Here’s how to accelerate the electric vehicle revolution

At the end of 2021, Germany announced that sales of new internal combustion engine (ICE) vehicles would end in 2030. This decision did not take the industry by surprise, although the country has the one of the largest used ICE fleets in the world and being the proud home of traditional brands such as Mercedes-Benz, Audi and Porsche. With more than 40 countries pledging to phase out ICE vehicles by 2050, Germany has simply joined the international race to reduce emissions and electrify transport.

Globally, electric vehicle (EV) sales are up 80% in 2021, and companies like Toyota and Volkswagen have announced $170 billion in electrification investments. In addition to eliminating tailpipe emissions and tackling some of the 23% of global CO2 emissions generated by the transport sector, electric vehicles also provide essential flexibility to the grid as we move to a greater share of renewable energy (RE) supply. However, despite this global push, electric vehicles only accounted for 7.2% of global car sales in 2021. The electric revolution still has a long way to go.

Capital cost has always been a major factor in the decision to buy an EV, with 63% of consumers finding an EV to be beyond their budget. However, with the cost of batteries falling and cost parity between electric vehicles and ICE vehicles to be achieved by 2026, attention is turning to the challenge of scaling up the necessary infrastructure and the supply of raw materials to enable the mass adoption of electric vehicles. Here are four of the issues we face:

1. Inadequate charging infrastructure

Compared to traditional gas stations, charging stations are more difficult to find, normally limited by investment costs and difficult infrastructure development. The cost of installation — from $2,500 for a slower charger to $35,800 for a fast charger — along with various fees, such as permits and regulations, have made charging stations an expensive investment. Additionally, allowing people to charge where they usually park, at home or at work, presents its own challenges, such as managing multi-tenant buildings, managing grid connection, and availability of charging locations. This results in a smaller network of functional charging stations and has deterred consumers from switching to electric vehicles.

Power grids are already under strain as we face a greater share of renewables and the challenge of a more intermittent energy supply. Increased adoption of electric vehicles adds additional electrical load, potentially requiring new investments in grid infrastructure to meet this increased demand. Predicting when and where that power is needed is another challenge facing utilities and power producers as they strive to understand the rapidly growing electric vehicle market. However, the risk of grid overloading is lower if EVs were to be charged during off-peak hours, i.e. late at night or early in the morning.

3. High Carbon Grid Profile

Gray power grids, with their heavy reliance on fossil fuels, reduce the efficiency of electric vehicles as a way for businesses and consumers to reduce their emissions. Therefore, decarbonizing the grid as much as possible is crucial to convince buyers that their switch to an EV is worth it and reduces carbon emissions.

4. Finite critical minerals and rare earth metals

Electric vehicles use about six times more mineral inputs than ICE vehicles. IEA forecasts of 70 million electric vehicles on the road by 2040 will come with a 30-fold increase in demand for minerals. There is no shortage of these underground resources, but rather a concern as to whether they will be extracted sustainably, in accordance with social responsibility governance, and in time to meet demand. It is expected that there will be a nickel shortage and challenges in increasing lithium production. This supply shortage can also cause manufacturers to use lesser quality mineral inputs, which negatively affects battery performance.

Technology will play an important role in establishing charging and network infrastructure and maintaining a steady supply of essential minerals to support the widespread adoption of electric vehicles at an affordable cost.

1. Smart and flexible charging

Cars are normally idle 95% of the time. Smart, flexible charging technology uses unused power from car batteries to provide additional power to the grid during peak periods or, in some cases, intelligently interrupts or reduces charging power. Conversely, it allows consumers to charge during off-peak hours, at one-third or less of the price of peak-hour charging, thereby reducing peak-hour network congestion and costs to consumers. By allowing EV owners to schedule charging based on power constraints, price, and priority, and sell unused power back to the grid, the charging system can better anticipate sudden spikes in electricity demand. The technology also enables the grid to increase capacity, meet increased demand for electric vehicles at lower cost to consumers, reduce grid system stress and avoid energy price spikes.

2. Intelligent energy management for efficient electric vehicle charging management

Energy management systems orchestrate the generation assets (such as solar or wind facilities) and demand assets (such as EV chargers, heating and cooling systems, and lighting) of a energy system on an integrated digital platform. This enables real-time monitoring of asset health and performance through Internet of Things (IoT) connectivity and AI-based algorithms, which in turn maximize renewable energy consumption, thereby reducing operational costs and investments in the system. It also allows electric vehicles and stationary storage to be co-optimized with other grid-connected assets, providing additional grid stability services compatible with local renewable energy resources, to balance the load and ensure a stable energy supply. and stable market prices.

3. Battery monitoring, analysis and recycling

Monitoring and analysis of AIoT-enabled batteries for electric vehicles and stationary storage enables predictive maintenance and usage optimization that can extend battery life, helping to reduce the need for new batteries and supply chain pressure. Additionally, the data can help make better decisions about when to reuse or recycle batteries and identify individual cells that are damaged (vs. disposing of the entire battery), simplifying and thus optimizing the recycling of lithium-ion batteries.

With the transition to electric vehicles well underway, fueled by growing environmental concerns, government legislation and financial incentives, the challenges presented by this shift are only growing. Fortunately, along with other hardware, manufacturing, and supply chain solutions, AIoT-assisted technology allows us to overcome many challenges. Smart charging technology improves charging infrastructure and customer experience. Smart energy management improves the management of EVs and stationary loads, reduces the risk of grid overload and enables greater consumption of renewable energy. Battery monitoring, analysis and recycling alleviate supply shortages faced by increasing demand for battery minerals by extending life and reuse.

With the global drive to reduce emissions coupled with technologies accelerating the electrification of transportation, more countries will follow Germany and others in banning sales of combustion engine vehicles. Knowing that the ban could be implemented as early as 2030, the question that remains is: are businesses, neighborhoods and cities ready to switch to electric vehicles during this decade?