports sector.
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Image by Steffen Prößdorf via Wikimedia Commons
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
