E-mobility | Part 1 - An overview on the EV landscape (English)

E-mobility | Part 1 - An overview on the EV landscape (English)

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  Vertex Perspectives |E-mobility 5-part series on e-mobility For more info, drop us an email at [email protected] An overview on the EV landscape
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  GOVERNMENTS AUTOMAKERS CONSUMERS EV WAVE What iscausing the charge towards EV adoption? From automakers' interest to supportive government policies and growing consumer acceptance, we take a look at the key drivers leading the EV revolution. AN OVERVIEW OF THE EV LANDSCAPE |
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  In Thailand, EVswill account for 30% of domestically made vehicles by 2030 In Europe, Mercedes-Benz unveils an EUR 40B plan to go all-electric by 2030 India's government plans to have around 1,500 charging stations in Mumbai by 2025 Government and automakers are accelerating plans to develop EV charging infrastructure and production China has over 800,000 publicly available EV charging outlets installed at the end of 2020 United States plans to install at least 500,000 charging points by 2030 AN OVERVIEW OF THE EV LANDSCAPE |
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  ICEV EV Automakers areswitching production lines from internal combustion engine vehicles (ICEV) to electric vehicles (EV) Powertrain and Power Electronics are the key differences between ICEV and EV. Today, ICEV manufacturers are replacing the traditional engine with an electric motor. This includes mastering the build and assembly of electric motor components, complex electrical systems and battery modules. Source: BCG Analysis Powertrain includes ICEV main components (i.e. engine & auxiliary systems) which are unnecessary for EV. Power Electronics includes the essential equipment in an EV but doesn't exist in pure ICEV. AN OVERVIEW OF THE EV LANDSCAPE |
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  OEMs are changing their batterysupply chain strategies Inclining towards "Buy over Build" Currently, there is no convergence towards a unique technology or solution for core EV powertrain design and this also presents a new opportunity in powertrains for part makers. Hyundai Motor Group buys power drive systems from U.S. automotive supplier BorgWarner (NYSE: BWA) for compact EVs. To begin production in 2023. Peugeot, has turned to Vitesco Technologies, a spinoff of major German supplier Continental. Nissan Motor affiliate Jatco, a Japanese maker of automatic transmissions, will start mass-producing e-axles by 2025. The systems will go to Nissan and other EV makers at home and abroad. Italy's Marelli, the result of a merger between Magneti Marelli and Japanese supplier Calsonic Kansei, aims to supply 1 million e-axles yearly as of 2025. Nidec moved quickly to build an e-axle factory in early EV adopter China and has started supplying the systems to Guangzhou Automobile Group and Geely Automobile Holdings. Magna (NYSE: MGA), which has been touted as a potential partner for a self-driving car from Apple, already makes cars under contract for BMW and Jaguar Land Rover. AN OVERVIEW OF THE EV LANDSCAPE |
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  03 Battery Cells, Power Electronics EVmanufacturing could potentially include both in-house and outsourced manufacturing models Battery Modules, Battery Packs, Electric Motors 02 BUILD EV transmissions BUY + BUILD 01 BUY + AN OVERVIEW OF THE EV LANDSCAPE |
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  Expanded from providingautomotive components and sub-systems into a full EV platform and final assembly business Using outsourced manufacturing can enable new entrants to easily enter the market while reducing manufacturing ramp risk New entrants are pursuing an outsourced model with Electronics Manufacturing Services (EMS) players. Built the Jaguar I-PACE EV Working with Fisker to bring the Ocean SUV market in 4Q22 AN OVERVIEW OF THE EV LANDSCAPE |
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  01 Automakers such as Fordand Volkswagen are adopting Tesla’s approach and shifting to a more vertically integrated model Benefits of vertical integration include: Higher degree of customization Closely aligned R&D and production Supply chain security and reduced dependence on suppliers Potential cost savings at scale More control over the production process and product quality 02 03 04 05 AN OVERVIEW OF THE EV LANDSCAPE |
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  2015 2016 20172018 2019 2020 125 100 75 50 25 0 31% 26% 25% 26% In 2020, global consumer spend on EV has increased to USD 120B signifying consumers’ interest in EV and hybrid vehicles while government support stabilises. Consumers continue spending on EV, signaling interest But, there are more barriers to overcome before the majority of consumers are comfortable with switching to EVs. Some barriers to adoption include driving range, cost/price premium and lack of electric vehicle charging infrastructure. Consumer spending Government spending Driving Range Cost/Price Premium Lack of electric vehicle charging infrastructure 10% 31% 4% 18% 24% 22% 22% 19% 24% 9% 34% 16% 20% 22% 18% 35% 32% 44% 25% 34% % = Largest concern in each market Source: Deloitte Global Automotive Consumer Survey 2018 Source: IEA AN OVERVIEW OF THE EV LANDSCAPE | USD Billions
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  USD 2T USD 12T USD14T USD 2T USD 1T With an increasing interest in EV, investors are making ESG-friendly investments in the transportation sector While the leading ESG-oriented region is Europe, the trend is growing faster in the US and other regions are catching up. Help manage investment risks 64% 65% 2020 2017 My firm derives reputational benefits 41% 32% It's our fiduciary duty 43% 36% Clients/Investors demand it 59% 45% Improve financial returns* 35% *No data as of 2017 Investors shared their Top 5 drivers for ESG investments includes managing risk and client demand. & Adapted from: CFA/ Visual Capitalist AN OVERVIEW OF THE EV LANDSCAPE | Source: Global Sustainable Investment Alliance USD = ESG Investment Value
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  Vehicle Manufacturing BatteriesCharging Powertrains Raw Materials 75% 50% 25% 0% F C E V e V T O L M I C R O - M O B I L I T Y E V I N F R A Since the beginning of 2020, notable EV startups across various sectors have completed their SPAC deals. Companies are not just making vehicles themselves, but also in the EV battery supply chain and charging infrastructure. SPAC exits are growing. Yet no clear winners have emerged. Some companies are raising money via SPACs to scale up activities even before generating substantial revenue. Completed SPACs Pending SPACs A V B A T T E R Y L i D A R E V SES is a Vertex Ventures China portfolio company while Innoviz Technologies is a Vertex Ventures Israel portfolio company AN OVERVIEW OF THE EV LANDSCAPE | Adapted from: Bloomberg Adapted from: Mobility-Related SPAC Deals Breakdown of SPAC listings by category
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  01 02 03 EV ADOPTION GROWING SPACEXITS In summary... Governments are accelerating plans to develop a robust EV charging infrastructure. Similarly, automakers are changing production lines and adopting new manufacturing models to accelerate EV production. EV CHARGING INFRASTRUCTURE & PRODUCTION Although global consumer spend on EV has increased, some barriers to adoption include driving range, cost/price premium and lack of electric vehicle charging infrastructure. Since the beginning of 2020, notable EV startups across various sectors (i.e. battery, infrastructure, manufacturing) have completed their SPAC deals. AN OVERVIEW OF THE EV LANDSCAPE | SPAC
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  In Part IIof our five-part series, we introduce the EV batteries landscape and the rise of alternatives. From lithium-ion to solid-state batteries, find out how EV are being powered and the alternatives rising to provide an efficient and cost-friendly solution. What's charging an EV? Battery Technology & Alternative Innovations C O M I N G U P N E X T . . . Have a question? Drop us an email at [email protected] Follow us on Social Media Stay tuned by subscribing to our newsletter: https://bit.ly/3GGxEDC