- Autowist
- Posts
- Charging Network Moat, EV Slowdown, Chinese Battery Geopolitics..
Charging Network Moat, EV Slowdown, Chinese Battery Geopolitics..
Insight: Charging network is a moat
BP has purchased $100 million worth of Supercharger hardware from Tesla for its BP Pulse EV charging business. This move is part of BP Pulse's plan to invest $1 billion by 2030, including $500 million in the next few years, to build a nationwide charging network. Tesla's equipment can charge up to 250kW and supports various connectors. BP Pulse will start installing these chargers at various locations under BP's brands and third-party sites like Hertz. The chargers will use Omega software, different from Tesla's, supporting a Plug-and-Charge protocol for ease of use.
Tesla has a wide monopoly regarding charging standards. The NACS charging standard is being adopted by more and more OEMs. Making it an ideal choice for energy providers to partner with as they can address a very large market. Tesla has positioned itself well that it earns on both sides of the equation. It "earns" from allowing OEMs to use their NACS charging standard and in turn allowing other brand cars to be charged using Tesla's Supercharger Network. In addition to that, they also earn by such mass deals in commissioning supercharger networks with partners around the world. Win-win, but both wins are for Tesla.
Tesla’s first big Supercharger deal is a $100 million sale to BP (Link)
Trend: EV Slowdown
The automotive industry is observing a slower-than-expected adoption of electric vehicles (EVs), prompting companies like Ford and Volkswagen to delay their battery production plans. Ford has postponed the production at one of its Kentucky battery plants, and its Model e business has reported substantial losses. Similarly, Volkswagen has pushed back its fourth battery plant in Eastern Europe due to sluggish EV sales. General Motors has also scaled back its EV production goals. Amidst this trend, Panasonic is reducing its Japanese production of EV batteries due to decreased consumer demand. Despite these setbacks, the long-term outlook for EV adoption remains optimistic, with GlobalData forecasting significant growth by 2028.
Ford Delays Some EV Battery Production, Cites Lower-Than-Expected Demand (Link)Volkswagen delays fourth EV battery plant over ‘sluggish’ sales (Link)Automakers Are Pumping The Brakes On The EV Transition (Link)Panasonic reduces production of electric vehicle batteries (Link)
Insight: Chinese Battery companies and geopolitics
The Biden administration aims for half of all new U.S. cars to be electric by 2030, with the EU also pushing for zero-emission vehicles. However, Chinese companies, with close ties to the CCP, control a significant portion of the EV battery market. This poses risks of dependency and cyber threats, similar to concerns raised with Huawei's expansion. Chinese companies' integration into global supply chains and infrastructure raises alarms about security and the potential for espionage and sabotage, urging Western policymakers to assess and regulate these vulnerabilities more strictly.
The situation with Chinese EV battery dominance is related to past concerns with Huawei in that both involve fears of the Chinese government using its influence over Chinese corporations to potentially engage in espionage, intellectual property theft, or exert control over critical foreign infrastructure. With Huawei, the concern was over telecommunications networks and potential spying or sabotage. In the case of EV batteries, there's a fear that dependence on Chinese technology and supply chains could expose Western electric grids and other key technological areas to similar risks.
Are Chinese Battery Companies the Next Huawei? (Link)
Trend: Car --> Smartphone
Lucid Motors is hinting at the possibility of integrating native support for Apple and Amazon Music into its vehicles, as suggested by a recent job posting for a Senior Product Manager to oversee media app partnerships. This could lead to direct in-car access to these music services, similar to Tesla's approach. Currently, Lucid's Air sedan includes Apple CarPlay, but the potential new features would offer additional built-in music streaming options. The company's vehicle lineup ranges from the Air Pure RWD starting at $78,900 to the high-end Air Sapphire priced at $249,000, with the Gravity SUV expected to follow suit with similar powertrains.
Lucid To Add Native Apple And Amazon Music Support In Its Cars (Link)
Tech: Fast Charging + Vehicle-to-grid
Polestar is collaborating with StoreDot to introduce '100-in-5' extreme fast charging (XFC) technology that promises to deliver 100 miles of EV range in just five minutes. This technology is compatible with existing battery designs, negating the need for a design overhaul. A full-scale demonstration of this technology in a Polestar 5 prototype is planned for 2024. StoreDot's silicon-dominant battery chemistry, critical for high-speed EV charging, is part of a strategic roadmap aiming to further reduce charging times in the coming years. This roadmap reiterates the anticipated milestones over the next decade with ‘100-in-5’ targeted for 2024, ‘100-in-3’ for 2028, and ‘100-in-2’ for 2032.
The company is also advancing its technology with a 'Virtual Power Plant' (V2G) project in Sweden, exploring business models that leverage the ability of electric cars to feed energy back to the grid. This V2G technology enables energy management during peak demand and could allow car owners to profit by selling excess electricity back to the power supplier. The Polestar 3 will be integral to this project, highlighting the potential of V2G to benefit communities as well as individual customers.
Polestar 5 – Polestar’s Porsche Taycan rival – REVEALED promising 100 miles of charge in five minutes (Link)Polestar planning to test ‘extreme’ fast charging testing from next year (Link)Polestar and StoreDot to showcase extreme fast charging technology in Polestar 5 prototype (Link)
Insight: Automotive wants to manufacture custom chips
TSMC, Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors have announced a joint investment in the European Semiconductor Manufacturing Company (ESMC) in Dresden, Germany. This collaboration aims to establish a 300mm semiconductor fabrication facility, focusing on the automotive and industrial sectors. The fab, expected to start construction in 2024 and production by 2027, will create approximately 2,000 jobs and have a monthly capacity of 40,000 wafers. The venture, with substantial backing from the European Union and German government, will be 70% owned by TSMC and 10% each by Bosch, Infineon, and NXP.
Germany approves stakes by Bosch, Infineon and NXP in TSMC chip plant (Link)
Trend: ChatGPT becomes a native app
DS Automobiles is integrating ChatGPT into its car models, enhancing the infotainment systems with AI capabilities. This integration will provide a digital travel assistant, offering interactive features like suggesting places to visit and creating quizzes or stories. The integration is part of Stellantis' strategic focus and will be available through an over-the-air update. The move towards software-defined vehicles (SDVs) is significant in the automotive industry, allowing continuous updates and upgrades, similar to smartphones. Generative AI, a key component in this transformation, is set to revolutionize vehicle design and development, improving performance and enabling advanced features like autonomous driving simulation and testing.