New auto concepts and challenges

Issue #140, Apr 21st, 2022

The automotive industry faces new challenges and comes up with innovative solutions in this period of turbulence. Audi's concept car for dense traffic driving is one with spacious interiors with advanced features for a mobile office. GM's strategy to manage the battery material shortage is to get into a long term agreement with a supplier. Mazda's plan is to use its rotary engine to improve the range of its electric vehicles (EVs). Auto component supplier Denso has started training its engineers in software to manage the growing demand for digitization in the move to mobility from just vehicles. EV maker Rivian CEO feels batteries could face a severe shortage like semiconductor chips and supply chains are non existent for large scale manufacturing of EVs. Below are some recent interesting initiatives and challenges in the automotive industry.

Audi's concept car for dense traffic

Audi is adding a “lounge on wheels” to its recent portfolio of electric concept vehicles that are designed to portray the automaker’s vision for the future of transportation. The new “Urbansphere” concept was designed for travelers in highly dense traffic areas as a third living space and mobile office. Its interior features a modern design with wood and technologically advanced features such as a stowaway steering wheel and large video display across the front instrument panel. The term “sphere” is meant to symbolize the interior space for drivers and passengers. Automakers routinely use concept vehicles to gauge customer interest or show the future direction of a vehicle or brand and are not meant for sale. - CNBC

Multiyear agreement for battery materials

Car companies are concerned about rising costs for raw materials such as cobalt, lithium and nickel.GM has struck a multiyear agreement to source cobalt from commodities firm Glencore Co., the latest in the auto industry’s rush to secure key battery ingredients for EVs as raw materials prices rise. GM said Glencore will supply it with cobalt, a critical metal used in the production of batteries, from its operation in Australia. The auto maker plans to use the material in its proprietary batteries, which are expected to power new plug-in models. - WSJ

Rotary engine for better EV range

Mazda is planning to revive its iconic rotary engine in a plug-in hybrid car by the end of this year as it attempts to simultaneously please fans and cope with tougher environmental rules in its main markets, such as Europe. The MX-30's rotary engine will generate electricity to power the electric motor and other systems in the car. - Nikkei Asia

Auto parts to software engineers

Denso, a leading auto parts maker and member of the Toyota Motor group, plans to retrain 1,000 of its component engineers as software developers by 2025. This is part of the overall industry's transition from vehicles to mobility. Denso's leadership sees the vehicle’s value to be defined by its role as an IoT device in addition to its existing value as an enjoyable means of transport. Training of its automotive engineers in software will help this transition. - Nikkei Asia and Denso

Nuclear power on trucks

Mitsubishi Heavy Industries plans to develop and commercialize nuclear reactors small enough to be delivered on trucks by the end of the next decade, hoping to draw on demand for non-carbon emitting energy. The microreactors will be able to provide power to remote and disaster-hit areas. - Nikkei Asia

The missing battery supply chain

Rivian Automotive Inc. Chief Executive RJ Scaringe is warning that the auto industry could soon face a looming shortage of battery supplies for EVs — a challenge that he says could surpass the current computer-chip shortage. Car companies are trying to lock up limited supplies of raw materials like cobalt, lithium and nickel that are key to battery making, and many are constructing their own battery plants to put more battery-powered models in showrooms. - WSJ