MBN USA

August 02, 2021

UnFollow View Profile Send Message Copy Link

UnFollow View Profile Send Message Copy Link

Electric vehicles unleash disruption, opportunity

By Suzanne B. Squyres

Electric vehicles are increasingly commonplace on American roads, thanks to the increasing reliability and range of batteries, rising number of charging stations, driver confidence and a push toward clean energy.

President Joe Biden has announced his intentions to replace federal government vehicles with electric cars “made right here in America by American workers” — no small feat, considering the government fleet includes 645,000 vehicles.

Around the globe, sales of EVs are expected to hit 8.5 million units in 2025, up from 1.6 million in 2020 and 450,000 in 2015, according to Bloomberg Finance LP. On the other hand, gas vehicles are not going away. One industry analyst predicts that by 2040, only half of global cars will be electric.

EV Evolution

Electric vehicles date to the 1800s when carriages and locomotives carried non-rechargeable batteries that propelled cars up to 20 miles per hour. In the early 1900s, electric cars accounted for about a third of vehicles on the road.

By 1912, however, Ford Motor Co. had introduced the gas-powered Model T and General Motors Co. created the first electric starter for gas-power cars. By 1935, EVs had vanished.

As gas prices soared in the 1960s and 70s, interest in EVs grew, but plummeted again when their performance and range could not compete with gas-powered autos. By the 1990s — with federal and state regulations aimed at curbing pollution becoming the norm — automakers began modifying popular vehicle models into EVs with the goal of making them equal to their gas-powered counterparts.

In 2007, GM introduced the Chevy Volt. One year later, Tesla Inc. launched the Roadster. The market never looked back. Today, every automaker in the world is moving forward with EVs as their prime products. Toyota Motor Corp., Ford, GM, Nissan Motor Co. Ltd., Hummer, Audi AG and Stellantis NV — formerly Fiat Chrysler — are expected to release 100 new EVs in the next five years.

GM plans to exclusively offer EVs by 2035, ending production of its diesel- and gas-powered vehicles. “Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle,” said Mary Barra, GM chairman and CEO. “Our most significant carbon impact comes from tailpipe emissions of the vehicles we sell; in our case, it’s 75%. That is why it is so important that we accelerate toward a future in which every vehicle we sell is a zero-emissions vehicle.”

GM and Honda Motor Co. Ltd. formed an alliance in which they would share common vehicle platforms and jointly develop two electric vehicles for Honda. “Through this new alliance with GM, we can achieve substantial cost efficiencies in North America that will enable us to invest in future mobility technology, while maintaining our own distinct and competitive product offerings,” said Seiji Kuraishi, Honda executive vice president/chief operating officer.

It’s All About the Battery

This segment of the industry is rapidly changing as dozens of companies around the globe are developing fast-charging batteries. The global market for next-generation batteries — those that perform better and last longer than existing lithium-ion batteries — is expected to grow from $40 million this year to $413 million in 2025, $3.1 billion in 2030 and $25.2 billion in 2035.

Range anxiety is the fear consumers have of being stranded on the roadside because their EV batteries are not as reliable and cannot last as long as a tank of gas. The possibility keeps many buyers from even looking at EVs, but advancements in battery technology and components are changing as companies experiment with silicon electrodes, niobium oxide nanoparticles and other materials. Many manufacturers are testing a variety of concepts to increase viability and reduce battery costs:

• Toyota plans to unveil a solid-state electric battery that provides more than 300 miles of range, charges in 10 minutes and maintains 80% of its charge capacity for about 240,000 miles.

• China-based NIO Inc. offers a leasing service in which EV drivers can swap batteries.

• GM has been working on a new battery chemistry that will last up to 450 miles on a single charge.

• Nissan, Volkswagen AG, Toyota, GM, Hyundai Motor Co., Fisker Inc. and Ford have invested in the development of solid-state battery technology. Solid-state batteries are lighter, have greater energy density, range and faster recharge times, and do not use liquid electrolyte that makes conventional lithium-ion batteries heavy as well as potentially dangerous at high temperatures.

• Electrify America has built 800 charging stations at retail stores, such as Walmart and Meijer Inc. sites, around the country. Customers are charged by the kilowatt hour.

• Israeli company StoreDot Ltd. has created a battery that can be charged in five minutes, a development that makes recharging a battery as fast as filling a gas tank.

Batteries, regardless of composition, require charging.

“Among people who already own or want to purchase electric vehicles and plug-in hybrids, 48% say that a lack of charging stations is one of their main concerns,” said Ted Cannis, Ford global director of electrification. The company has built a network of more than 13,000 charging stations around the country. “By offering industry-leading charging access, we are dismantling those barriers,” he added.

Spanish company Wallbox Chargers SL recently made its Pulsar Plus at-home charger — which works with all EVs — available in the U.S. The device offers Amazon Alexa and Google Assistant voice control, Bluetooth and Wi-Fi connectivity, charge scheduling and flexible amperage setting.

Opportunities for Suppliers

Massive transformations are typically preceded by massive challenges. Mistakes are made and lessons learned, but they herald innovation and that is what supplier diversity is all about, according to Chuck Hendrix, senior manager, supplier diversity, Toyota Motor North America Inc. “Our suppliers work diligently to provide the highest levels of quality and most competitive products and services, in addition to providing innovative ideas to help with the ever-changing automotive and mobility industry and our pursuit of ‘always-better cars,’” he said.

Some of the biggest opportunities in the exploding EV space are with companies that are setting up the entire ecosystem that supports the industry. Developments yielding opportunities for suppliers include:

• President Biden has announced that building 550,000 new EV charging stations around the country is a top priority.

• The U.S. Department of Energy is working with private labs to create a touchless, wireless power transfer pad with a magnetic field between a transmitting pad on the ground and a receiving pad located on the bottom of the vehicle.

• Chinese manufacturer NIO — often referred to as the Chinese Tesla — has created a battery-swapping subscription service, which — if offered in the U.S. — would necessitate the construction of battery-swapping stations throughout the country.

• Old EV batteries can be recycled, requiring collection and transfer services.

• Royal Dutch Shell PLC has agreed to buy Ubitricity GmbH, one of Europe’s largest on-the-street electric car-charging companies. Ubitricity offers such options as lamppost charging for those who live and work in cities.

• Several companies in Israel and Sweden are experimenting with electric coils installed under roads that can transmit energy to EVs, charging them as they travel.