The EV conundrum

Issue #160, Aug 24th 2022

The electric vehicle (EV) industry continues to face conundrums as sales picks up globally. Swapping of batteries is an interesting business model. But interoperability is a question - how flexible or open should the standards be? The Indian government and businesses seem to be facing this question of rigid standards vs keeping it open. In China, the challenge faced for battery swapping is the facilities required and cooperation from EV manufacturers. The size of EV tires seems to be another bone of contention - aesthetics with large tires or the optimal size for better driving range? Tax credits for EVs in U.S. seem to have some strings attached to them in the near future due to the need for localization and domestic manufacture of critical parts and materials in the near future. Dodge is planning to mimic the sounds and sensations of an engine driven vehicle in its EVs. Britain has laid out its autonomous vehicle roadmap for 2025. Here some recent media updates that talk about such conundrums in the EV industry.

Battery swapping and interoperability

With no global standard for battery-swapping interoperability, India is trying to bring one. But the industry does not seem to be on the same page with the government. Companies favour a more open approach and suggest that multiple interoperable ecosystems should be allowed to emerge and co-exist in the Indian market. - Economic Times

Challenges for BaaS in China

Contemporary Amperex Technology (CATL), China's world-leading manufacturer of automobile batteries, is stepping up preparations to launch battery rental services for EVs. "Battery as a service," or BaaS as the model is known, will allow drivers to rent and swap out batteries under a subscription pricing model. A depleted battery can be swapped for get a fresh one in as little as a minute, CATL said. Battery swapping is a small but growing market CATL hopes to set the standards for. CATL currently faces a series of challenges on realizing the service, such as constructing facilities and getting cooperation from EV manufacturers. - Nikkei Asia

EV tires - looks vs performance

Where the rubber hits the road on electric car range, size matters and comes at a cost. When it comes to wheels and tires — there’s an escalating battle between physics and aesthetics. More often than not, the latter is winning, as the people who buy EVs (and the people who make them) choose bigger, stickier, “spokier” options that prize looks and performance over efficiency. - Bloomberg

Strings for EV tax credit in U.S.

A tax credit for EVs wrapped into landmark US climate legislation comes with an asterisk: later this decade, there will be years when not a single car qualifies for the $7,500 subsidy. The law signed by the President last week immediately requires that any EV sold in the U.S. must be assembled in North America to qualify for the credit. The requirements grow stricter in 2024, when eligible EVs must have battery components not made or assembled “by a foreign entity of concern”, which includes China, the dominant battery producer. In 2025 those batteries must exclude “critical minerals” extracted, processed or recycled from the same foreign countries. An increasing share would need to be from North America or selected trade partners. - News Logic

Britain's autonomous vehicle road map

Britain said recently that it wanted a widespread rollout of self-driving vehicles on roads by 2025, announcing plans for new laws and 100 million pounds (US$119.09 million) of funding. The government said it wanted to take advantage of the emerging market for autonomous vehicles, which it valued at 42 billion pounds and estimated could create 38,000 new jobs. While some vehicles with self-driving features could be allowed on large roads by next year, the announcement also set out the framework for a much wider rollout, including public transport and delivery vehicles. - Channel News Asia

Mimicking an ICE car

Dodge, famous for offering cars with big and powerful V8 engines, is phasing out some of its iconic, gas-powered muscle cars in favor of electric power. To ease fans into this new era, the company has opted to mimic some muscle car sensations — including shifting gears and a loud exhaust — in an electric concept car it unveiled recently. Dodge designers and engineers felt electric car drivers might miss the sounds and sensations of a transmission shifting, so, even though it's not really needed, the Charger Daytona has a multi-speed transmission. - CNN