The electric vehicle (EV) space is constantly changing, powered by developments, innovations, and policy shifts worldwide. This news update brought to you by Ideal Power offers a round-up of just some of the most eye-catching headlines around electric vehicles and the market opportunities associated with them.
This month, we’re taking a look at trends in the EV market, from consumer spending to manufacturers developing more cost-effective vehicles, as well as how the federal government is getting involved by meeting stakeholders and unlocking funding.
Global sales of plug-in electric vehicles doubled in February
More than half a million new electric vehicles were registered in February 2022, a 99% increase over the year prior, according to InsideEVs. Market share for electric vehicles amounted to 9.3% in February. For the first two months of 2022, more than 1.14 million new electric vehicles were registered globally, doubling year-over-year, with a roughly 9% market share.
The two most popular electric vehicle models worldwide were the Tesla Y and Tesla Model 3, which saw 45,236 and 30,268 new registrations through February, respectively. Those were followed by the Wuling Hong Guang MINI EV at 26,116 registrations, the Song PHEV at 19,061 registrations, the Qin PHEV at 14,243 registrations, and the Tang PHEV at 10,032 registrations.
GM and Honda partner to develop a $30,000 EV
Cost has been a major barrier to buying electric vehicles for many motorists, but that might not be the case for much longer. General Motors and Honda Motors have targeted the development of more affordable EVs that cost $30,000 or less, a goal they hope to achieve by creating designs on GM’s new Ultium battery platform, according to a report from CNBC.
The announcement is not the first time GM and Honda have partnered closely together. Previously, Honda invested $750 million in GM’s autonomous vehicle unit, known as Cruise, and GM agreed to develop two EVs for Honda for 2024, helping the company pivot into the EV market while it remains focused on hybrids and conventional fuel-efficient vehicles.
“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” GM Chair and CEO Mary Barra said in a statement.
Although the news is welcome for drivers looking to get into the EV market, they may have to wait a while — the companies don’t expect the affordable models to reach the market until 2027.
Federal government doubles down on EV grid expansion
The U.S. federal government further emphasized its focus on expanding electric vehicle charging stations and an EV grid following a meeting with EV industry leaders, according to a report from CNBC. A statement released by the White House following the meeting said “there was broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience, no matter what car you drive or where you charge your EV.”
Attending the meeting were Tesla CEO Elon Musk, GM Chair and CEO Mary Barra, Ford Motor Chief Executive Jim Farley, Stellantis (Chrysler) CEO Carlos Tavares, Lucid CEO Peter Rawlinson, and Nissan Americas chair Jeremie Papin.
The meeting reportedly centered on the topic of federal funding to support the creation of a national EV charging network of 500,000 chargers. The meeting comes just weeks after a plan to create grants worth $5 billion over five years for the expansion of electric vehicle charging stations. That plan, called the National Electric Vehicle Infrastructure Formula Program, is part of a larger $7.5 billion spending plan aimed at improving the nation’s electric vehicle grid, adding charging stations, and reducing motorist “range anxiety” to incentivize mass adoption.
Also attending were Transportation Secretary Pete Buttigieg, Energy Secretary Jennifer Granholm, National Climate Advisor Gina McCarthy and Infrastructure Coordinator Mitch Landrieu, along with executives from Hyundai Motor America, Subaru of America, Mazda North America, Toyota Motor North America, Mercedes-Benz USA and Kia Motors America.
Are we witnessing electric vehicles go mainstream?
This past month held good news for proponents of the EV industry, keeping up the momentum that came with the unveiling of the federal infrastructure bill. Between surging sales worldwide, progress toward more cost-effective EVs, and public-private collaboration between leading companies in the EV industry and the White House, there’s a lot of reason to be optimistic about the near future of electric vehicles.
For investors, the market opportunity in electric vehicles remains immense. With more sales than ever slated for 2022 and a growing market expected to reach $1 trillion in value by 2026 (up from $260 billion in 2020), EVs are here to stay, especially as technological innovation strengthens the industry’s value propositions. While consumer spending increases, manufacturers target lower price points, and the federal government gets serious about expanding the electric vehicle grid, we could finally be witnessing electric vehicles preparing to go mainstream.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dan Brdar
Dan Brdar is the President, CEO and a Director of Ideal Power. He has over 30 years of experience in the power systems and energy industries and has held a variety of leadership positions during his career. In addition to his role at Ideal Power, Dan previously served as President and CEO of FuelCell Energy Inc., a Nasdaq-listed company with a market cap of over $250 million.
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