March 29, 2024
Drive Shift | March Edition: Remote Driving's Reroute, The Secret to EV Expansion, The New Green Revolution
With robotaxis delayed, can remote driving startups find a new path?
As we've been gearing up for the era of robotaxis, recent hurdles have pumped the brakes on the rush to get them on the roads. With setbacks from big names like Cruise and the unraveling of Aptiv's collaboration with Hyundai in Motional, it's clear we're not as close to a world of driverless taxis as we thought. These speed bumps have sparked a rethink about where the whole autonomous vehicle (AV) scene is headed, and remote driving startups, which provide the operation of vehicles from a remote location by human operators and can enhance safety and address the technical limitations of autonomous systems, need to find their way until robotaxis will explode.
One promising avenue lies within the very core of the automotive sector. Companies like the German startup Vay and Estonian Elmo are pioneering "teledriving" services, reimagining car rentals and mobility solutions. Vay's launch in Las Vegas, Nevada, where remote drivers deliver cars for customer rental, illustrates the convenience and expanded service potential of this model. Elmo's similar offerings in Estonia and across Europe further validate this approach, showcasing the versatility of remote driving in enhancing user experiences and operational reach in the automotive domain.
Another possible direction is located outside the automotive industry, where remote driving technologies can be an innovative and efficient solution for industries such as logistics, construction, agriculture and others. Conceptually, these industries, some of which suffer from a lack of workers and desperately looking for opportunities to become more efficient and reduce costs, can use this technology to streamline processes, expand operating hours and lower the price of labor.
One of the startups that tried to take this route is Phantom Auto, which made a pivot to non-automotive industries several years ago. Over the years the company managed to raise $95M and offer remotely operated forklifts and remote operating services for the logistics industry. However, this month the company decided to shut down its operations, due to “market conditions and insufficient funding”, according to its CEO.
While we shouldn't draw firm conclusions from Phantom Auto's shut down, this event raises questions about the future of the technology. Undoubtedly, the technology is innovative and can provide a solution for many industries. However, the market’s positioning vis-à-vis the robotaxi industry also points to its challenges and strategic dilemmas. If the market sees itself as complementary to the development of robotaxis, can it hold up long term with the delay of commercialization? On the other hand, if it is an alternative to robotaxis, is it a sufficiently efficient solution with a profitable business model?
In any case, it will be fascinating to see how this exciting technology will position itself in the coming years.
Is the Key to EV Success Hidden in Charging Times?
The race to widespread electric vehicle (EV) adoption is on, but it's not without its hurdles. From pricing and range concerns to insurance costs, safety qualms, and environmental impacts, EV manufacturers face many challenges. Yet, at the heart of their efforts lies a critical battleground: charging speed. It's a game-changer for drivers, promising less time tethered to charging stations and more time on the open road, easing range anxiety, and bolstering the appeal of EVs for daily use.
Fast EV charging poses several challenges, including the need for robust infrastructure capable of handling high power levels without causing grid congestion or infrastructure strain. Additionally, according to various estimations, fast charging may lead to increased battery degradation over time, necessitating careful management of charging protocols to optimize battery health and longevity. Moreover, the cost of implementing and maintaining fast charging infrastructure can be substantial, requiring significant investments from both public and private stakeholders to ensure affordability and accessibility for EV users.Therefore, the availability of fast charging stations remains limited in many regions, hindering the widespread adoption of electric vehicles, especially for long-distance travel.
One way to speed up the charging speed is by improving the infrastructure, as many providers globally are participating in the race to develop the ideal charger, one that will charge the fastest and will affect the battery's health as little as possible and whose costs will make economic sense. Last month, one startup claimed that it developed the fastest chargers in the US. This is the Google-backed Gravity, which claims that the charger it launched last month in New York is capable of delivering up to 500 miles of range in just 5 minutes. If true, Gravity's charging stations are the fastest in North America, even faster than the latest version of Tesla Supercharger.
On another front, smart battery management software is emerging as a game-changer, promising to streamline the charging process. By fine-tuning charging speeds in real-time based on battery condition and temperature, this tech aims to slash waiting times and extend battery lifespans. Volvo's recent move to invest in Breathe Battery Technologies underscores the potential here, with promises of cutting charging times by up to 30% for its EV lineup—a significant edge in the competitive EV market.
In the coming years, the EV share will only expand with almost every OEM offering their own electric model. An ideal charging experience can differentiate between champions and losers.
Could the Green Revolution in Cars Come from Somewhere Other Than Electricity?
In the auto industry, the shift towards electric vehicles (EVs) seems almost universal, with a push from global regulators aiming to phase out sales of gasoline cars by 2035. This trend signals a potential end to the era of internal combustion engine (ICE) vehicles by 2050. However, some key players in the automotive world, along with several European countries, are not ready to bid farewell to ICE vehicles just yet. They argue that alternative fuels aka synthetic fuels, could either match the environmental benefits promised by EVs or at least make ICE vehicles more eco-friendly until we can fully transition to electric.
E-fuels, or electrofuels, are synthetic fuels produced using renewable electricity and captured carbon dioxide. Through processes like electrolysis and chemical synthesis, renewable electricity is used to split water into hydrogen and combine it with captured carbon dioxide to produce liquid hydrocarbon fuels. As renewable electricity powers the entire production process and the carbon dioxide used is captured from the atmosphere or industrial processes, e-fuels result in net-zero carbon emissions when used, making them a carbon-neutral alternative to conventional fossil fuels.
Among the automotive leaders exploring e-fuels, Porsche stands out. Despite its commitment to electrification, Porsche is keen on maintaining its ICE vehicle lineup as much as feasible. The company has notably invested over $100 million in a Chilean plant dedicated to e-fuel production, aiming to produce over 500 million liters annually by the decade's end. Other brands like Mazda and Stellantis, along with Tier1 companies such as Bosch and Iveco, are also exploring e-fuels, with some even joining forces in lobbying organizations.
Undoubtedly, this area is creating interest in part of the mobility industry (automotive and aviation), as reflected in the impressive $129M fundraising of the German e-fuels company INERATEC last month, one of several significant deals in recent years. However, the field is far from a consensus. Today the e-fuels are still not ready for mass commercial use and have to deal with complex problems. The very high cost of production, the unideal energy efficiency caused by the loss of energy during the process and the energy-intensive nature of the process compared to EV charging generates objections to the field. The opponents, some of them are leading OEMs, claim that due the acute challenges of e-fuels production, investment in the field is a waste of time and an unnecessary distraction from the electrification process that the industry is going through.
As we have already discussed in previous blogs, the historical transition to electric vehicles consists of complex and varied aspects and the road to an electric future is really not a ride in the park. Therefore, it will be interesting to follow the development of the alternatives, among them the innovative e-fuels.
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With robotaxis delayed, can remote driving startups find a new path?
As we've been gearing up for the era of robotaxis, recent hurdles have pumped the brakes on the rush to get them on the roads. With setbacks from big names like Cruise and the unraveling of Aptiv's collaboration with Hyundai in Motional, it's clear we're not as close to a world of driverless taxis as we thought. These speed bumps have sparked a rethink about where the whole autonomous vehicle (AV) scene is headed, and remote driving startups, which provide the operation of vehicles from a remote location by human operators and can enhance safety and address the technical limitations of autonomous systems, need to find their way until robotaxis will explode.
One promising avenue lies within the very core of the automotive sector. Companies like the German startup Vay and Estonian Elmo are pioneering "teledriving" services, reimagining car rentals and mobility solutions. Vay's launch in Las Vegas, Nevada, where remote drivers deliver cars for customer rental, illustrates the convenience and expanded service potential of this model. Elmo's similar offerings in Estonia and across Europe further validate this approach, showcasing the versatility of remote driving in enhancing user experiences and operational reach in the automotive domain.
Another possible direction is located outside the automotive industry, where remote driving technologies can be an innovative and efficient solution for industries such as logistics, construction, agriculture and others. Conceptually, these industries, some of which suffer from a lack of workers and desperately looking for opportunities to become more efficient and reduce costs, can use this technology to streamline processes, expand operating hours and lower the price of labor.
One of the startups that tried to take this route is Phantom Auto, which made a pivot to non-automotive industries several years ago. Over the years the company managed to raise $95M and offer remotely operated forklifts and remote operating services for the logistics industry. However, this month the company decided to shut down its operations, due to “market conditions and insufficient funding”, according to its CEO.
While we shouldn't draw firm conclusions from Phantom Auto's shut down, this event raises questions about the future of the technology. Undoubtedly, the technology is innovative and can provide a solution for many industries. However, the market’s positioning vis-à-vis the robotaxi industry also points to its challenges and strategic dilemmas. If the market sees itself as complementary to the development of robotaxis, can it hold up long term with the delay of commercialization? On the other hand, if it is an alternative to robotaxis, is it a sufficiently efficient solution with a profitable business model?
In any case, it will be fascinating to see how this exciting technology will position itself in the coming years.
Is the Key to EV Success Hidden in Charging Times?
The race to widespread electric vehicle (EV) adoption is on, but it's not without its hurdles. From pricing and range concerns to insurance costs, safety qualms, and environmental impacts, EV manufacturers face many challenges. Yet, at the heart of their efforts lies a critical battleground: charging speed. It's a game-changer for drivers, promising less time tethered to charging stations and more time on the open road, easing range anxiety, and bolstering the appeal of EVs for daily use.
Fast EV charging poses several challenges, including the need for robust infrastructure capable of handling high power levels without causing grid congestion or infrastructure strain. Additionally, according to various estimations, fast charging may lead to increased battery degradation over time, necessitating careful management of charging protocols to optimize battery health and longevity. Moreover, the cost of implementing and maintaining fast charging infrastructure can be substantial, requiring significant investments from both public and private stakeholders to ensure affordability and accessibility for EV users.Therefore, the availability of fast charging stations remains limited in many regions, hindering the widespread adoption of electric vehicles, especially for long-distance travel.
One way to speed up the charging speed is by improving the infrastructure, as many providers globally are participating in the race to develop the ideal charger, one that will charge the fastest and will affect the battery's health as little as possible and whose costs will make economic sense. Last month, one startup claimed that it developed the fastest chargers in the US. This is the Google-backed Gravity, which claims that the charger it launched last month in New York is capable of delivering up to 500 miles of range in just 5 minutes. If true, Gravity's charging stations are the fastest in North America, even faster than the latest version of Tesla Supercharger.
On another front, smart battery management software is emerging as a game-changer, promising to streamline the charging process. By fine-tuning charging speeds in real-time based on battery condition and temperature, this tech aims to slash waiting times and extend battery lifespans. Volvo's recent move to invest in Breathe Battery Technologies underscores the potential here, with promises of cutting charging times by up to 30% for its EV lineup—a significant edge in the competitive EV market.
In the coming years, the EV share will only expand with almost every OEM offering their own electric model. An ideal charging experience can differentiate between champions and losers.
Could the Green Revolution in Cars Come from Somewhere Other Than Electricity?
In the auto industry, the shift towards electric vehicles (EVs) seems almost universal, with a push from global regulators aiming to phase out sales of gasoline cars by 2035. This trend signals a potential end to the era of internal combustion engine (ICE) vehicles by 2050. However, some key players in the automotive world, along with several European countries, are not ready to bid farewell to ICE vehicles just yet. They argue that alternative fuels aka synthetic fuels, could either match the environmental benefits promised by EVs or at least make ICE vehicles more eco-friendly until we can fully transition to electric.
E-fuels, or electrofuels, are synthetic fuels produced using renewable electricity and captured carbon dioxide. Through processes like electrolysis and chemical synthesis, renewable electricity is used to split water into hydrogen and combine it with captured carbon dioxide to produce liquid hydrocarbon fuels. As renewable electricity powers the entire production process and the carbon dioxide used is captured from the atmosphere or industrial processes, e-fuels result in net-zero carbon emissions when used, making them a carbon-neutral alternative to conventional fossil fuels.
Among the automotive leaders exploring e-fuels, Porsche stands out. Despite its commitment to electrification, Porsche is keen on maintaining its ICE vehicle lineup as much as feasible. The company has notably invested over $100 million in a Chilean plant dedicated to e-fuel production, aiming to produce over 500 million liters annually by the decade's end. Other brands like Mazda and Stellantis, along with Tier1 companies such as Bosch and Iveco, are also exploring e-fuels, with some even joining forces in lobbying organizations.
Undoubtedly, this area is creating interest in part of the mobility industry (automotive and aviation), as reflected in the impressive $129M fundraising of the German e-fuels company INERATEC last month, one of several significant deals in recent years. However, the field is far from a consensus. Today the e-fuels are still not ready for mass commercial use and have to deal with complex problems. The very high cost of production, the unideal energy efficiency caused by the loss of energy during the process and the energy-intensive nature of the process compared to EV charging generates objections to the field. The opponents, some of them are leading OEMs, claim that due the acute challenges of e-fuels production, investment in the field is a waste of time and an unnecessary distraction from the electrification process that the industry is going through.
As we have already discussed in previous blogs, the historical transition to electric vehicles consists of complex and varied aspects and the road to an electric future is really not a ride in the park. Therefore, it will be interesting to follow the development of the alternatives, among them the innovative e-fuels.
