Electric Mobility Opportunities and Challenges in The Clean Fuel Industry

Electric Mobility: Opportunities and Challenges in
the Clean Fuel Industry

September 2021
© Euromonitor International 2021. All rights reserved.

© Euromonitor International
This PowerPoint presentation includes proprietary information

from Euromonitor International and cannot be used or stored with
the intent of republishing, reprinting, repurposing or redistributing
in any form without explicit consent from Euromonitor International.
For usage requests and permission, please contact us

http://www.euromonitor.com/locations.
The data included in this report is accurate according to

Euromonitor International´s market research database,
at time of publication: September 2021
Contents
Introduction
EV Industry Overview
EV Charging Industry
EV Battery Industry
Final Remarks
INTRODUCTION 44
Scope
The briefing examines the global
development of the EV industry. It breaks
down the analysis into three key pillars: EV
industry overview, EV charging industry and
EV battery industry. Each section seeks to
shed light on the dominant trends,
opportunities and challenges for businesses
operating or seeking to operate in the EV
industry. The briefing also provides numerous
case studies of how companies are investing
in and innovating in the fast-growing EV
industry.
Disclaimer
Much of the information in this briefing is of a
This report analyses the electric vehicles industry (henceforth EV industry). The report will statistical nature and, while every attempt has
include an in-depth look at the EV passenger car market, EV charging and the EV battery been made to ensure accuracy and reliability,
industries. Euromonitor International cannot be held
responsible for omissions or errors.
Unless otherwise noted, all values expressed in this report are in US dollar terms, 2021 figures Figures in tables and analyses are calculated
are based on part-year estimates. from unrounded data and may not sum. Analyses
found in the briefings may not totally reflect the
All forecast data are expressed in constant 2020 prices. companies’ opinions, reader discretion is advised.
INTRODUCTION 55
Key findings (1)

By 2040, EV registrations (BEV, PHEV and HEV) across 46 major markets are
EV registrations to surge by 2040 predicted to total 114 million. This will be equivalent to 84% of all new passenger
car registrations.
Major automotive brands, including General Motors, Ford and Volkswagen, are
Automakers are transitioning towards pivoting towards the EV sector. This stems from increased government restrictions
EV production on internal combustion engines, coupled with strict regulations on carbon
emissions.
Public charging stations are becoming more commonplace. In 2021, across 45 major
Public charging availability is growing,
economies, 1.4 million charging stations are forecast – up from 1.1 million in 2020.
with China the global leader
China is the global leader, with 940,000 public EV charging stations, accounting for
67% of all stations globally.
New strategic partnerships forming in New partnerships are forming between different industry players, such as retailers,
the EV charging industry EV charging firms, infrastructure investment companies and energy firms, to name a
few. This is opening up opportunities for companies to add new revenue streams,
while for others it is a way to diversify and move away from the fossil fuels industry.
Battery industry to double in value by Global battery production value is forecast to nearly double over 2020-2030, to
2030 reach USD454 billion. China is forecast to account for almost 55% of global battery
production value in 2030.
INTRODUCTION 66
Key findings (2)
Price parity with internal combustion It is predicted that battery prices will continue to decline, albeit at a slow rate, and
engine vehicles to be reached in 2025 reach USD100 per kWh by 2025. This price point is expected to make electric
vehicles evenly priced with internal combustion engine cars.
EV Industry Overview
EV INDUSTRY OVERVIEW 88
Global electric vehicle sales forecast to expand 10-fold over the next two decades
Global electric vehicle sales (including pure electric vehicles, hybrid and Global Electric Vehicle Registrations, 2020-2040
plug-in hybrids) stood at 10.4 million units in 2020. The number is 120,000
forecast to expand by almost 10 times and reach 114 million units in
2040. This is predicted to represent 84% of the new vehicle market.
100,000
Hybrid electric vehicles remain the most popular, as they help to bridge
the gap between internal combustion engine and pure electric vehicles.
80,000
Moreover, hybrids are often a more economically viable option for
consumers than petrol or diesel cars, thanks to the better fuel economy
‘000 units
and lower taxation. As of 2020, hybrids represented 53% of global 60,000
electric vehicle sales.
However, hybrid vehicles’ share is forecast to decline gradually to 40,000
around 6% of global electric vehicle sales in 2040. Expected increases
in energy prices and stricter emission regulations, essentially ruling out
the sale of new cars with internal combustion engines, are expected to 20,000
erode hybrids’ share. Moreover, an improving supply of pure electric
vehicles and expanding driving range is anticipated to lure more hybrid
0
buyers towards pure electric vehicles. 2020 2025 2030 2035 2040
Plug-in hybrids is expected to remain a niche category, accounting for Plug-in Hybrid Electric Vehicle (PHEV) Registrations
3% of global electric vehicle sales in 2040. Higher prices, limited Hybrid Electric Vehicle (HEV) Registrations
government subsidies for plug-ins and less convenience in comparison Battery Electric Vehicle (BEV) Registrations
to hybrid vehicles is set to limit the appeal of this segment. Source: Euromonitor International from national statistics
Asia and Europe to drive electric vehicle market growth

China is forecast to remain the largest electric vehicles Largest Electric Vehicle Markets by Car Type, 2040
market, with almost 45 million electric vehicles expected to
China
be sold in 2040. The presence of strong domestic automotive
and battery industries, as well as efforts to reduce pollution US
in cities, are expected to drive demand for electric vehicles Japan
over the forecast period.
India
Other Asian countries, including Japan, India and South
Germany
Korea, are also expected to remain among the largest electric
vehicle markets. Young populations, rising new vehicle sales UK
and stricter environmental regulations are forecast to drive France
electric vehicle sales in India. Sales in Japan and South Korea
South Korea
are anticipated to be driven by investment in new mobility
technologies and the replacement of internal combustion Italy
engine vehicles with battery-powered vehicles. Canada
European countries are also forecast to drive demand for 0 10,000 20,000 30,000 40,000 50,000
electric vehicles over the period to 2040, with Germany, the ‘000
UK, France and Italy being among the largest markets
Battery Electric Vehicle (BEV) Registrations
globally. Stricter emission standards and restrictions on the
Plug-in Hybrid Electric Vehicle (PHEV) Registrations
use of internal combustion engines vehicles in cities
are anticipated to drive demand for battery-powered vehicles Hybrid Electric Vehicle (HEV) Registrations
in Europe. Source: Euromonitor International from national statistics

10
Emerging markets to witness fastest electric vehicle market growth

Global sales of battery electric vehicles are Fastest-growing Battery Electric Vehicle Markets, 2020-2040
forecast to expand by 32 times over 2020- 50%
2040, to reach 104 million units in the latter
year. Mexico
45%
The largest new car markets are also forecast India
to dominate pure electric vehicle sales;
however, in terms of growth, emerging 40%
markets are forecast to offer most expansion
% CAGR 2020-2040
opportunities for car manufacturers. Stricter Thailand
environmental standards, investment in 35% South Africa
infrastructure expansion and still rising car
ownership rates are expected to benefit sales Ecuador
of electric vehicles in emerging markets. 30%
Brazil Japan
Japan is forecast to see particularly strong
Poland
expansion in its electric vehicle market in Slovakia
25%
absolute terms. An advanced hi-tech goods Lithuania
industry, developed battery technologies,
stricter emissions standards and an already 20%
large domestic new car market are forecast to 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
contribute to growth in electric vehicle sales. Absolute sales volume growth (‘000 units), 2020-2040
Source: Euromonitor International from national statistics
11
Europe is forecast to have the largest market share of electric vehicles

In terms of battery electric vehicle market share, Norway and the Battery Electric Vehicles Market Share in Selected
Netherlands were the leaders in 2020, with pure electric vehicles Countries, 2020-2040
accounting for 43% and 17% of the new car market, respectively. 2020 2040
The availability of cheap electricity, incentives for electric vehicle Germany
buyers and strict pollution regulations are driving demand for
UK
electric vehicles.
European countries are forecast to lead in terms of electric vehicle Netherlands
market share by 2040. Germany is forecast to have the largest
Norway
market share for electric vehicles in total vehicle sales in 2040,
standing at almost 90%. Strict emissions standards, restrictions on France
internal combustion engine car usage in cities and large-scale
investment in electric vehicle production are anticipated to drive Japan
demand for electric cars in Europe.
South Korea
Japan, South Korea and China are forecast to lead electric vehicle
adoption in Asia, with electric vehicles forecast to represent around China
75% of the new car market in all three countries in 2040. US

Investment in electric vehicle infrastructure and plans to reduce
CO2 emissions are forecast to drive electric vehicle adoption in Canada
Japan and South Korea. In China, the country’s efforts to reduce 0% 20% 40% 60% 80% 100%
pollution in cities and support for green vehicle buyers are % of total new car registration
anticipated to drive electric vehicle sales. Source: Euromonitor International from national statistics
12
Higher EV registrations in more affluent markets, but more affordable EVs appearing
Electric vehicles have typically been a luxury purchase, due to their EV Registrations and Household Disposable Incomes,
high initial cost. For example, in 2017, when EVs were starting to 2021
enter the market, a new Tesla Model X cost USD87,000-150,000. 90%
The high cost is one of the reasons why EV penetration has been
Share of EV registrations from passenger car registrations

Norway
higher in more affluent markets, especially in Western Europe; 80%
however, not all rich countries have seen a significant surge in EV
70%
registrations, with Singapore, the US, Ireland, Canada and
Switzerland seeing only slow adoption. Differences stem from
60%
factors such as government mandates on sustainability, financial
incentives and EV subsidies, and infrastructure availability. In the US, 50%
EVs have been slow to catch on partly due to the low price of petrol, Sweden
which has not incentivised consumers to make the switch. 40%
Falling EV battery prices, coupled with a larger number of Netherlands
30% Denmark
automakers moving into the market, are, however, generating a Finland
larger supply of low and mid range electric vehicles, and this is France
Germany
Switzerland
20%
helping automakers tap into the mass market. China is a frontrunner Underserved markets
UK
in affordable EVs. In 2020, Hong Guang Mini EV, produced by a SAIC- China
10% Spain Canada
GM-Wuling joint venture partnership, went on the market for just Italy Singapore
Brazil US
USD4,500. In January 2021, the Hong Guang Mini EV outsold the 0% South Korea Japan Ireland
Tesla Model 3 by two to one in China. This indicates that in the 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
space of less than five years, EVs have shifted from being solely a Household disposable income (USD)
luxury purchase to a mass-market product. Source: Euromonitor International from trade sources, national statistics
13
Challenges of EV adoption
Challenge What is it? Why is it a problem? Opportunities
Range anxiety Range anxiety is the fear that an It creates an additional level of unease and Companies such as Byd Co Ltd
electric vehicle will run of charge prior concern that an electric vehicle is are developing blade batteries
to reaching the end destination or a impractical, especially when it comes to which have much larger storage
charge point. making ad hoc journeys. capacity, thereby providing
greater driving ranges.
High price Electric vehicles are generally very High prices deter people from purchasing This opens the market for players
expensive, as this is a relatively new electric vehicles, and this reduces the in the mid-low price range. Skoda
technology. Initially, electric vehicles adoption of new energy vehicles. unveiled the CITIGOe iV with a
were marketed as luxury products. price from USD20,600.
Lack of charging There is an insufficient supply of public A lack of infrastructure reduces consumer Private firms, such as Shell and
infrastructure electric vehicle charging points, which confidence in buying an electric vehicle. BP, are installing charging stations
escalates range anxiety. One of the challenges with charging at retail points and on or near
infrastructure is that it is expensive to highways.
install.
14
Opportunities: Various incentives and perks are offered to make the EV transition
Fewer restrictions
Subsidies
Free/cheaper parking
Tax benefits
•The UK is offering a •In the UK, some •In the Netherlands, •In the UK county of
subsidy of USD3,480 London boroughs, until 2024, all pure Cambridgeshire,
on new EVs under such as Hounslow, electric vehicle electric vehicles are
USD48,670. Barking and purchases will be permitted to use bus
•Germany is providing Dagenham, and exempt from lanes.
subsidies of up to Islington, are issuing purchase and motor •Fully electric vehicles
USD10,600 for the free annual parking vehicle taxes. and most plugin
purchase of EVs permits for vehicles •Canada’s federal EV hybrids are exempt
costing less than emitting less than incentive allows from the Congestion
USD47,000. 50g/km of CO2. businesses to fully Charge in London;
•In Canada, the federal •In Helsinki, electric deduct capital costs however from 2021,
government provides and low emission of zero emission hybrids will no longer
a rebate of up to vehicles benefit from vehicles, up to a be exempt, and by
USD4,000 for certain a 50% reduction in maximum of 2025 all vehicles will
EVs costing less than parking fees. USD43,600. be required to pay a
USD35,000. congestion charge.
15
Automakers are shifting their focus towards EV production

Incumbent automakers that have based their strategies on fossil Top 10 Largest Companies by Light Vehicle Sales, 2020
fuel cars are shifting towards EV production. This is being pushed by
increasing government restrictions on fossil fuel cars, which are Toyota Motor Corp
reducing their viability and appeal in the market. In 2017, France

Volkswagen AG
announced a ban on the sale of new petrol and diesel vehicles in
2040. The UK has gone a step further and pushed this to 2030, Hyundai Motor Co
while Norway has introduced some of the strictest regulations by
banning new fossil fuel car sales by 2025. General Motors Co
Ford has committed to investing USD22 billion in EV production. By Honda Motor Co Ltd
2030, the car maker is targeting 40% of its vehicles to be electric.
Toyota – the world’s largest automaker – announced a USD2 billion Ford Motor Co
investment in EVs by 2025. Similar strategies are being carried out
by other automakers, including Hyundai and Honda. Fiat Chrysler Automobiles NV
Companies understand that consumer purchasing habits are Nissan Motor Co Ltd
increasingly being impacted by corporate sustainability policies.
According to Euromonitor International’s 2021 Lifestyles Survey, two SAIC Motor Corp Ltd
thirds of global respondents reported trying to have a positive
Renault
impact on the environment through everyday actions. This will be
vital for automakers when targeting Gen Z and Millennials, as the 0 5,000,000 10,000,000
path to purchase of both these consumer groups is often influenced Number
by climate change and sustainability policies. Source: Euromonitor International from trade sources
16
Case study: GM commits to USD27 billion investment in E-mobility

Characteristic
▪ In 2020, General Motors (GM) announced a commitment to
spending USD27 billion on all-electric and autonomous vehicles
over the period to 2025. GM is planning on launching 30 new EV
models globally by 2025, 20 of which will be solely for the North
American market. By 2025, GM is seeking global sales of one
million EVs.
Context
▪ In 2021, GM announced that it plans to end sales of petrol and
diesel vehicles by 2035, as part of a wider plan to become carbon
neutral by 2040. The company is actively positioning itself in the
EV industry, and is seeking to become a key competitor to the
industry leader, Tesla, in North America. In 2019, Tesla accounted
for 75% of all EV sales in the US.
Consequence
▪ Major automotive firms are transitioning to EV production as the
industry seeks to embrace carbon neutrality. The US has been
quite slow in its adoption of electric vehicles; however, President
General Motors accounted for 6.4% of all global light vehicles sales in Joe Biden has set a target of ensuring that 50% of all new
2020, making it the fourth largest players in the automotive industry. automobile sales by 2030 are of EVs.
Source: unsplash.com
17
Case study: Volkswagen plans for 50% of its vehicles sales to be electric by 2030
Characteristic
▪ Volkswagen is making a bold attempt to push ahead in the EV
industry. The company announced that by 2030, it wants 50% of
its total vehicle sales to be electric. By 2040, this should rise to
100%. Volkswagen has pledged USD86.4 billion to the
development of future tech, with electric, connected and
autonomous vehicles being key areas of investment.
Context
▪ As part of Volkswagen’s plan to become a heavyweight in the EV
industry, it is planning on establishing a robust supply chain for EV
batteries. This will be done with the opening of six gigafactories
across Europe by 2030. Electric vehicle batteries are a major
component of EVs, and maintaining a constant supply is vital to
reaching the company’s ambitious goals.
Consequence
▪ Volkswagen, much like its competitors, is pivoting towards the EV
industry. The company understands that due to the high demand
for EV batteries, it will need to devise its own supply chain. This
Volkswagen’s light vehicles sales in 2020 were 8.5 million. This was will ensure a constant flow of batteries, thereby minimising
down from a high of 10.3 million in 2018. supply chain risks.
18
Case study: Stellantis plans USD35.5 billion investment in electrification

Characteristic
▪ Stellantis, the owner of major brands including Fiat, Peugeot and
Citroën, has pledged to invest USD35.5 billion in developing
electric vehicles and other supporting technologies through to
2025. It expects to have 55 electrified models selling in the US
and Europe by 2025, 40 of which will be fully electric. By 2025, it
is expected that 98% of Stellantis’s new models will be electric.
Context
▪ Stellantis is seeking to become a market leader in the clean fuel
industry. It wants to combat the issue of range anxiety by
developing efficient battery solutions that utilise high-energy
density nickel, as well as NiCo-free (no nickel or cobalt) chemistry.
By 2026, Stellantis aims to have solid state batteries which have
greater energy density.
Consequence
▪ Stellantis, like many of its rivals, including Volkswagen, Ford and
GM, is actively investing in the market for electric vehicles.
Government bans on the sale of internal combustion engine
By 2030, Stellantis expects battery electric and plug-in hybrids to vehicles, coupled with the growing sustainability sentiment, are
account for 40% of its sales in North America and 70% in Europe. pushing firms to make the transition to EVs.
EV Charging Industry
EV CHARGING INDUSTRY 20
20
China is the global leader in EV charging

Top 10: Public Charging Stations, 2021 Charging Stations by Type, 2021
China China
US US
Netherlands Netherlands
Germany
Germany
France
France
UK
UK
Japan
Japan
Norway
Norway
Italy
Italy
Canada
Canada
0 200,000 400,000 600,000 800,000 1,000,000
0% 20% 40% 60% 80% 100%
Number
Normal Fast
Source: Euromonitor International from trade sources, national statistics
China’s large EV charging supply underpins the country’s drive to become a leader in the EV industry. In 2020 alone, China added 204,000 charging
stations
21
Charging station numbers surge in part thanks to available subsidies and tax rebates
EV charging stations have continued to see impressive growth. In Public Charging Stations by Power, 2015-2021
2021, over 1.4 million public charging stations are forecast to be in
operation across 45 major markets globally – an eightfold rise 1,500,000
compared to 2015. The growing supply of public electric vehicle
charging stations has naturally risen with the rising uptake of
electric vehicles. Between 2015-2021, the number of electric
vehicles (BEV and PHEV) is projected to rise nearly ninefold. Across
the 45 major markets, 69% of EV charging stations are forecast to 1,000,000
have charging power of less than 22kW. Given time inefficiencies
Number
related to slower charging, new opportunities are arising for
businesses in the fast and rapid charging segments.
Governments have stepped in to incentivise companies and 500,000
households to install charging stations through financial subsidies
and tax incentives. In Austria, a subsidy of EUR300-15,000 (USD355-
17,770) is available to companies purchasing and installing publicly
accessible charging stations. In Denmark, a tax reduction of DKK1
(USD0.15) is available for companies that provide commercial EV 0
charging solutions, and Finland offers up to a 35% refund on the 2015 2016 2017 2018 2019 2020 2021
installation and purchase of charging infrastructure. However, the >22kW <22kW
availability of subsidies and other incentives is very likely to be only
a short to medium term strategy to drive EV adoption. Source: Euromonitor International from trade sources, national statistics
Note: Aggregated across 45 major markets globally
22
Opportunities can be found in markets with too few charging stations

A plentiful supply of charging infrastructure is EVs per Electric Charging Station, 2021
required for the full functioning of the EV 25
sector. The International Energy Agency (IEA), Markets with too few EV Markets with a good or adequate supply
charging stations of charging stations
recommends a ratio of 10 EVs to one
charging connection (at a European level). In 20
2021, Denmark, Portugal and Iceland all
featured an undersupply of EV charge points,
with ratios well over 10:1. This could reflect a 15
faster pace of EV registrations than the speed
Ratio
of EV charge point installations. For example,
in Denmark, the number of EV registrations is 10
expected to more than double to 68,000 in
2021, while EV charging station numbers are
set to rise by a mere 3%.
5
Together with the IEA’s recommendation,
what is also vital is the spatial distribution of
EV charging stations. Most are concentrated 0
in and around cities, making inter-city and
cross-national travel more challenging. This is
reducing the attractiveness of EVs –
especially from a logistical and commercial Source: Euromonitor International from trade sources, national statistics
perspective. Note: Markets chosen where new registrations of BEVs and PHEVs are forecast to be ≥5% of the total 2021
23
Most charging occurs privately but public charging to show the largest growth potential
According to a 2018 study by the non-profit organisation Transport Growth in Charging Stations, 2015-2021
and Environment, only 5% of EV charging occurs at public charging 1,000,000 70%
points, including on-street city charging, car parks and along road 900,000
corridors. Instead, most charging occurs privately, either at home or 60%
work. The IEA estimates that in 2020, the number of private 800,000
chargers totalled 9.5 million, of which 74% were at homes, with the 700,000 50%
rest at workplaces. This suggests that only 12% of global EV
chargers are public. 600,000
40%
Number
Growth
The growing uptake of EVs will increase demand for public charging. 500,000
Home charging is typically only accessible to people owning 400,000
30%
semidetached or detached homes, or homes with garage or parking
facilities. In the context of urban consumers living in apartments, 300,000 20%
the installation of private charging stations is not feasible. This is 200,000
going to become even more of an issue, given that the global 10%
urbanisation rate is set to rise to 60% by 2030. This will lead to 100,000
greater demand for public charging infrastructure, especially fast 0 0%

and rapid charging stations, as such consumers will not have the
privilege of charging their vehicles overnight (as opposed to
homeowners who can charge EVs overnight with slow chargers).
Public fast charging infrastructure will also facilitate longer journeys Absolute % growth
and encourage consumers to purchase EVs. Source: Euromonitor International from trade sources, national statistics
EV CHARGING INDUSTRY
EV charging is a big business that caters to a broad range of industry specialists
Companies that
install/maintain
EV charging
equipment
Manufacturers EV station
of EV charging operators
EV Charging
Infrastructure
firms charging software
providers
industry
25
EV charging industry is fostering new strategic partnerships and M&A

The EV industry is seeing a wave of partnerships being formed Global M&A Sales, 2010-2020
between EV charging firms, retailers, forecourt operators, 1000
infrastructure investors, energy firms and other industry players. 800

Waitrose, for example, has partnered with Shell to install 800
USD billion
chargers at its 100 UK stores by 2025. Aldi also signed a deal with 600
NewMotion to install 140 new chargers across the grocery
400
retailer’s UK stores. In 2020, Marks & Spencer partnered with BP
to launch rapid EV chargers as part of a trial. Following this 200
strategy allows customers to charge their vehicles, while utilising
0
the charging time to do their shopping. Grocery retailers are 2010 2020
tapping into demand from climate-conscious consumers who are
making more informed decisions about where they shop.
Top 10: M&A Sales, 2020
The EV charging industry is also fuelling blank cheque merger 120
activity through special purpose acquisition companies (SPACs). 100
USD billion
In July 2021, the Dutch electric charging company Allego went 80
public through a SPAC backed by the private equity firm Apollo 60
40
Global Management. In June 2021, Wallbox also merged with a
20
SPAC, Kensington Capital Acquisition Corp. SPAC merger activity
0
is an attractive option for fast growing industries as they can
offer attractive revenue forecasts for investors, which regular
IPOs often cannot do.
Source: Euromonitor International from UNCTAD
26
Case study: Carrefour partners with Meridiam to deliver EV charging at its hypermarkets
Characteristic
▪ The major French retail corporation Carrefour has partnered with
Meridiam, an investor in infrastructure projects.
▪ Carrefour is seeking to roll out 2,000 charge points by 2023
across its hypermarkets in France as part of the partnership.
Context
▪ The investment in EV charging infrastructure by Carrefour follows
France’s Ministry for Ecological Transition’s goal of having
100,000 EV charging points by the end of 2021. Carrefour is also
taking advantage of a EUR9,000 (USD10,600) government subsidy
given to companies investing in EV charge points.
Consequence
▪ Carrefour is the first retailer in France to offer a complete set of
charging terminals, ranging from 22kW to 350kW chargers.
▪ It is seeking to take advantage of the first mover effect and meet
In 2020, Carrefour held a 5.4% share in the global market for demand from the growing number of climate conscious
hypermarkets. consumers making the transition to EVs.
27
Case study: Motor Fuel Group to partner with Swarco in rolling out charging stations
Characteristic
▪ UK-based Motor Fuel Group (MFG) has partnered with the
mobility management firm Swarco. In 2021, Swarco will be
supplying 150 ultra rapid 150kW EV chargers at 28 sites in the UK.
MFG has set its sights on investing USD550 million to install 3,000
fast charging points at 500 locations by 2030 across the UK.
Context
▪ While few EV models are able to utilise charging power of 350kW,
the company is planning ahead, as more vehicles will have the
technological capability to accept higher charging power. Higher
charging power may also be useful for larger commercial vehicles,
which are currently underserved in the EV industry due to a lack
of demand, as very few large commercial vehicles are electric.
Consequence
▪ MFG is seeking to tap into the market for en-route charging,
meeting rising demand in the small but growing market for public
charging stations, which cater to consumers not having private
charging access at home or at work.
MFG owns and operates 900 forecourt stations across the UK.
28
Oil and gas companies and energy firms pushing ahead charging infrastructure roll-out
Pressure to tackle climate change has pushed oil and gas, and Extraction of Crude Petroleum and Natural Gas,
energy firms to make sustainability a key business priority. In 2018, 2010-2030
the French oil and gas giant Total acquired G2mobility, a provider of 3,500,000
electric charging solutions, gaining access to over 10,000 charging
stations. Also, it acquired Source London, another provider of EV 3,000,000
charging stations, in the UK, adding a further 1,600 stations. The
company’s most recent acquisition came at the end of 2020, when
it purchased Charging Solutions, and gained access to 2,000 2,500,000
charging stations in Germany.
Energy retailers have similarly jumped on the bandwagon and have 2,000,000
USD million
made investments in EV charging. Their expertise in power
distribution and transmission makes them viable players in an 1,500,000
industry requiring long-term planning. The French energy giant EDF
has made a pledge to achieve a 30% market share in the EV
charging industry in Belgium, France, the UK and Italy by 2022. The 1,000,000
company has already acquired PowerFlex Systems, a California-
based start-up that produces technology which controls EV charging 500,000
loads on the power grid. Investments by oil and gas, and energy
retailers signals an intent to diversify into the EV sector. This is
especially important for the oil and gas industry, as the use of fossil 0
2010 2015 2020 2025 2030
fuels is set to decline.
29
Case study: Shell to build half a million EV charging points by 2025

Characteristic
▪ In 2021, the global oil giant Shell announced plans to build
500,000 electric vehicle charge points by 2025. Currently, the
company has a network of 60,000 charge points globally. Shell
has acquired numerous EV charge point platforms including New
Motion, Greenlots and Ubitricitiy, as it seeks to become a leader
in EV charging.
Context
▪ Shell is seeking to embrace the global trend of sustainability. It
will be investing USD100 million annually in “nature-based
solutions” that protect natural ecosystems, such as rainforests
and grasslands, as part of its efforts to become carbon neutral by
2050.
Consequence
▪ Shell’s delving into the EV industry as a provider of charging
infrastructure reflects its long-term strategy to pivot away from a
business focus on being a major provider of fossil fuels.
Shell controlled a 2.5% global share in the market for forecourt ▪ The company is embracing the global sustainability drive and
retailing in 2020. This was down from 2.9% in 2015. pivoting its offering towards the fast-growing EV industry.
30
Case study: BP focuses on delivering rapid EV charging systems

Characteristic
▪ BP, a British oil and natural gas giant, has set its sights on
delivering rapid charging EV systems. In June 2021, the company
opened its first BP Pulse rapid charging hub in Park Lane, London
for vehicle fleets with 50kW chargers. A total of 10 chargers were
installed and a further 12 are planned in the coming months.
Context
▪ According to BP’s Richard Bartlett, London’s taxi and private hire
vehicle fleet will account for 80% of all public charging demand in
the city. Providing fast charging solutions will be vital in
preserving a ready supply of private hire and taxi services. BP has
partnered with the mobility giant Uber to have dedicated
chargers for its partner drivers.
Consequence
▪ Fast charging solutions will be important in delivering quick and
efficient turn-over rates for vehicle fleets providing mobility
solutions. This will be especially important for ride-hailing firms,
BP controlled a 2.0% global share in the market for forecourt retailing such as Uber, which have pledged to make their rides electric in
in 2020. This was down from 2.5% in 2015. the next decade.
31
Case study: Enel seeks ambitious target of 736,000 EV charging points by 2022
Characteristic
▪ Enel, an Italian energy retailer, is targeting the EV charging
industry. In 2017, it acquired eMotorwerks, which produces
charging solutions for its e-mobility division, Enel X.
▪ In Italy, around 90% of electric car charging is owned by Enel. By
2022, Enel is seeking to boast 736,000 charging points globally.
Context
▪ Enel is catering to the market for slow, fast and rapid chargers. Its
OpenCharge integrated solution can be used at home or at work,
and provides charging power of 3.7kW, 7.4kW and 22kW. In July
2021, Enel X formed a partnership with Volkswagen to enhance
EV uptake in Italy by investing in rapid charging units with a
power of 350kW.
Consequence
▪ Enel is actively investing in the EV market, in line with the current
trend to decarbonise the transport sector. The company is
seeking to cater to all charging speeds and thus penetrate the
In 2020, Enel SpA’s total electricity sales amounted to USD78.5 private and public EV charging industry.
billion. This was a 17% rise compared to 2015.
32
EV charging stations will require large electricity demand from sustainable sources
Electricity demand from renewables is expected to surge, as Global Electricity Output by Type, 2020
consumers make the switch from fossil fuels. Between 2015-2020,
electricity output grew by 10%, despite a dip in 2020, due to the Fossil Fuels
COVID-19 pandemic. According to the International Energy Agency,
by 2030, under the State Policies Scenario (which assumes existing Hydroelectric Generation
government policies on sustainable development) global electricity
demand from electric vehicles (including two and three wheelers) Nuclear Generation
will reach 550TWh – a sixfold rise compared to 2019 levels. Slow
charging (mainly AC) will represent the largest share of electricity Wind-Powered Generation
demand, as most charging will still occur privately (at home and
work), though fast chargers (mainly DC) will see increasing demand.
Solar Generation
EVs have been marketed as a solution to solving the climate crisis.
One of the challenges is ensuring that extra electricity demand Combustible Renewables and Waste
Generation
comes from renewable energy sources, such as solar and wind. In
2020, only 27% of electricity supply was derived from renewable Geothermal Generation
sources (hydroelectric, wind, solar, combustible renewables, and
waste and geothermal energy). In addition, with a significant
Other Sources
proportion of vehicle charging done at night, grid operators will
need to make the relevant investments in upgrading transmission 0 4,000 8,000 12,000 16,000 20,000
and distribution systems. kWh (billion)
Source: Euromonitor International from International Energy Association (IEA)
33
EV industry hampered by low profitability, but future prospects are high

The EV charging industry has not yet achieved high profitability. This New Passenger Car Registrations by Vehicle Type,
is because it is a relatively small market. In 2020, plug-in EVs (BEVs 2020-2040
and PHEVs) accounted for just 5.6% of total new passenger car 100%
registrations across 46 major markets. The market is also highly
90%
fragmented, with a large number of providers accounting for a small
proportion of the market. Finally, most charging is being done at 80%
private locations, such as at home or work, and this further reduces
the profitability of public charging. 70%
In the US, for instance, vehicle charging at home costs USD0.08-0.16 60%
per kWh, and diminishes the need for public charging. Companies
Share
50%
operating EV charging stations and selling electricity charge prices 3-
5 times the price of charging at home, such as Electrify 40%
America/Electrify Canada, which sells electricity at USD0.43 per
kWh, and USD0.31 cents per kWh for users who pay a USD4 30%
monthly membership fee. Nonetheless, the EV industry is growing.
20%
By 2030, new plug-in EV registrations will be on a par with non-EV
vehicles, and by 2040, plug-in EVs will account for 84% of all new 10%
passenger car registrations. This will provide opportunities for
companies investing in public charging. It will, however, be 0%
2015 2020 2025 2030 2035 2040
important for businesses to raise the necessary funds, as capital
costs will be high, especially for rapid DC charging facilities. Plug-in Electric Non-electric
34
Different chargers are suitable for different locations
Home charging Urban charging En-route charging
• Home charging units will • Urban charging units will usually • En-route charging units will
generally be slow chargers (up be fast chargers (7-22kW). typically be rapid chargers
to 6kW). • Fast charging adaptors include (>22kW).
• Slow charging adaptors include Type 2 (7-22kW AC), Type 1 • Rapid charging adaptors include
3-pin (3kW AC), Type 1 (3-6kW (7kW AC) and Commando (7- the CHAdeMO (50kW DC), CCS
AC), Type 2 (3-6kW AC) and 22kW AC). (50-350kW DC), Type 2 (43kW
Commando (3-6kW AC). • Fast chargers are most AC), Tesla Type 2 (150kW DC).
• Home charging units are most applicable at retail points where En-route charging will
appropriate for people who people go shopping predominantly occur on or near
have a garage or a place to park (supermarkets/shopping highways/motorways and will
their vehicle where it can be centres). Fast chargers have the usually require rapid chargers.
charged overnight. This is most ability to fully charge a vehicle • This is to ensure charge times
suitable for rural or suburban in a few hours, and consumers are reduced to a minimum and
locations, where space is at less can use this time to do their provide travellers with less
of a premium. shopping. disruption.
35
Wireless charging can solve charging adaptor challenges

One of the challenges of EV charging is the lack of a one-size-fits all
standard for connecters, meaning EVs can only be charged at certain
charge points. One of the solutions and opportunities to solving this
issue is wireless EV charging technology. This would help bypass the
current problem associated with charge point adapters and create a
universal system of EV charging.
In the UK city of Nottingham, a trial is underway of Wireless
Charging of Electric Taxis (WiCET), with a select number of electric
taxis being fitted with wireless charging technology produced by
Sprint Power, a firm that has engineered specially designed pads
attached to the ground that provide vehicle charging when a car is
parked directly above.
The Korean automobile maker Hyundai’s Genesis GV60 model, due
to be launched in 2022, will be the automaker’s first electric car
capable of being wirelessly charged. BMW has also been innovating
with wireless charging technologies, having first demonstrated this
in 2017 for a plug-in hybrid.
Wireless charging is, however, still a niche and nascent industry, and
will take time to develop. It will also require international standards
and protocols. It is likely that the market for wireless charging will
start gaining momentum from 2022. Source: unsplash.com
36
Case study: WiTricity working to develop wireless charging

Characteristic
▪ WiTricity is beginning to make a name for itself as a provider of
wireless EV charging solutions. At the end of 2020, it raised
USD34 million in an investment round. The funds will be used to
continue to develop wireless charging, expand the intellectual
property portfolio of the company and further commercialise
wireless charging technology.
Context
▪ In the US, the BMW 530e plug-in hybrid was the first vehicle
produced to include a wireless charging pad using WiTricity
technology. WiTricity has also been working with Hyundai to
develop wireless charging. The Hyundai Genesis GV60 is expected
to be launched in 2022 as part of a pilot programme, with
WiTricity supplying wireless charging pads.
Consequence
▪ Wireless charging is still in its infancy; however, the technology is
slowly being pushed forward. WiTricity is one of the leading
companies supplying such technologies, and is likely to contribute
In February 2021, WiTricity raised a further USD18 million in funding to the speeding up of EV deployment.
for the development of wireless EV charging.
37
Developing a successful strategy for companies in the EV charging business is vital
Identify EV charging
Find cross-selling Tap into the
types for best Develop brand loyalty
opportunities sustainability market
efficiency
• When users stop to • EV chargers come in • First mover advantage • Sustainability is a hot
charge their EV there is different shapes and can often contribute to topic at the moment.
an opportunity to forms. Companies developing brand According to Euromonitor
leverage the cross-sale of wishing to tap into the awareness and building International’s 2021
products and services. private charging industry customer loyalty. With EV Lifestyle Survey, two
For example, EV chargers are better off investing in charging still being a thirds of respondents
are being placed at slow and fast chargers. small industry, the agree or strongly agree
grocery and other retail They are suited for growth potential is that climate change is a
stores, allowing people to private locations such as immense. Over the six concern. Retailers, fuel
charge their vehicles at homes, hotels and year period to 2021, EV stations, hotels and
while doing their shopping centres. On the charging stations restaurants can tap into
shopping. This can also other hand, DC rapid numbers grew eightfold. the EV charging market to
apply to restaurants, chargers are more signal their intent regard
hotels and entertainment appropriate on highways, climate change and
venues. where rest stops are attract eco-conscious
shorter. consumers.
EV CHARGING INDUSTRY
Summing up: Opportunities and challenges of the EV charging industry
Opportunities Challenges
• Tap into a growing market • No universal charging
• Provision of subsidies and infrastructure
incentives from governments • High cost of charging infrastructure
• Take advantage of new retailing (especially rapid chargers)
models • Profitability issues due to low EV
• Large opportunities in providing adoption
public charging facilities • Ensure grid operators manage
• Diversify away from fossil fuel- electricity demand
based industries • Much of the global electricity
• Prospects for wireless charging supply is coming from fossil fuels
EV Battery Industry
EV BATTERY INDUSTRY 40
40
Asian countries continue to dominate battery production

Global battery production value is forecast to nearly double over
the 2020-2030 period, to reach USD454 billion in the latter year.
The ongoing shift to electric vehicles is set to support demand for
batteries and stimulate new investment in production capacity
expansion.
Asia Pacific is forecast to remain the dominant region in terms of
battery production. China is forecast to account for almost 55% of
global battery production value in 2030, backed by its large
domestic market, access to resources and an already developed
battery production industry.
However, European and US car manufacturers aim to reduce the
reliance on Asian suppliers and plan investment in battery
production and supporting industries. Poland, Spain and Germany
are forecast to host some of the fastest growing battery industries
globally, as car manufacturers and governments rush to develop
domestic supply.
In terms of battery types, lithium-ion and nickel batteries are
forecast to dominate. Lithium-ion batteries continue to dominate
the electric vehicle market thanks to the best performance-price
ratio, while nickel batteries are widely used in hybrid vehicles.
41
Price parity with internal combustion engine vehicles to be reached by 2025

Battery costs remain an important aspect of the production of Price of Lithium-ion Battery Cells per kWh,
electric vehicles. Car manufacturers are racing to reduce prices of 2000-2018
batteries before the mass launch of electric vehicles. For example, 2,500
UBS estimates that battery packs add around USD4,000 to
production costs compared with an internal combustion engine car.
Prices of lithium-ion batteries have seen a steady decline over the 2,000
last two decades, from USD2,200 per kWh in 2000 to USD181 per
kWh in 2018. However, after decades of declines being driven by
greater economies of scale and technological improvements, new 1,500
gains are more difficult to make. It is predicted that battery prices
USD
will decline at a slower rate and reach USD100 per kWh by 2025.
This price point is expected to make electric vehicles evenly priced 1,000
with internal combustion engine cars.
Rising commodity prices, however, remain a challenge. Materials
such as lithium, cobalt and nickel account for 30-45% of the total 500
battery price. As demand for metals continues to outstrip supply,
rising prices could halt battery price declines and dent the profits of
car manufacturers. To cope with this challenge, car companies and 0
battery manufacturers are already trying to secure long-term 2000 2005 2010 2015 2018
contracts with mining companies to avoid material shortages and Source: Micah S Ziegler, Jessika E Trancik “Re-examining rates of lithium-ion battery
price fluctuations. technology improvement and cost decline”
42
As industry matures, manufacturers eye new technologies to reduce prices
Improved efficiency of existing

New materials
batteries
Solid state batteries
As prices of the metals used in
Battery manufacturers are
batteries increase,
Manufacturers have long been experimenting with improved
manufacturers are
investing in solid state batteries, battery cooling systems and
experimenting with new
as these would help to increase layouts that help improve
materials, such as sodium-ion.
energy density and electric efficiency. This is anticipated to
Switching to cheaper input
vehicle driving range. help reduce prices of electric
materials would make electric
vehicles and extend driving
vehicles more affordable.
range.
43
Case study: Tesla promises “tabless” battery design

Characteristic
▪ Tesla Inc introduced a “tabless” battery design in 2020.
▪ The new battery has fewer parts and a shorter electrical path.
▪ The new battery design promises a simpler manufacturing
process and improved efficiency of the battery cell.
Context
▪ As the battery industry matures, manufacturers are aiming to
improve existing product designs.
▪ New battery designs increase the vehicle driving range.
▪ Tabless batteries can also help to reduce environmental impact,
as they require less metal.
Consequence
▪ The mass production of tabless batteries poses challenges, as it
requires new investment and increases production safety risks.
▪ However, if successful tabless battery design would further
Tesla suggests that new battery designs will increase vehicle range by solidify Tesla’s leadership in electric vehicle industry.
16% and simplify the production process.
44
Case study: Volkswagen and QuantumScape rush to develop solid-state battery

Characteristic
▪ Volkswagen-backed start-up QuantumScape announced a
breakthrough in solid-state battery technology in 2020.
▪ The development of solid state batteries would make electric
vehicles more competitive.
Context
▪ Car manufacturers are facing tougher emission targets and need
to accelerate production of electric vehicles.
▪ Solid-state batteries would be less expensive to build and faster
to charge, making them more attractive to consumers.
Consequence
▪ Car companies are racing to start mass production of solid-state
batteries, as this could be a game changer.
▪ If Volkswagen succeeds, it could leapfrog Tesla and become the
9% of households globally owned an electric vehicle in 2021. leading manufacturer of electric vehicle technologies.
45
Case study: CATL develops sodium-ion battery

Characteristic
▪ Contemporary Amperex Technology (CATL) is investigating the
possibility of using plentiful and cheap sodium ions in battery
production.
▪ The new technology could revolutionise the battery production
process.
Context
▪ Investment is coming as battery and car manufacturers face
shortages and rising prices of metals.
▪ Sodium-ion batteries could help to reduce costs.
▪ New batteries would offer convenience to electric vehicle buyers
by reducing charging time.
Consequence
▪ The new technology remains in the early development stage and
is yet to reach mass-production.
▪ However, if successful, this could change the battery industry.
Metal products account for around 40% of total battery costs. ▪ Other battery manufacturers are likely to follow CATL and
increase the usage of cheaper input materials.
46
Europe to offer new growth opportunities for battery producers and suppliers
Europe accounted for 21% of global car production volume Top 10 Fastest Growing European Countries by Battery
in 2020, making it one of the largest car-producing regions Production, 2020-2030
globally. However, the region accounted for just 9% of 3,500 140%
global battery production value, indicating its significant
dependence on imported components for electric vehicles. 3,000 120%
As batteries remain the single most expensive component

2,500 100%
in electric vehicles, the high reliance on imported batteries
puts European car manufacturers at a disadvantage. In the
USD million
2,000 80%
% growth
long term, European car manufacturers risk losing their
competitive position to foreign rivals. Moreover, not having
1,500 60%
a domestic battery industry increases supply chain risks,
and could be a missed opportunity for European policy
1,000 40%
makers and battery component suppliers to locate a higher
share of value added in the region.
500 20%
To improve the situation, both governments and car
manufacturers aim to boost battery production in Europe, 0 0%
and plan large-scale investments in the sector and
supporting industries. Germany, Poland, Italy and the UK
are expected to lead battery production growth in the
upcoming decade, thanks to the new production facilities 2020-2030 absolute growth, USD million 2020-2030 % growth
which are planned. Source: Euromonitor International from national statistics
47
European Battery Alliance aims to catch up with Asian battery manufacturers
Investment in battery production and

In 2017, the European Commission
Besides investment in the battery a higher share of value added created
launched the European Battery
supply chain, European manufacturers within Europe is anticipated to create
Alliance (EBA) initiative. The purpose is
have also accelerated battery around 800,000 new qualified jobs by
to strengthen European battery
production. As of 2021, 38 battery 2025.
production and the supply chain, and
gigafactory projects were under At the same time, the shift towards
capture a larger share of global battery
construction within the EU and the electric vehicles will create structural
production by 2025.
UK. Among the most notable are changes in the labour market,
In 2021, EUR2.9 billion support for
Northvolt in Sweden, LG Poland in especially within the automotive
battery R&D projects was approved by
Wroclaw and CATL in Germany. industry. Countries will need to
12 member states. Since 2018, large
However, estimates suggest that address the widening skills gap and
industrial players, including Siemens,
Europe might still need 80 battery retrain automotive workers. In 2021,
BASF, Solvay and Unicore, have
gigafactories by 2040 to meet France and Spain will become the first
announced investment in battery
demand. countries to test an EBA worker
components.
reskilling programme.
EUR2.9 billion 38 gigafactories 800,000 new jobs

in state aid for battery R&D projects under construction in battery industry by 2025
48
OEM manufacturers aim for in-house battery production

OEM car manufacturers are diversifying their supply chains and Investments in electric vehicles by car manufacturer:
ramping up in-house production of lithium-ion batteries. Car
batteries can account for 30-50% of total electric vehicle costs, thus Volkswagen
outsourcing the battery supply to external suppliers would dilute USD71 billion over 2018-2025 in electric vehicle and battery
the value created by automotive companies. In order to maintain technologies (excluding actual costs of battery factory building)
their central position in the automotive supply chain, OEM

manufacturers aim to produce batteries and components in-house.
Besides the cost reduction, the development of in-house battery Stellantis
production can help to reduce component sourcing risk. By using in- USD38 billion by 2025 for electric vehicle technologies and
battery production
house batteries, car companies are less exposed to supply chain
disruptions and transportation cost increases, and are better
shielded from competition in the battery market from consumer
electronics industries that also use lithium-ion batteries. Ford
USD30 billion by 2025 for electric vehicle and battery
However, OEM’s plans to develop in-house battery production have technologies
so far proved challenging. Besides shortages of raw materials,
companies are struggling to find qualified engineers in the fields of
chemistry and electronics – typically fields which are outside the
automotive industry’s scope. Greater collaboration with chemical General Motors
suppliers, training programmes and long-term contracts with mining USD35 billion by 2025 for electric vehicle, autonomous vehicle
technologies and battery production
companies are anticipated to alleviate these issues, but this will take
time. Mass production of in-house batteries is expected to start only
in 2025.
49
Battery production to support metals, chemicals and hi-tech good industries

The expansion of electric vehicle battery production will support
other B2B industries across the supply chain. Growing battery
production volumes will directly benefit suppliers of metal products,
such as lithium, cobalt and nickel. Metals remains the biggest B2B
cost category in battery production, accounting for 40% of total
expenditure in 2020.
Battery production is also expected to provide new growth
opportunities for suppliers of hi-tech goods and chemical products,
as these industries play a crucial role in the battery supply chain.
Research from Carnegie Mellon University suggests that materials
represent around 50% of total battery costs. Out of this, almost 34%
of material costs is attributable to cathodes, anodes and
electrolytes. Expanding production of batteries could benefit Asian
hi-tech goods suppliers, as well as European chemical products
manufacturers.
Growing battery production is expected to positively impact the
business services industry. As of 2020, the battery industry globally
spent around USD4.4 billion on business services, largely driven by
spending on R&D, engineering consulting and similar services. As
the race to reduce battery prices continues, and talent shortages
increase, spending on business services is expected to rise. Note: Aggregated data of nine largest economies
50
Securing stable supply of metals remains an issue

Lithium is a critical component for improving the driving range of Lithium Carbonate Price, 2018-2021
electric vehicles; however, securing a stable supply of metals remains 25
an issue as the production of electric vehicles accelerates. Demand
for electric vehicles increased faster than anticipated before the
COVID-19 pandemic, while at the same time the supply of lithium and 20
other metals remains tightened.
Metal price fluctuations make it more difficult for car manufacturers
to plan production and secure stable supplies of critical components. 15
For example, in the first half of 2021, the price of lithium more than
USD per kg
doubled, making it more difficult to source the metal and eroding
some of the profit margins of car manufacturers. Lithium price rises
sparked new interest from mining companies, and supply is expected 10
to grow in the medium term. However, given the rapid growth in
electric vehicle production, the supply deficit is predicted to widen
significantly in 2027, unless new deposits are discovered. 5
Securing long-term upstream supply is one of the ways in which car
manufacturers could cope with metal price fluctuations. For example,
Tesla made a deal with BHP to secure nickel supply, while BMW and 0
GM have signed lithium sourcing agreement with mining companies.
Nov-18
Nov-19
Nov-20
Jul-18
Jul-19
Jul-20
Jul-21
May-18
May-19
May-20
Mar-21
May-21
Sep-18
Mar-19
Sep-19
Mar-20
Sep-20
Jan-19
Jan-20
Jan-21
Other battery manufacturers are also aiming to secure long-term
metal supply contracts.
Source: Fastmarkets.com, London Metal Exchange
51
Concerns over ethical mining and sustainability increase

Battery and car manufacturers are facing concerns over the ethics of Production of Lithium by Country, 2020
practices in lithium and other metal mines. In the past years, the
Australia
industry has faced concerns regarding the supply of cobalt, which is
sourced in the Democratic Republic of Congo, where there have Chile
been charges of human right violations in mines.
China
Thanks to advancements in chemistry, cobalt’s share has shrunk;
however, lithium would be much harder to replace. As demand for
Zimbabwe
lithium continues to grow and the deficit widens, it will be more
difficult to ensure ethical mining practices. The mining industry also Portugal
faces environmental challenges when mining lithium, in particular
high water consumption and the treatment of mining waste. Argentina
Manufacturers of car batteries are already addressing these issues Brazil

and aim to establish more sustainable mining practices. For
example, Volkswagen, Daimler, BASF and smartphone manufacturer US
Fairphone established a responsible lithium partnership in 2021 to
protect the mining area in Chile, one of the largest global suppliers Bolivia
of lithium. BMW also signed a USD335 million sustainable supply
Nigeria
deal with Livent, which mines lithium in Argentina. New
technologies could also help to better trace the origins of metals. 0 100 200 300 400 500 600 700
For example, in 2020, Volvo applied blockchain technology to track ‘000 tonnes
the origins of cobalt and ensure ethical mining practices. Source: US Geological Survey (USGS), British Geological Survey (BGS)
52
Case study: Volvo to use blockchain technology to track metal origins

Characteristic
▪ Deposits of rare earth metals are typically highly concentrated in
a small number of countries, making it more difficult to secure
supply of ethically mined materials.
▪ As a solution, Volvo is adopting blockchain technology to help
trace the origins of the raw materials.
Context
▪ Car manufacturers are facing rising demands to reduce the
environmental impact of battery production.
▪ Growing environmental concerns among consumers are also
encouraging companies to use ethically mined materials in
electric vehicles.
Consequence
▪ Volvo is a pioneer in implementing blockchain technology, and
other manufacturers are expected to follow as environmental
pressures increase.
31% of consumers globally make purchasing decisions based on a ▪ The use of new technologies would help to improve mining in
company’s social and political beliefs. developing countries and reduce negative environmental impact.
53
Battery production localisation is needed to reduce environmental impact

Electric vehicles are considered to be more environmentally Carbon Emissions to Manufacture Electric Vehicle*
friendly, as they are responsible for less CO2 emissions than internal by Category
combustion engine cars, even when electric vehicles are charged
using electricity generated using fossil fuels. However, the batteries Battery cells
require a lot of energy and resources to build, significantly
increasing the environmental impact of electric vehicles. Body steel
Battery and car manufacturers are seeking to reduce emissions
during the battery production process. One of the ways to minimise Production and logistics
environmental impact is greater use of renewable energy. For
example, battery manufacturer Northvolt raised almost USD2.8 Battery housing
billion in 2021 to expand production in Sweden, where renewable
hydro-electric power is plentiful. However, this solution might not
Electronics
work in all cases, as access to affordable renewable energy differs
by country.
Tyres, wheels
Manufacturers will also have to find ways to increase production
localisation to reduce environmental impact. For example,
Volkswagen estimates that production and logistics is the third Other
largest source of pollution in electric vehicle manufacturing.

0 1 2 3 4 5
Greener supply chains and more environmentally-friendly
Tonnes of CO2
production of steel, electronics and other car component could help Source: Volkswagen AG, Wall Street Journal
to reduce the environmental impact of electric vehicles. Note: * Emissions calculated for Volkswagen ID3 model
54
Battery recycling could create new value for economies

As of 2020, around 7 million electric vehicles were registered Countries with the Largest Recycling Industries, 2030
globally, with the number forecast to reach 49 million in 2030. Cars
China
are typically used for 10-15 years until they approach the end of
their life cycle and are recycled. The growing number of electric US
vehicles will put significant pressure on the recycling industry, as the
need to recycle used batteries will rapidly accelerate. Germany
Developing battery recycling systems will require investment in new Spain

technologies and operating capacity expansions. Currently, only
Russia
around 5% of used electric vehicle batteries are recycled, as a lack
of technologies, differences in battery design and the generally high Japan
risk of fire when recycling lithium batteries hinders the process.
Turkey
Worker safety remains an issue to be resolved. The most effective
way to extract resources from the battery is by hand; however, UK
there are significant worker safety risks in the process. Therefore,
France
car manufacturers and recyclers are experimenting with automated
solutions that would help to reduce safety risks. Australia
While there are substantial challenges, the potential value from 0 200,000 400,000 600,000 800,000 1,000,000
battery recycling is high. Car manufacturers see recycling as one of
USD million
the ways to secure more stable supply of lithium, nickel and cobalt.
Recycling of Non-metal Waste Recycling of Metal Waste
Governments are also interested, as it would help to create new
value for the economy and offer domestic supply of metals.
55
Case study: Volkswagen battery recycling plant

Characteristic
▪ Growth in the number of electric vehicles will require the
expansion of battery recycling capacity and the creation of new
solutions.
▪ Volkswagen is experimenting with battery recycling and is
implementing a pilot project to recycle 3,600 batteries annually.
Context
▪ Growing material shortages provide additional incentives for
companies to invest. Recycling of batteries can help to improve
supplies of nickel, cobalt, lithium and other metals.
▪ Changing consumer lifestyles towards reusing used items is
anticipated to support battery recycling.
Consequence
▪ Car manufacturers are aiming to develop new recycling
technologies that would enable mass-reuse of used car batteries.
▪ Battery recycling is expected to develop into a lucrative industry
43% of consumers globally prefer to repair broken items rather than and help companies to create new revenue streams.
replacing them.
56
Case study: Volkswagen changes selling model to secure old battery supply
Characteristic
▪ Car manufacturers aim to secure supply of used batteries.
▪ Volkswagen is experimenting with its sales model and aims to
release electric vehicle to second or third owners through its own
financial services branch.
Context
▪ The new leasing scheme would help Volkswagen to secure a
stable supply of used batteries that can be recycled for metals or
used in energy storage projects.
▪ Stable demand for used batteries could also benefit consumers
by increasing residual values of used electric vehicles.
Consequence
▪ By offering leasing services on used cars, Volkswagen would
change the existing sales model. This would also help to create
new revenue streams through financial services division.
80% of Volkswagen’s electric vehicles sold in the USA are leased ▪ Other manufacturers are also experimenting with new sales
models, aiming to skip dealerships and sell vehicles directly to
consumers.
57
Summing up: Opportunities and challenges for the battery industry
Developing a robust and flexible supply chain of electric vehicle batteries will increasingly be a competitive advantage for the car companies
racing to electrify their model ranges. European and North American companies are predicted to intensify battery production efforts, as
they will feel increasing pressure from Asia. This will include securing upstream supplies of metals such as lithium, nickel and cobalt, and
sourcing components such as battery cathodes and electrolytes.
In order to secure stable supplies, car companies are expected to establish long-term agreements with mining companies. The growing
need to reduce the environmental impact of electric vehicles will also require supply chain localisation, the construction of regional
gigafactories and investment in battery recycling.
Final Remarks
FINAL REMARKS 59
59
SWOT: What it means for business
Make transition to EVs

Take advantage of Identify target market for Develop partnerships with
with a localised battery
financial incentives charging clean energy suppliers
supply
• National, state and local • Companies need to • With continued pressure • With sustainability being
governments are understand what sort of to reduce greenhouse a hot topic, EV charging
offering various financial charging segment they gas emissions, companies should
incentives, such as are focused on: automakers are making partner with suppliers
subsidies and tax home/workplace a strategic decision to generating electricity
rebates, to support the charging, charging at transition to EV from 100% renewable
development of EV retail points or on production. This will sources. This will appeal
charging infrastructure highways. This will require them to develop to climate-conscious
and/or EV purchases. determine the charging a localised EV battery consumers who are
This can be a good way speeds and charging supply, as this will increasingly making
to minimise the high types needed. Demand mitigate supply chain purchasing decisions
initial cost of expensive for public charging will risks. Automakers should based on climate
EV charging hardware rise as more people also explore battery friendliness as opposed
and EVs themselves. without private charging recycling, as it could to price.
points purchase EVs. help in providing a stable
supply of essential raw
materials.
FINAL REMARKS 60
60
Conclusion
Electric vehicles is a fast growing and lucrative industry. It is being
driven primarily by climate change worries, as more governments
across the world shut the door to fossil fuel power. By 2040, across
46 major markets, 84% of new passenger car registrations will be
plug-in electric (either BEV or PHEV). This is up from 5.6% in 2020.
The immense growth forecast for the industry is pushing numerous
major automakers to realign their business strategies towards the
provision of EV vehicles and away from cars powered by fossil fuels.
At the same time, new opportunities are emerging in developing EV
charging infrastructure. Retailers, oil and gas, and energy firms, as
well as other industry players, are rolling out charging stations
through partnerships or strategic acquisitions. Competition is
expected to intensify as more companies enter the market,
benefiting end-users.
Similarly, the production of EV batteries is expected to nearly
double over the period 2020-2030, to reach USD454 billion in the
latter year. China is forecast to remain the dominant supplier of
batteries in 2030, although European countries are expected to
provide significant growth opportunities for manufacturers and
suppliers of car batteries.
ELECTRIC MOBILITY: OPPORTUNITIES AND CHALLENGES IN THE CLEAN FUEL INDUSTRY
For further insight please contact
Justinas Liuima
Senior Consultant, Industrial
Justinas.Liuima@Euromonitor.com
• https://www.linkedin.com/in/justinas-liuima/
• @JLiuima
Fransua Vytautas Razvadauskas

Consultant, Cities
fransua.razvadauskas@Euromonitor.com
• https://www.linkedin.com/in/fransua-vytautas-razvadauskas/
• @mobility_cities
Experience more
This research from Euromonitor International Company To find out more about Euromonitor International's complete range of
is part of a global strategic intelligence system Strategic analysis of the world’s business intelligence on industries, countries and consumers, please
that offers a complete picture of the largest companies and their activities visit www.euromonitor.com or contact your local Euromonitor
International office:
commercial environment. Also available derived from a global country by
from Euromonitor International: country research program. Bangalore +91 80 4904 0500 São Paulo +55 11 2970 2150
Cape Town +27 21 524 3000 Seoul 82 (2) 6138 436
Industry Economic Chicago +1 (312) 922 1115 Shanghai +86 21 603 21088
Industry reports are updated annually and The world's most comprehensive Dubai +971 4 372 4363 Singapore +65 6429 0590
provide internationally comparable statistics market research and in-depth data Dusseldorf +49 (0)211 890944 0 Sydney +61 2 9581 9200
on a wide range of consumer goods, services and analysis on national economic Hong Kong +852 3796 3604 Tokyo +81 3 3436 2100
and industrial markets. performance and market sizes. London +44 (0)207 251 8024 Vilnius +370 5 243 1577
Santiago +56 2 2 9157200
Country Consumer
Internationally cross-comparable data The world's most comprehensive
covers more than 210 national markets, market research and in-depth data
with continuous updates providing in-depth and analysis on consumer
strategic analysis of the competitive market behaviour.
landscape and current market trends
Euromonitor International network and coverage
15 OFFICES
To find out more about Euromonitor
International's complete range of
business intelligence on industries,
countries and consumers, please visit
www.euromonitor.com or contact your
local Euromonitor International office:
Bangalore +91 80 4904 0500
Cape Town +27 21 524 3000
Chicago +1 (312) 922 1115
Dubai +971 4 372 4363
Dusseldorf +49 (0)211 890944 0
Hong Kong +852 3796 3604
London +44 (0)207 251 8024
Santiago +56 2 2 9157200
São Paulo +55 11 2970 2150
Seoul 82 (2) 6138 436
Shanghai +86 21 603 21088
Singapore +65 6429 0590
Sydney +61 2 9581 9200
Tokyo +81 3 3436 2100
100 COUNTRIES 210 COUNTRIES
Vilnius +370 5 243 1577
in-depth analysis on AND TERRITORIES
consumer goods and demographic, macro- and socio-economic
services industries data on consumer and economies

Electric Mobility Opportunities and Challenges in The Clean Fuel Industry

Uploaded by

Copyright:

Available Formats

You might also like

Electric Mobility Opportunities and Challenges in The Clean Fuel Industry

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Electric Mobility Opportunities and Challenges in The Clean Fuel Industry

Uploaded by

Copyright:

Available Formats

Electric Mobility: Opportunities and Challenges in

the Clean Fuel Industry

© Euromonitor International 2021. All rights reserved.

This PowerPoint presentation includes proprietary information

For usage requests and permission, please contact us

The data included in this report is accurate according to

Key findings (1)

Key findings (2)

Asia and Europe to drive electric vehicle market growth

in Europe. Source: Euromonitor International from national statistics

Emerging markets to witness fastest electric vehicle market growth

Europe is forecast to have the largest market share of electric vehicles

75% of the new car market in all three countries in 2040. US

Share of EV registrations from passenger car registrations

Automakers are shifting their focus towards EV production

reducing their viability and appeal in the market. In 2017, France

Case study: GM commits to USD27 billion investment in E-mobility

Case study: Stellantis plans USD35.5 billion investment in electrification

China is the global leader in EV charging

Source: Euromonitor International from trade sources, national statistics

Opportunities can be found in markets with too few charging stations

greater demand for public charging infrastructure, especially fast 0 0%

EV charging is a big business that caters to a broad range of industry specialists

EV charging industry is fostering new strategic partnerships and M&A

infrastructure investors, energy firms and other industry players. 800

Case study: Shell to build half a million EV charging points by 2025

Case study: BP focuses on delivering rapid EV charging systems

EV industry hampered by low profitability, but future prospects are high

Different chargers are suitable for different locations

Home charging Urban charging En-route charging

Wireless charging can solve charging adaptor challenges

Case study: WiTricity working to develop wireless charging

Developing a successful strategy for companies in the EV charging business is vital

Summing up: Opportunities and challenges of the EV charging industry

Asian countries continue to dominate battery production

Price parity with internal combustion engine vehicles to be reached by 2025

As industry matures, manufacturers eye new technologies to reduce prices

Improved efficiency of existing

Case study: Tesla promises “tabless” battery design

Case study: Volkswagen and QuantumScape rush to develop solid-state battery

Case study: CATL develops sodium-ion battery

As batteries remain the single most expensive component

European Battery Alliance aims to catch up with Asian battery manufacturers

Investment in battery production and

EUR2.9 billion 38 gigafactories 800,000 new jobs

OEM manufacturers aim for in-house battery production

their central position in the automotive supply chain, OEM

Battery production to support metals, chemicals and hi-tech good industries

Securing stable supply of metals remains an issue

Concerns over ethical mining and sustainability increase

Manufacturers of car batteries are already addressing these issues Brazil

Case study: Volvo to use blockchain technology to track metal origins

Battery production localisation is needed to reduce environmental impact

largest source of pollution in electric vehicle manufacturing.

Battery recycling could create new value for economies

Developing battery recycling systems will require investment in new Spain

Case study: Volkswagen battery recycling plant

Summing up: Opportunities and challenges for the battery industry