Digitization and e-mobility

Issue #209, June 26, 2023

Digital technologies continue to influence the electric vehicle (EV) and broader automotive industry, beyond just the vehicle to the entire ecosystem. With the European Union pushing for digital documentation for batteries from 2026, a consortium is getting formed to implement a blockchain-based battery passport. Shortage of electric grid parts is hampering the electrification of trucks in the US. The direct-to-customer (DTC) model gains more traction among car makers as showrooms become more of an experience in the sales cycle. Oil and gas majors have started diversifying into lithium. Tesla opens up its charging stations for more car makers. The US government is issuing a $9.2 billion load to Ford for the setup of three battery factories. Below are some recent updates on digitization and electrification in mobility.

Blockchain battery passport

A consortium of more than 120 global companies including Honda and Ford has compiled draft standards on blockchain-based "battery passports" for users to track each battery's environmental and social footprints. The European Union has decided to require such digital documentation for batteries starting in 2026. The passports provide digital records of a battery's supply chain, including the origin of the materials used, the percentage of recycled components, the amount of CO2 emissions, and human rights protections. The Mobility Open Blockchain Initiative consortium will urge the European Commission and other authorities around the world to adopt its standards, slated for release soon. - Nikkei Asia

Electric truck fleets and data centers

The rollout of heavy-duty electric trucks in the US is facing speed bumps at charging stations, where delays getting everything from parts to permits are slowing down construction of the crucial infrastructure. The delays are being fueled by a boom in power-hungry renewable-energy projects, data centers and semiconductor factories. - WSJ

Volvo's DTC model for EVs

Volvo, will sell directly to customers (DTC) its recently unveiled second EV offering in India. The auto maker will own the entire stock of cars, sell them via appointed franchise partners, invoice the new cars to the customers directly, process the order and complete them. “The role of showrooms has evolved from being transactional to experiential. This retail sales model will bring transparency and improve customer convenience", Jyoti Malhotra, Managing Director, Volvo Cars India said. - ET Auto

From oil to lithium

Oil and gas majors are stepping up efforts to break into lithium to diversify beyond fossil fuels to produce the metal critical for EV batteries. ExxonMobil, Schlumberger, Occidental Petroleum and Equinor are exploring whether their core skills of pumping, processing and reinjecting underground fluids such as oil and water could be deployed to process lithium from unconventional brine resources, helping to ease forecast shortages of a material expected to be vital for the energy transition. - Financial Times

Rivian and Tesla's superchargers

Tesla recently decide to open a portion of its US charging infrastructure to outside car manufacturers. Its superchargers are widely regarded as the most reliable in the EV industry. EV startup Rivian recently signed a deal to use Tesla’s fast-chargers, a move that could further complicate EV charging landscape in US. - WSJ

Loan for battery factories

A US government program designed to finance futuristic energy businesses is issuing a conditional $9.2 billion loan to Ford for the construction of three battery factories. The enormous loan — by far the biggest government backing for a US automaker since the bailouts in the 2009 financial crisis — marks a watershed moment for President Joe Biden’s aggressive industrial policy meant to help American manufacturers catch up to China in green technologies. - Bloomberg