With the unstoppable growth of electric cars, what is the way to go?

The automotive industry is rapidly evolving to meet the growing demand for electric vehicles. Companies are investing in infrastructure and technology, taking advantage of advanced robotics, and the latest innovations. However, the electric vehicle market also faces challenges, such as price volatility due to changes in material costs and public policy, as well as supply chain vulnerabilities.

Despite these challenges, the viability of electric vehicles is becoming increasingly evident. Consumers are opting for electric options, due to price parity with gasoline-powered cars and significant maintenance savings. In addition, the charging infrastructure is growing rapidly, increasing consumer confidence in the technology.

For the next few years, the revolution of electric vehicles is looking like it could take over the automotive industry. Investments in electric vehicle and battery startups are increasing, reshaping the industry in the long term.

In particular, the charging infrastructure for electric vehicles is experiencing rapid growth, with over 130,000 chargers currently available⁶ . This increase in the availability of charging points is boosting consumer confidence in the practicality of electric vehicles, as it is now more convenient and accessible to recharge their vehicles. In addition, smart cities are adapting their infrastructure to better integrate with electric cars, using smarter technologies to optimize charging and energy management.

The big trends around electric cars

Innovation and technological development are unstoppable with the consolidation of the automotive industry. The following are the major trends around this innovative and unstoppable sector⁷ :

Robotics:

• Robotics is widely used in automotive manufacturing to meet the demand for electric vehicles and batteries, potentially reducing costs.
• Robots can handle heavy components needed for electric vehicles and make assembly more efficient and accurate.
• AI-driven robotics offer autonomous or collaborative operation.
• Companies such as FANUC America and Symbio, offer automation and collaborative solutions, respectively.
• ABB launched new robots specifically for electric vehicle battery production in 2022, increasing speed and flexibility.
• Omron specializes in sensor and control technologies for automated assembly, and Rockwell Automation offers control systems for electric vehicle production.

Technological advances:

• Chipmakers are experiencing growth thanks to the adoption of electric vehicles, needing semiconductors for chargers, batteries, and cabin systems, among others.
• Companies such as Wolfspeed supply silicon carbide semiconductors for faster charging times and greater autonomy.
• Analog Devices supplies battery management systems and NXP Semiconductors are used by Volkswagen.
• Companies such as Honeywell, AllegroMicroSystemsm, and PCB, develop sensors for electric vehicle systems.
• Companies such as ChargeLab offer backend EV charging software, and Geotab and Fleetio offer EV fleet management solutions.

Relocation trends:

• Driven by supply chain vulnerabilities and favorable policies, U.S. manufacturing companies are choosing to build new fabs or increase production on U.S. soil.
• The CHIPS and Science bill is spurring investment in the domestic semiconductor industry.⁸
• If trends continue, relocation to the U.S. could bring back 40% of previously offshored jobs and revitalize domestic electric vehicle and battery manufacturing.⁹
• Ford Motor has moved product development to the United States, and received a $9.2 billion federal loan to build three battery factories in the US.¹⁰
• LG Energy Solution has invested $3 billion in its Michigan battery facility to supply electric vehicles to Toyota and General Motors.¹¹
• The US is home to three of Tesla's Gigafactories, which produce electric motors, energy storage systems, vehicle propulsion systems, and batteries in high volume.

In the face of this growth, companies are increasingly adopting electric trucks in their fleets to meet their carbon reduction targets and take advantage of the benefits of tax credits. This transition to electric commercial vehicles is contributing significantly to reducing emissions and driving sustainability in freight transportation. In addition, although electric and autonomous vehicles are distinct technologies, their futures are interconnected. Electric vehicle buyers are showing interest in semi-autonomous driving functions, indicating a gradual convergence toward fully electric autonomous vehicles.