Passenger Cars, Minivans, and SUVs | Power Systems Research

2022-09-29

Can EV Enthusiasm Trigger Global Growth?

Consumer adoption of EVs has gathered momentum this year, spurred by higher global oil prices. The Russia-Ukraine war has made EVs suddenly more appealing to many car buyers, accelerating adoption globally. The higher oil prices are driving EVs closer to cost parity with internal combustion engine (ICE) vehicles. In Bloomberg New Energy Finance’s most recent Electric Vehicles Outlook 2022 report, it projected EV sales to hit 20.6 million units by 2025.

On Tesla’s most recent earnings call, Elon Musk admitted, “We do not have a demand problem but a production problem.” Other car manufacturers such as Ford, for instance, says it can build its F150 Lightning and the Mustang Mach E fast enough to keep up with demand

Cummins Jumps On New Energy Storage Iron Salt Formula

Guy Youngs

Cummins $24 million stake in the startup VoltStorage gives them a foot in the door with new iron redox flow technology. There is nothing wrong with lithium-ion energy storage but global demand for energy storage has nowhere to go but up, and so are lithium prices. While lithium is relatively abundant in the ground, but current supply is falling behind demand. At the same time, lithium extraction is messy and has significant environmental impact, causing local opposition to new mines and other facilities which could stall development. Aside from accessing a recyclable supply chain that can avoid conflict issues, flow battery fans note a long list of advantages over lithium-ion technology including lower cost, longer duration, and ease of scalability

Source: CleanTechnica Read The Article

PSR Analysis: Cummins has been making investments into EVs (such as the purchase of Brammo in 2017 and Meritor in 2022) for some time and this low cost, long duration, grid scale energy storage battery is part of their plan. This diversifies their portfolio of alternative power systems and helps them in the gid scale storage market. One of the major advantages for flow batteries is that they aren’t lithium-based and are therefore not subject to the same massive and sustained price increases that lithium material is seeing. PSR

Guy Youngs is Forecast & Adoption Lead Analyst at Power Systems Research

2022-09-28

Festive Demand Expected To Boost Auto Industry

Aditya Kondejkar

INDIA REPORT

Adequate rainfall across the country along with the start of the long festive season will keep the demand for automobiles positive and help keep the momentum going in this segment. Additionally, normal monsoons in most parts of the country resulting in a decent agricultural harvest kept demand positive. So, automakers are focusing on building up inventory in anticipation of higher demand

The Indian economy is poised to shrug off the modest tapering of growth in Q1 2022, and aggregate demand is firm and set to expand as the festival season sets in. Hatchback cars and affordable, non-electric motorcycles and scooters are set to register bumper sales in the coming months as India gets ready to celebrate its first ‘normal’ festive season after a gap of two years. Above-normal rains, positive consumer sentiment and a generally optimistic mood are also expected to boost sales of these entry-level vehicles.

Vinfast To Export Initial 5,000 EVs To Europe and the U.S.

Akihiro Komuro

SOUTHEAST ASIA: VIETNAM REPORT

Vinfast has announced plans to export approximately 5,000 EVs to the U.S., Canada, and Europe by the end of 2022. This is the first time for them to export EVs. The company also plans to start construction of a new EV plant in the U.S. by the end of this year, accelerating its global strategy.

According to the plan, exports to the U.S. and other countries will begin in early November, with delivery to customers starting in December. Vinfast’s CEO revealed that the company has orders for approximately 65,000 EVs worldwide.

South Korea Sees First Trade Deficit with China in 28 Years

Akihiro Komuro

FAR EAST: SOUTH KOREA REPORT

The economic relationship between China and the ROK has reached a turning point. According to statistics from the ROK, for the first time in 28 years, the ROK has a trade deficit with China. China has been the best customer of the export driven ROK economy, and this is causing concern in the ROK. At the same time, Chinese companies are intensifying their takeover of Korean companies, and in response to the escalation of the U.S.-China conflict, they have begun to pursue a strategy of using Korea as a foothold to capture the U.S. market.

A management official at South Korea’s Hyundai Motor’s joint venture plant in Chongqing, China, said that the passenger car assembly plant is idle and that negotiations are underway to sell it to a Chinese company. Hyundai Motor started operations in Chongqing in 2017, including an assembly plant with an annual production capacity of 300,000 units, but sales slumped due to the rise of Chinese automakers. At one point, the company occupied second place with a market share of nearly 10%, but recently it has fallen below 2% and slumped to 10th place.

2022-08-20

BorgWarner Buys EV Charging Company

Guy Youngs

Global auto supplier, BorgWarner has announced it is buying EV charging company Rhombus Energy Solutions. The deal will boost its EV charging presence in North America while adding to its European market and will accelerate its charging business by leveraging its existing capabilities. This is the latest in a round of EV related acquisitions the company has made. In August 2021 it took control of AKASOL,(a German EV battery company) and in March 2022, BorgWarner acquired 100% of Santroll Automotive Components (a light vehicle eMotor business).

Source: Electrek Read The Article

PSR Analysis: This acquisition will generate good revenue for BorgWarner and continues their move into this market. It’s also a good example of the many acquisitions that OEMs are making into the broad arena of electric power as they see future opportunities. Other recent examples include: Nikola acquiring Romeo Power to bring its battery supply inhouse, Terex investing in Acculon Energy, and Cummins acquiring Meritor (Cummins believes eAxles will be a critical integration point within hybrid and electric drivetrains). PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Tesla Offers Lounges at Supercharger Stations

Guy Youngs

Tesla has linked up with bk World to provide its Supercharger stations to offer services to customers while their vehicles charge. Tesla has been trying to deploy its Supercharger stations at properties that include amenities that offer food, coffee, and restrooms, but that is not always easy. At a few locations, Tesla has deployed its own lounges to offer those amenities, including one test site in Germany which even has a swimming pool, and another has a restaurant.

Source: Electrek Read The Article

PSR Analysis: With over 300 lounges planned in Europe, Tesla is trying to make the recharge wait time more enjoyable for customers, and at the same time generate another revenue stream. Providing customers with activities while they wait could encourage charger use and could develop charging stations into a destination location like selling customers of IKEA meatballs when they visit a store. Anything to help relieve the boredom of a charge waiting time that can run to an hour or more is an improvement. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Australian Solar Park Could Generate Hydrogen for Less Than $2/kg

Guy Youngs

Frontier Energy conducted a pre-feasibility study (PFS) at its Bristol Springs Solar project in Australia to show that it has the potential to be a low-cost green hydrogen producer, with power sourced from the company’s planned first stage 114 MW DC solar farm. The solar would power a 36.6 MW alkaline electrolyser, producing an estimated 4.4m kilograms of green hydrogen per year.

Source: PV Magazine Read The Article

PSR Analysis: With green hydrogen costs being around $3/kg to $6.5/kg, production of green hydrogen at this cost significantly boosts the use of hydrogen as a fuel for either Hydrogen ICEs or FCEVs. It also closes the price gap with dirty hydrogen which is generated using fossil fuels. Dirty hydrogen costs around $1.8 per kg, according to S&P Global. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

BMW Focuses on Hydrogen Fuel-cell EVs

Guy Youngs

BMW remains primarily focused on electrified combustion engines and battery electric cars, but it is adamant that hydrogen FCEVs (Fuel Cell Electric Vehicles) will play a part of its transportation package. A limited batch of hydrogen-fueled BMW X5s soon will enter production, and the company says it is already planning for the next model with FCEVs making their way into its 2025 next-generation electric vehicle portfolio

Source: H2 Energy News Read The Article

PSR Analysis: This moves BMW into the Toyota/Hyundai camp supporting FCEV, with Tesla and VW being firmly in favor of battery-powered Electric Vehicles only. BMW is developing its position so that it can offer a full range of alternative power vehicles and meet customer demand whichever way it goes. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

2022-07-20