EVs Hit Major Milestone As Industry Plans For Electrification, Sustainability Move Forward

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 efforts by EV manufacturer Stellantis to electrify its dealer network, efforts to create a traceable and sustainable EV battery supply chain, and a big milestone (literally) for plug-in EV motorists.

Stellantis U.S. dealerships prepped for electrification

Stellantis is moving forward with a plan to address a challenge facing many leading auto manufacturers: their dealer networks’ preparedness for a transition to electric vehicles. Called Dare Forward 2030, the plan is designed to work with the 2,600 dealers throughout Stellantis’s network to prepare them for electrification, offering on-site consulting services and evaluation of integration needs to meet growing EV demand. The company anticipates that more than 50% of sales throughout its dealer network will be EVs by 2030. 

"As we accelerate the drive toward electrification, Stellantis is in full-execution mode with an electrification strategy designed specifically to address the needs of our dealership network," said Phil Langley, head of network development, FCA - North America. "We are working lockstep with our national dealer council to develop and support their long-term plans during this industry-changing transition. From business operations and inventory management to service centers and employee culture, our goal is to work directly with our dealers to best prepare for, be successful in and address any challenges they may face as the automotive industry continues to move toward electrification."

Stellantis has partnered with Future Energy to help bring its dealer network up to speed. Future Energy will provide consultative services on energy and infrastructure requirements, dealership staff education, review for EV tech and charging solutions, and support with financial incentive programs.

Public-private partnership launches for sustainable EV battery supply chain

Tesla, Quebec, LG and other companies have banded together to form the Global Battery Alliance (GBA), a public-private partnership focused on establishing a stable, reliable supply chain for the manufacture of EV batteries. To support this idea, the GBA has come up with a “Battery Passport” that would help track the source of components used in EV batteries. This includes tracking components like the cathode, anode, electrolyte, and separator, as well as the minerals used to make them from the moment they’re mined. 

“The Battery Passport is a digital representation of a battery that conveys information about all applicable ESG and lifecycle requirements based on a comprehensive definition of a sustainable battery,” reads the GBA’s website. “Each Battery Passport will be a digital twin of its physical battery enabled by the digital Battery Passport platform, which offers a global solution for securely sharing information and data. This platform aims to go beyond enabling the performance management of just one battery to that of all batteries across the full industry value chain.

Any EV battery supply chain will inevitably need to include semiconductor devices, critical electrical components used in the manufacture of EV batteries. Measures like the CHIPS Act, signed by President Joe Biden earlier this year, underscore the importance that semiconductor devices and other EV battery components are expected to play in the coming years. 

Sourcing EV battery components from North America or countries with free trade agreements with the U.S. is a prerequisite for companies to realize the full tax credits available under the law. So the GBA Battery Passport may be a crucial step in building a supply chain that supports the industry for years to come.

EVs have traveled a total of 19 billion miles on electricity in 2021

EVs have come a long way since they first reached the market --- literally. 

According to the U.S. Department of Energy’s Vehicle Technologies Office, plug-in EVs eclipsed 19 billion miles driven on electricity in 2021. Estimates suggest that EVs saved roughly 700 million gallons of gasoline nationwide.

That brings the total electrified mileage driven by EVs since 2010 to 68 billion miles, according to a study performed by the Argonne National Laboratory. In the past 12 years, it is estimated that EVs have reduced gasoline consumption by 2.5 billion gallons, saving billions of dollars total.

The news comes as EVs increased to about 4% total market share of American automobiles, foreshadowing a near-future of mass adoption and normalization. That makes efforts like Stellantis’s and the GBA’s all the more important, as motorists ready for mass adoption will need dealership networks, supply chains, and infrastructures in place to meet their demand for EVs.

The EV industry is maturing as demand rises

The EV industry is working night and day to build supply chains, bring dealer networks up to speed, and establish the widespread infrastructure needed to support the coming world in which all new vehicle sales will be EVs. We’re not quite there yet, but we’re on our way, and it’s critical to lay the groundwork now. To do so, that will take funding.

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 charging 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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