Changing EV dynamics

Issue #175, Nov 16th, 2022

As we get our hands around what a world of electric vehicles (EVs) would look like, there are some good and some not-so-good developments. EVs can be used to store energy and use it when required, during a natural calamity for example, when there are power cuts. Tesla has opened up its connector design, and that can lead to interoperability between car makers. Ford plans to make EV parts inhouse to provide better employment opportunities. On the flip side, As EV adoption picks up, it may be more of the influential who buy it, not letting our societies realize the full benefit of climate control. The electricity need for a truck charging station on a highway may be as much as that of a small town's demand! Lithium-iron-phosphate batteries are common in China and are a cost-effective option, compromising on driving range. United Airlines' investment in a biofuel refinery could have green fuel options as byproducts or give new ideas for the auto industry too to be sustainable. Here are some situations we need to be prepared for as the world becomes more electrified.

EVs as batteries on wheels

As EVs with plugs proliferate, what’s known as “two-way charging” is becoming table stakes in the electric diving experience. In China, where more than one in five new cars sold this year was electric, more people than ever are experiencing a future in which vehicles double as power banks, and EV makers are pitching their products as “batteries on wheels.” - Bloomberg

Opening up Tesla's NACS EV connector design

Tesla has started to allow other automakers to use its EV connector design. The Tesla charging connector, which combines AC charging and up to 1 mega-watt of DC in a "slim package", is the most well-known connected in North America, the company said in a blog post. It is half the size, twice as powerful, and has no moving parts compared to Combined Charging System (CCS) connectors. "We invite charging network operators and vehicle manufacturers to put the Tesla charging connector and charge port, now called the 'North American Charging Standard (NACS)' on other equipment and vehicles", the EV maker said. - ET Auto

Power needs for EV trucks

A sweeping new study of highway charging requirements conducted by utility company National Grid Plc. Researchers in the US found that by 2030, electrifying a typical highway gas station will require as much power as a professional sports stadium—and that’s mostly just for electrified passenger vehicles. As more electric trucks hit the road, the projected power needs for a big truck stop by 2035 will equal that of a small town. - Bloomberg

Vertical integration for jobs

Ford is attempting to build as many of its own parts as possible for its EVs to offset an expected 40% reduction in workers needed to build such cars and trucks, CEO Jim Farley said recently. Farley compared Ford’s latest efforts to source its own parts to the early days of the auto industry, when companies including Ford controlled most, if not all, of the components going into a vehicle.?- CNBC

EV hoarders and climate benefits

EV adoption is finally ramping up in the US. But what the fever line doesn’t show is that it’s lumpy. A large share of battery-powered cars are being bought by households that already own an EV, or two or three for that matter. The EV early adopter has given way to the superuser or, some might say, the hoarder.?

“A, the wrong people are buying these cars,” says Ashley Nunes, a Harvard economist studying this dynamic. “And B, the way those people are using these cars makes it very difficult for them to deliver an emissions advantage.” - Bloomberg

Cheaper batteries with lower range

In the race to build a more affordable electric car, auto makers are turning to a lower-cost battery type that could lead to less-expensive options, but deliver less driving range. Several major car companies plan to deploy lithium-iron-phosphate batteries, known as LFP, a type commonly used in China, the world’s largest market for electric cars. Those iron-based battery cells cost less than the nickel-and-cobalt combination used widely in North America and Europe. But they also have less energy density than nickel-based cells, which means the battery range—the distance an EV can travel between charges—is shorter. - WSJ

Biofuel refinery for aviation fuel

United Airlines said it is investing in a startup that plans a biofuel refinery in Oregon, with expected production beginning in 2026. The carrier said its United Airlines Ventures arm could invest up to $37.5 million in NEXT, based on the company meeting certain targets, making it the first U.S. airline to invest in a biofuel refinery. United said the planned refinery could produce up to 50,000 barrels a day of sustainable aviation fuel, renewable diesel and other renewable fuels, adding that startup's location and distribution assets could increase the carrier’s supply of sustainable fuel. - WSJ