The Barriers To EV Adoption

Despite predictions that Covid-19 would halt the development of the electric vehicle (EV) industry, the opposite appears to be true. The lockdown has given people a glimpse of what a world with fewer vehicles (at least fewer combustion engine vehicles) on the roads might look like. Together with an increase in subsidies and grants as part of Covid-19 rescue packages, this appears to be creating a "perfect storm" for driving EV adoption.

While the increase in EV sales last year was hugely encouraging, there are still many obstacles to overcome to enable a full transition to electric mobility. Automotive manufacturing is a traditional industry and has been operating the same way for decades. Vehicle OEMs cannot simply stop producing combustion engine vehicles one day and start building EVs the next. New vehicles must be designed, supply chains rebuilt and assembly plants redesigned or repurposed, all of which will take a considerable amount of time and money.

The charging infrastructure required to support a full, community-wide transition to EVs is not yet available. Then there is the question of where all of the additional energy needed to power this huge increase in charging capability is going to come from. Solutions to all of these challenges, and more, must be found in order to achieve a full and successful transition to electric mobility.?

The most pressing issue is ensuring that power grids are able to supply the high level of power that will be required to support a full transition to EVs. In many countries, aging power grids are already struggling to cope with increased demand caused by factors such as population growth and the rise of power-hungry 5G technologies — and that is before we factor in the huge amount of additional energy that will be needed to power millions of EVs. This will require significant investment from electricity suppliers, charging infrastructure companies, and, most importantly, from governments.?Ensuring there is the adequate charging infrastructure is the next vital part of the puzzle. It is no coincidence that countries that have invested heavily in developing their charging infrastructure are leading the way in EV adoption. However, we are continuing to see some very encouraging developments in this area. For example, in November 2020, the U.K. government announced plans to invest?￡1.3 billion?to accelerate the rollout of EV charging infrastructure. Meanwhile, in the U.S., President Biden has committed to funding?500,000 new EV charging outlets?by the end of 2030.

Another barrier to EV adoption is the range and charging anxiety. This is the fear that drivers will run out of power on the highway, or that they will be stranded at a charging station for hours while they recharge their vehicle. Today, it takes at least 40 minutes to charge an EV. That's far too long for drivers used to refueling their vehicle in five minutes. However, if the charging experience becomes like refueling a traditional petrol vehicle, this anxiety can disappear. There are numerous challenges to overcome before our shared vision of a fully electric mobility industry can become a reality; however, it simply will not happen if different parts of the EV ecosystem do not collaborate. For example, while developing XFC technology is hugely important, it will be of little use if it is not compatible with future vehicle designs or charging infrastructure.?

Currently, almost six percent of vehicles sales in?China are EVs?compared to almost?two percent in the US. China is going slower with its target and is on track?to achieve 40% by 2030. However, the?International Energy Agency?says it will be more like 70%. Whichever is the figure, how can the US overtake China in the EV stakes between now and 2030?

But big business hasn’t been waiting for announcements about presidential targets. They’re already lifting their game. Amazon’s move to?put more electric vehicles on the road?is just one example. Its?Climate Pledge?will see it with 100,000 EVs by 2030 and be carbon neutral a decade later. Amazon’s new EV delivery vans are already running and have Alexa built-in so their drivers can use voice commands for help while driving or moving parcels in the van’s cargo bay.?Electric vehicle maker Rivian?partnered with Amazon to customize these EVs, which can drive up to 150 miles on a single charge.

Amazon is getting into gear, but it’s just one chink in the big EV picture. It’s been a decade since Nissan was the first to release a modern mass-produced EV with the Leaf. Muscling into the territory are over?400 other?EV companies in the US. Tesla is the?biggest player?– holding around 7o% of the EV market in sales in the US over the past three years. However, most other manufacturers have plans for new vehicles in the planning or production phase.?Volvo?aims for half of their sales to be electric by 2025 globally and the other half to consist of hybrid models. All up, the US has more than 200 manufacturing facilities that make parts and technology for hybrid and electric cars.

It sounds like EVs are getting traction, but what else needs to happen so we can meet the 2030 EV target? Behind the scenes, expect massive changes in automotive manufacturing as well as the skills development and workforce to support EVs and the infrastructure on which they depend.?

There’s a seismic technological shift in the way the country’s largest manufacturing sector operates; according to a?study by the Motor & Equipment Manufacturers’ Association (MEMA), automotive and commercial vehicle suppliers directly employed 907,000 US workers in 2019. Those figures were released in February this year. If you include indirect employment, the number of jobs swells to 4.8 million.?

But the?Bureau of Labor Statistics?has a slightly different slant. It reported in August that there were 923,300 people employed in manufacturing motor vehicles and parts, with 1,980,300 in motor vehicle retail trade and parts deals and another 1,253,000 working in automobile dealers. That’s a sizable total workforce of almost 4.15 million. All areas saw strong growth in the 12 months to November. Michigan, Kentucky, Ohio, Alabama, Indiana, and California are the top states for vehicle and parts manufacturing. It is also interesting to note, according to the International Labor Organization, about one in five workers in the US automotive industry – direct and indirect employment- are female.

By 2027, the?electric vehicle market?is tipped to hit $194.2 billion in North America,

Keep in mind that the demand for EVs is only one aspect of the automotive manufacturing and parts sector transformation. Automotive is leading the way in installing industrial robots, but the US is a ‘fast’ adopter, compared to China, an aggressive adopter in harnessing such technology. The structures and systems underpinning the industry are facing rapid technological developments, says the?International Labor Organization. We are seeing more advanced manufacturing such as digital driving systems, consumer preferences are changing, and concerns about sustainability, climate change, and regulation are coming to the fore.

While it is possible to achieve the mainstream adoption of EVs by 2035, it will require a concerted and joined-up effort from every part of the EV ecosystem. Companies large and small must be willing to work together to ensure future technologies are fully aligned. Meanwhile, governments must ensure promised funding is made available quickly to enable essential projects to get underway. Ten years is not a long time to achieve a total transformation of the automotive industry, but the reality is that there is no other option. We know where the finish line is. Now we just have to work together to remove the roadblocks that are preventing us from reaching our final destination.