Who is solidifying the future of EV Batteries?

Everyone in the EV arena knows that the most important part of an electric vehicle is its battery. As the most expensive component, which can get to up to 50% of the vehicle’s production cost as well as the biggest and the heaviest, the characteristics of the battery determine the power, range and efficiency of the vehicle. As we discussed in one of our latest reports, the basic Lithium-Ion batteries create some pressing issues through their life cycle, from the environmental impact of their production, through the impact of their weight on the vehicle, to their disposal at the end of their life. 

While LFP batteries, which contain lithium, iron, and phosphate ions, replacing metallic materials like cobalt, nickel, or manganese, mitigate some of the battery's problems and capturing significant market share (about 30%), the industry's eyes are set on a more elusive prize: solid-state batteries. These cutting-edge power reserves swap liquid for solid electrolytes, offering a range of benefits including longer ranges on a single charge, quicker charging times, extended lifespan, and a safer, non-flammable composition. 

The market’s excitement surrounding solid-state batteries is undeniable, and rightfully so.

The latest development from the last month, which can become a transformative move in the EV industry, is the creation of an alliance of the biggest Chinese battery manufacturers such as CATL, BYD and CALB that will work together to develop a solid state battery. Considering these three companies alone dominate over half the EV battery market, the implications of their collaboration, which will be led by the Chinese government, could be game-changing.

Of course, the alliance of the Chinese giants does not form in a vacuum when leading OEMs are working for the development and implementation of solid state batteries. Towards the end of 2023, Toyota announced that it intends to develop a solid state battery that can reach 1,200 Km on a single charge by 2027; Last month, Volkswagen announced that its Solid state battery partner, QuantumScape showed in a test its battery can reach 95% capacity over 1000 charging cycles and a total mileage of half a million kilometers (there are indications that VW is exploring partnerships with other solid-state battery developers due to delays.). We can also note other leading OEMs such as Nissan, BMW, Honda and Stellantis that develop and partner tech companies with the goal of launching EVs with this type of batteries in the following years.

Yet, it's clear that mass producing these batteries is no small feat. The technology is still maturing, and the costs are high. But the wheels are in motion, with various stakeholders placing their bets on solid-state batteries. It's an evolving field, ripe with potential, and it'll be fascinating to see how it unfolds—who will lead the charge and when this breakthrough technology will hit the mainstream.

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Which Tech Giant is Planning to Dominate Automotive Tech?

The CES conference that took place a month ago in Las Vegas was a great opportunity for Google to reveal its new features to drivers, like it does once every few months. This time, the tech giant announced a new feature in its Google Maps app that will provide EV drivers with real-time battery information and help them plan EV trips by locating charging stations along the way and predicting the battery status at the end of the route. The new feature, which will be available through Android Auto, a platform developed by Google to allow users to integrate their Android devices (such as their smartphones) with their car's infotainment system, will be implemented first on the Ford Mustang Mach-E and F-150 Lightning and will later expand to other EV brands.

Google's latest innovation is just the last link in the chain in a comprehensive strategy of "taking over" the automotive sector that the company has been leading in recent years. As part of it, Android Auto is not the only way Google interfaces with the infotainment system, when Google built-in, has already been adopted by leading OEMs such as Volvo, Honda and Renault. This integrated solution enriches the driving experience with voice navigation, media streaming, and app access directly through the car's infotainment system. At CES, Google also presented its latest additions to the platform including trip planning capabilities, the Chrome browser and the Weather Channel app.
And of course, we must not forget Google's intriguing self-driving project, known as Waymo, in which the company develops autonomous driving technologies which are the core of its emerging robotaxi service (“Waymo One”) and potentially the technological source for autonomous systems of OEMs (“Waymo Driver”).

While some other bigtechs such as Apple with its Carplay (equivalent to Android Auto) or Amazon with Zoox (equivalent to Waymo) are also operating in the automotive industry, their scope of operation is limited, giving Google the lead among the giants and an ever-expanding role within the industry. As we know from other industries, Google mobility services and systems offer unparalleled convenience, efficiency, and innovation, taking the in-car experience and the future self driving to the next level. However, the known google-related concerns about privacy, data security, and dependency on the company’s services, as well as monopolization and harm to competition are very relevant to the automotive industry. 

Right now, it looks like Google's grip on the industry will expand as OEMs want, but also must, use its services. On the one hand, Google allows the manufacturers to provide an enriched in-car experience that they probably would not have been able to develop in-house. On the other hand, since Google touches so many aspects of consumers' lives and since it already exists in so many vehicles (over 200 million according to last estimates), OEMs who choose to disconnect Google from their vehicles may lose a mass audience. Although there are OEMs like GM who decided on an independent approach, the direction of the industry seems to be in the direction of the tech giants and Google in the lead.

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Are Air Taxis the Next Transportation Revolution or Destined to Stall Like the Hyperloop?

Just before 2023 drew to a close, the news of Hyperloop One's shutdown cast a shadow over Elon Musk's ambitious vision for a groundbreaking mode of transportation. The hyperloop, a concept that captivated several startups and investors with its promise of high-speed intercity travel, stumbled over a host of technological, financial, and practical hurdles that thwarted its progress—at least for the moment. With the hyperloop dream on pause, the spotlight shifts to the next avant-garde transportation contender: Air Taxis.

Air taxis, or urban air mobility (UAM), are innovative transportation services that use electric vertical takeoff and landing (eVTOL) aircrafts to provide on-demand, point-to-point flights within urban areas, offering a faster and more efficient alternative to traditional ground transportation for short-distance trips. These vehicles aim to alleviate traffic congestion, reduce emissions, and revolutionize urban transportation by providing convenient and sustainable aerial mobility options.

It is important to understand, Air Taxis are not supposed to be a cool new version of private helicopters but a form of transportation that will be accessible to the general public, something like Uber in the sky. In fact, Uber itself is active in the field when until 2020 it operated independently and since then as an investor and partner of Joby Aviation, one of the leading players in the industry. Joby, an American public company with total funding of $2B which already signed significant contracts and completed successful pilots, is not alone. Other public companies with $1B funding such as Lilium from Germany or Archer from the US, also recorded impressive milestones on the way to signing commercial agreements and receiving regulatory approvals.

One would have thought that the emerging field would mainly attract airlines that would want to use their knowledge and experience to diversify their revenues. However, OEMs that are mainly identified with the automotive industry do not stand by and integrate into the industry as investors such as Toyota and Stellantis or as manufacturers such as Hyundai. At CES 2024, Supernal, Hyundai’s air mobility subsidiary, presented its advanced version of the eVTOL aircraft called the S-A2 which according to the plan should become commercial in 2028 and be used to transport passengers for distances of up to 40 miles.

Yet, the path to mainstream air taxi services isn't without its obstacles. Stringent safety standards, market acceptance, and technological hurdles pose significant challenges, reminiscent of Uber's postponed air taxi launch originally slated for 2023.

The coming years will decide whether the air taxi vision is the next big flop or an innovation that will change urban mobility as we know it.

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