The Normalization of Electric Vehicles: Infrastructure, Components, and Public Opinion

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.

Electric vehicles have been around for a while, but lately it feels like their moment in the sun has arrived. This month, we’re taking a look at the normalization of the EV industry across three critical areas: infrastructure, components, and public opinion.

Tesla to open Supercharger network to non-Tesla EVs

A top problem facing the EV industry has been the lack of accessibility to efficient, convenient charging stations. The Tesla Supercharger network is generally regarded as the most robust charging network with about 1,407 Tesla charging stations nationwide. However, until now, the Tesla Supercharger network has only been open to Tesla owners, not other EV motorists.

The news broke from a White House memo dated June 28, 2022, which read “Later this year, Tesla will begin production of new Supercharger equipment that will enable non-Tesla EV drivers in North America to use Tesla Superchargers.” If true, the move would be an important step to expand EV charging infrastructure, which is in line with the White House’s $7.5 billion plan to make EVs more accessible and affordable.

There remain significant challenges when it comes to EV charging beyond expanding infrastructure. For example, before EVs can make use of the energy flowing through chargers, it must be converted from alternating current to direct current (AC to DC). This requires improvements in energy storage and at the component level, including more efficient semiconductor devices. Similarly, for EV charging stations to rely on renewable energy, they must effectively convert energy from AC, the format in which it is produced by renewable energy facilities, into the DC that is useful for EV batteries. 

Solid-state batteries emerge, face scaling challenges

Solid-state battery manufacturer Solid Power has released a pilot line of its solid-state batteries in Colorado. Meanwhile, competitor QuantumScape is planning the development of its own specialized factories to produce its patented design. These are signs that companies are further advancing the solid-state battery field, which could bring improved efficiency and longevity to EV batteries, maximizing the range EV motorists could drive on a single charge. Less charging not only means time saved for EV drivers but also reduced demand on the electrical grid.

Solid-state batteries don’t rely on liquid, like lithium-ion batteries do in order to move ions from one end of the battery to the other. Instead, solid-state batteries forego the liquid to improve stability, reduce weight, and limit the risk of fires. For these reasons, solid-state batteries have long been seen by the EV industry as an ideal replacement for the bulkier lithium-ion batteries, which can limit an EVs range.

However, in order for Solid Power and other companies focused on developing solid-state batteries for the EV industry, scaling up production remains a moving target. Currently, Solid Power claims it is able to produce roughly 15,000 batteries per year. When you consider there are already 1.8 million EVs registered in the U.S., it’s clear that solid-state battery manufacturers will need to be able to produce more units to support the industry. That could be a challenge as access to important raw materials, such as nickel and cobalt, remains limited due to global supply chain issues and the ongoing conflict between Ukraine and Russia, one of the largest exporters of these precious metals in the world. 

Interest in EVs hits an all-time high as gas prices soar

A recent survey conducted by Consumer Reports found 14% of Americans would definitely buy or lease an EV for their next car (an increase from 10% in 2020), while 22% would seriously consider going electric. The growing interest in EVs is especially focused among those with higher incomes who live in urban areas. Additionally, people who have driven or ridden in an EV were more likely to say they would buy or lease one than those who haven’t.

Motorists that said they wouldn’t consider an EV remain concerned about charging availability, range, and overall cost. These challenges remain key priorities for the industry and the government, which has made billions available to help rectify these problems. 

By the end of 2022, there will be more than 100 EV models available on the market, with many automakers eyeing a full switch to electric cars only by the end of the decade. If demand continues to rise at the rate noted in the Consumer Reports survey, it’s no wonder why.

Electric vehicles are becoming a more common sight

While we’re a long way off from mass adoption, EVs are becoming more common on the streets of our cities and towns. That means the focus on expanding EV charging infrastructure is coming just in time. In order for the industry to keep growing, it will need to address consumer range anxiety and concerns over charging accessibility and charging times. To do so, a full-scale, nationwide effort to expand and improve the existing EV infrastructure is already underway — could this be the beginning of the normalization of EVs?

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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