Range anxiety, high cost, lack of charging stations, safety concerns…
These are the main things that consumers have to overcome before switching to an electric vehicle (EV).
The actual list is much longer, but the things from the above list may not remain problems for too long.
Today, a typical internal combustion engine (ICE) vehicle has a range of 400 miles. EVs aren’t there yet, but their average driving range is around 300 miles. And it has been growing…
This range is more than enough for daily commute. However, it may not be enough for a long road trip.
You have to plan your trip carefully, checking all the chargers along the way. Moreover, don’t forget that the charge takes from 30 minutes to 12 hours. It can easily turn into an overnight stay somewhere you didn’t quite plan to spend so much time.
We understand that… and so do EV makers.
This is why leading car makers are developing a new technology that will change the EV industry forever.
New Battery Tech Could Double the Average Range
EV makers are about to mass-produce a new battery with 745 miles in range, which can be charged in as little as 10 minutes.
Not too bad!
An average driver covering 30 to 40 miles a day will need to recharge this battery every three weeks or so.
The technology is called a solid-state battery. They are more compact and cheaper than the current-generation ones.
Best of all, the technology is quite established. And it is getting massive adoption. Toyota, the second-largest carmaker in the world, is adopting the new battery type with a plan for mass production in 2027.
Other major battery producers are also advancing the technology. Chinese battery maker CATL is almost ready to launch commercial-scale semi-solid battery production. South Korean Samsung SDI has already developed a fully automated pilot line for these new batteries.
The new batteries lack an anode, which consists of graphite, silicon, or similar minerals. This helps to reduce the size, weight, cost, and charging time.
However, the assembly of the batteries is more challenging. It requires special facilities to reduce moisture exposure and limit oxygen access in the battery pack.
Other than that, the battery is still full of critical minerals such as lithium, nickel, cobalt, copper, and others. They are still an essential part of the new batteries, which should take over the market in the coming years.
This is why we still think that mass adoption of EVs is unstoppable. It’s a megatrend with high potential in the years to come.
Bloomberg estimated that the global EV fleet will reach 730 million by 2040. It’s a 26x growth from around 27 million at the end of 2022.
These new vehicles will require massive amounts of lithium, nickel, copper, cobalt, and others. Industry insiders already indicate a massive shortage of these minerals. This could ultimately lead to higher prices for these commodities.
This is where we think investors can take advantage of the rising prices and invest accordingly.
The Financial Star will keep providing insights on EV adoption and the companies with the most potential to benefit from this megatrend.
Thank you for your loyal readership,
The Financial Star team