Tag Archives: Electric Vehicles

Electric vehicles (EVs) have become more mainstream in today’s automotive industry, and the next few decades will see automakers electrifying their lineups and emphasizing emission-free cars. Some consumers hesitate to drive EVs because of their battery range, so how will auto manufacturers improve these critical devices? Here’s how far battery technology has come and what to expect in the future.

How Far Has Battery Technology Come for EVs?

The first EVs hit the road in the late 19th century, as inventors used primitive technology to power their machines. One of the first EVs came from Gustave Trouvé, who used a rechargeable battery to power a tricycle in 1880. By 1888, German engineer Andreas Flocken invented the first four-wheel electric car using a motor with about 1 horsepower. While it could only drive 9 mph, Flocken’s machine would be inspirational.

Modern EV batteries date back to 1997 with the EV1 from General Motors (GM). This vehicle didn’t last long on the market — as GM destroyed most of the cars — but its battery technology was critical for future machines. The EV1 used lead-acid batteries and had a range of about 74 miles before needing a charge. Nickel-metal hydride batteries doubled the range to 150 miles thanks to increased efficiency.

These batteries seem primitive by modern standards but were critical for the time and the evolution of battery technology. The inventions set up EVs to have improved technology for today’s EV revolution.

What EV Battery Technology Is Available Today?

Auto manufacturers transitioned from lead-acid to lithium-ion batteries in the 2010s, following Tesla’s success with the Roadster in 2008. The California-based EV manufacturer was the first to use these advanced devices in a car, with each system containing 6,831 lithium-ion cells for increased efficiency.

The Roadster could travel 200 miles on a single charge, giving consumers hope that manufacturers could produce efficient EV batteries and compete with gas-powered cars. Tesla’s innovation led to the Nissan Leaf, the Renault Fluence Z.E. and other mass-produced EVs utilizing advanced technologies.

This decade, EVs have improved their range and become more palatable for consumers needing reliable machines. While electric cars occupy a small market share now, experts say EVs will constitute 45% of new car sales by 2035 — signaling a significant shift in the automotive industry.

Most modern EVs still use lithium-ion batteries because they’re the most efficient mainstream option. However, researchers have found ways to improve battery technology and make electric cars more efficient.

What Does the Future Hold for Battery Technology?

EV demand has slightly slipped after a successful run in the late 2010s and early 2020s. Multiple automakers have announced they are pushing back EV production timelines because consumer desire has dropped. How can automakers pull customers back into buying EVs?

Making batteries more efficient to compete with gas-powered cars is a crucial first step. Additionally, manufacturers must produce more sustainable batteries to comply with environmental, social and governance (ESG) policies. Here are a few innovations on the horizon to improve EV battery technology.

Sodium-Ion

Sodium-ion (Na-ion) batteries are an emerging favorite for lithium-ion alternatives because they cost less and are currently in production in some countries. The International Energy Agency (IEA) says China plans to reach 30 production plants for creating Na-ion batteries, and it won’t be long before this technology spreads worldwide.

Na-ion batteries are advantageous because they contain no lithium, an expensive material for EV production. This alternative is cheaper and more accessible for the average EV driver. Using a Na-ion battery also brings advantages like faster charging and a reduced risk of overheating.

Cobalt-Free

Some question the sustainability of EV batteries, considering their use of cobalt. Much of the world imports this metal from the Democratic Republic of the Congo, where workers suffer adverse working conditions. Mining cobalt leads to polluted water and toxic effluents for the employees and surrounding communities.

These controversies have led researchers to develop cobalt-free batteries and boost sustainability. For instance, the University of Texas-Austin has created a battery using 89% nickel, with manganese and aluminum constituting the other elements. These cobalt-free batteries are less expensive and more energy-dense, making them a popular alternative for future developers.

Solid-State

EV batteries can be a liability in extreme hot and cold because the device must work harder to power the car. Using lithium-ion batteries means the liquid electrolyte solution is vulnerable to weather, so how can manufacturers remedy the problem? Solid-state batteries require no liquid or gas in their composition, making them a more stable alternative to lithium-ion devices. Removing liquid also means a reduced chance of leaks under the hood.

Solid-state batteries have existed for a while, but manufacturers like Toyota have improved them thanks to sulfide superionic conductors and other innovations. These batteries aren’t available in current vehicles, but reports say Toyota will implement them for commercial use by 2027. However, timelines could shift due to the supply chain and new research.

Advancing Battery Technology for EVs

Automakers are leaning into EVs to reduce emissions and meet sustainability goals. While technology has evolved, batteries have been an obstacle for consumers due to their perceived lack of range and reliability. Lithium-ion batteries have made EVs more efficient, and more innovations will arrive to boost range and safety.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

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Has the trend passed about caring for the environment and preventing harmful emissions?

Despite the fact that GMC is touting its new, 2024 Hummer EV SUV, starting at a cool $80,000 with a 329 range on a full battery charge, Reuters is reporting that the demand for electric vehicles isn’t keeping up with expectations. In October 2023, Honda and General Motors announced they were ending a $5 billion partnership to develop lower-cost EVs. GM says it’s to “enhance the profitability of our EV portfolio and adjust to slowing near-term growth.” Ford, too, just announced it pushed back its EV production timeline because of slower customer demand. Investors are taking notice. Automakers are thrown for a loop.

It’s not for lack of desire for electric vehicles by consumers, auto manufacturers and climate activists alike. Reducing the sting at the gas pump while helping the environment? Bring that on. Indeed, Cox Automotive Report tells us EV sales exceeded 300,000 units in the U.S. in Q3 2023. That’s record numbers.

So, what’s going on?

There are vexing factors swirling around this marketplace, colliding into a miasma of toil and trouble for auto manufacturers.

High interest rates = slowing demand

The current demand slowdown reflects the uncertain economy and the looming shadow of high interest rates (Will they go higher? Will they come down?) driving up the price of the already-expensive EVs. It’s a one-two punch. For most people, the decision to buy a car depends on the affordability of the monthly payment combined with other factors affecting their household budget. The vast majority of us are not rushing out to spend $80K on that Hummer. Maybe a more affordable model? Sure, but with sky-high interest rates driving up the monthly payment of already-expensive vehicles at the same time a pound of ground beef costs upwards of $8, people are taking a wait-and-see attitude. Maybe a gas-fueled car is a better bet right now.

Raw materials shortages for batteries = supply chain issues

As The Buzz EV News recently put it so succinctly, the raw materials that power EV batteries, namely lithium and cobalt, “aren’t exactly littering the landscape.” This, coupled with the fact that 90% of the supply chain for EV batteries runs through China, makes it difficult for U.S. auto manufacturers to realize efficient, profitable production. No one in the industry wants a repeat of the auto microchip shortage during the pandemic.

How is it all affecting auto manufacturers, and what can be done about it? At USCCG, we have a half century of experience dealing with the effects of supply, demand and the economy on many different industries. We work across the entire battery supply chain from mining to metals to battery manufacturing plants. Here’s how we see the issues playing out currently.

Auto manufacturers are doing a 180 (for now), so…

Based on the changing demand, automotive manufacturers are pulling back from EV investment right now and putting it back into traditional auto manufacturing. Even though the industry’s goal is still moving towards a 2030-2035 conversion to EVs, consumers are still buying gas-powered vehicles. Automakers need to maintain production to satisfy the demand.

…Demand and schedule planning is crucial, but…

Automakers’ backlogs need help — they have the orders and demand for gas vehicles, but are struggling to fulfill this demand and fill those orders. At USC, we happen to be the specialists in wrangling schedules, planning for demand when those sands keep shifting, and adding horsepower to teams just when they need it the most. It’s an all-hands-on-deck situation for auto makers, except…

…The skilled labor shortage is real

The new UAW contracts are driving labor costs throughout the industry, even in non-union facilities.  Couple that with the ever-shrinking skilled workforce, and it puts auto makers behind the eight ball just when they need to find and retain quality, reliable employees. At USC, we’ve been focusing on this issue, helping employers train their people on best practices and optimal processes. It’s crucial now, like never before.

EV issues aren’t going away. It’s time to reshore now

Yes, the demand is slowing. For now. But auto makers are still on track for conversion to electric vehicles, and the public still wants them. But these battery and supply chain issues are still plaguing the industry.

A few facts entering into this mix: The current Inflation Reduction Act included billions of dollars in government loans to fund EV battery plants in the U.S., and also included a $7,500 tax credit to people who buy U.S.-made EVs. It also allocated $7.5 billion to fund a network of charging stations around the U.S. (That, in itself is exciting for logistics nerds like us.)

Gov. Brian Kemp of Georgia is taking advantage of this trend, creating a push for EV jobs, major manufacturers including Hyundai and Kia located in the state, and pledges to make Georgia the “electric mobility capital” of the country.

TechCrunch+ says the U.S. is in an EV battery factory construction “boom” as a result of these initiatives. In 2019, there were just two battery factories here in the U.S. Today, 30 are either planned or under construction.

What does it all mean? It means auto manufacturers need to meet current demand while keeping an eye on the future. USC can help you do that. Contact us today.

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When looking into the trends for the automotive industry, there’s really only one headline. Electric vehicles. EVs are no longer “the future” of the industry. The future is now. It means many changes for the automotive industry, including changing demand, supply chain and inventory (which are all connected) and workforce challenges, in addition to the specter of new facilities to handle new assembly lines. For auto manufacturers, it means a heightened focus on efficiency, which we at USC Consulting Group are all about.

Electric vehicles (EVs) aren’t dominating the market. Yet. But they’re on the road there. According to research by the International Energy Association, the demand for electric vehicles is surging and is expected to rise 35% by the end of 2023 after a record-breaking 2022.

“Surge” is a good term for it, but “tsunami” might be even better. The EV market share in the worldwide automotive industry was hovering at around 4% in 2020, jumped to 14% in 2022 and will hit 18% by the end of 2023. It shows no signs of slowing down. By 2030, the EV market share is projected to rise to 60% in the U.S. and the EU.

It feels like we’re on the cusp of a great societal change with the surging EV market, the likes of which we’ve seen during the first and second industrial revolutions, the dawn of the internet and the day, back in 2007, when Steve Jobs stood on a stage in front of the world and introduced Apple’s new invention, the iPhone.

Yes, society will be impacted, but perhaps no sector more than auto manufacturers. It means great changes in demand, new challenges with supply chain and inventory, the urgent need for increased employee education, expertise and training, and changes on the line. It’s a whole new world out there for auto manufacturers, from the C-suite to inventory management to the production line, even extending to the dealerships.

How EVs are impacting automotive manufacturers

Here’s a look at the ways EVs are impacting the auto industry today, and how USC can help.

Changing demand

A good analogy for what’s happening in auto manufacturing right now in regard to changing demand is what we saw in the food processing industry during the pandemic. If a company was mainly supplying produce to restaurants, its entire market dried up when the restaurant industry was shuttered. Many processors shifted and began supplying grocery stores — two very different markets. Companies that were agile, lean and light on their feet (so to speak) were able to shift quickly in response to the shifting demand. So, too, with automotive today. Demand for traditional cars is lessening as demand for EVs is rising. It requires auto manufacturers to do a delicate “just in time” dance, which also involves supply chain and inventory.

For more info on how to roll with changing demand, read our eBook, Strategies for Meeting Increasing Customer Demand.

Supply chain

To state the obvious, EVs require different components, technologies and parts than traditional cars. Batteries, electric motors and other types of electronics, to name a few. On a higher level for auto manufacturers, it means developing new relationships that may be outside of the current supply chain, including battery manufacturers, those who deal with raw materials and microchips, and more. Supply chain woes that began during the pandemic are still bedeviling manufacturing operations in many industries, including automotive. New and unforeseen snags in the supply chain are sure to pop up as well. Solidifying while also diversifying your supply chain, with an eye toward reshoring, is critical.

Inventory

With shifting demand and supply chain challenges, this is an especially tricky time for the auto industry, inventory managers especially. It’s important to focus on inventory and output, ensuring a balance between too much and too little. To wrangle all of these issues, demand, supply and inventory, savvy auto manufacturers are employing a methodology we call SIOP: sales, inventory and operations planning.

S&OP is a time-tested business management process that involves sales forecast reports, planning for demand and supply, and other factors. The goal is to help companies get a better, more clear look at their operations and create better-informed strategy decisions, allowing them to deliver what clients need in the most profitable way. We’ve found a lot of our clients do not include inventory as a strategic tool in their S&OP process. Therefore, they leave the “I” out of SIOP. That’s a mistake, especially now for auto manufacturers. The key to SIOP is to emphasize inventory as a strategic tool to help offset variation in demand or production issues.

To find out more about SIOP, download our free eBook: “Sales, Inventory & Operations Planning: It’s About Time.”

Workforce

Ramping up EV production or even transitioning to EVs is going to require a lot from your workforce. In some cases, your best people who have been on the production lines for their entire careers will start to feel obsolete. It means reskilling and retraining of your current people, and hiring workers with expertise in EV technology.

Infrastructure

As the demand for EVs grows, the production line will need to grow with it, shifting from traditional engine vehicles (combustion) to the kind of specialized production that EVs require. It may mean new facilities and new technology.

All of these changes for the automotive industry require a sharp focus on efficiency to meet current demand and planning to gear up for future demand. If there was ever a time for Lean Six Sigma (a methodology involving less waste, greater efficiency and consistent quality) it’s now. Lean was developed back in the day for the auto industry, and it couldn’t be more pertinent today. At USC Consulting Group, we have decades of experience helping our clients navigate changing tides in their industries. To learn more about how we can help, contact us today.

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The automotive industry outlook shows it travelling down the road toward another challenging year. The global supply chain is still reeling from COVID-era issues resulting in slow manufacturing times. Reduced consumer demand for traditional vehicles is impacting the industry, and the gasoline crisis amid the Russia-Ukraine tensions is keeping people off the roads. Despite these challenges, there is great reason for positivity. Brighter skies are on the horizon.

One especially bright spot: Electric vehicles. EVs have taken the market by storm, with many manufacturers worldwide making pledges for increased production and utilization of this emerging technology. Along with that comes increased need for things like batteries and charging stations to support widespread EV use. It’s exciting to see the increased need for the infrastructure and tools required to go electric!

In this article — with information from The Economist Intelligence Unit’s (EIU) comprehensive Automotive Industry Outlook 2023 — we will highlight key trends to be aware of in the industry for the coming year.

Gas Uncertainty

As long as the tensions between Russia and Ukraine persist, gas prices and availability will remain a question mark — but it’s a trend that started long before those tensions erupted. It began with the COVID pandemic.

Beginning in March of 2020, demand for gas plummeted when the majority of the U.S. was put on forced isolation. People just weren’t commuting. The highways were like ghost towns. Midway through the pandemic, folks started wondering when was the last time they filled up their gas tanks. They might not have been able to remember, but the industry certainly did. It caused many of the oil refineries in the United States to stall or close their doors for good.

While refinery numbers are slowly creeping back up, challenges still exist. According to the Refinery Capacity Report from the U.S. Energy Information Administration (EIA), this past June saw a refining shortage of roughly one million barrels of oil a day compared to pre-pandemic numbers. Add that to the ongoing tensions in Eastern Europe, and the market has many questions to answer in regards to supply and refinement capabilities.

Supply chain shortages

While the global supply chain is rebounding from the unprecedented COVID-era delays, there is still work to be done and shortages of supply.

One of the most prominent concerns for the automotive industry is the status and availability of semiconductors. EIU anticipates that additional capacity for this essential piece of equipment won’t come until 2024 — and the shortages of essential minerals such as steel, aluminum, nickel and lithium won’t just impact the semiconductor market, but the production of EV batteries as well.

To combat this, many countries are taking action to increase local production and mineral extraction. The United States, for example, recently passed the CHIPS and Science Act of 2022. According to the White House briefing, the act will drastically increase domestic semiconductor research and production, and “strengthen American manufacturing, supply chains, and national security, and invest in research and development, science and technology (…) including nanotechnology, clean energy, quantum computing, and artificial intelligence.”

It remains to be seen if this can supplement the semiconductor shortage for 2023, but it is certainly a step in the right direction for future availability.

Stalled sales

After a rise in both new and used vehicle prices in 2022, sales for traditional automobiles are set to decline in 2023. The reasons include a perfect storm of reduced commuting time for people who continue to work from home, continued high gas prices and the aforementioned supply chain issues and semiconductor shortages, which caused a massive increase in cost for both new and used vehicles. The result? People are putting off buying new vehicles as their cars sit in their garages. One of the biggest culprits is simply the rising prices of new cars. Consumers paid $3,462 more on average for a new vehicle in 2022 than the previous year.

Slowly but surely, as the supply chain issues are repairing and more supply enters the market, sales and prices are set to decrease in the upcoming year. The EIU predicts that new car sales will decrease by 2.4% in North America… but estimated global vehicle sales of $79 million will continue to fall short of the pre-pandemic $88 million in sales.

“The total EV investment among automotive suppliers and manufacturers is set to reach $526 billion between 2022 and 2026.“

The EV wave

The shining star of the automotive industry in 2023 and beyond is the continued production and implementation of electric vehicles and charging stations.

While electric vehicles only accounted for 8% of global sales in 2021, production and market share is set to explode to an estimated 33% of global sales by 2028, and as high as 54% in 2035, according to Reuters. Not only that, but the total EV investment among automotive suppliers and manufacturers is set to reach $526 billion between 2022 and 2026, nearly double the investment from the beginning of the decade.

The EIU confirms that optimism, predicting that the sales of electric vehicles will grow by roughly 25% in 2023, to almost 11 million units. The ongoing tax breaks and subsidies provided by countries around the world are seemingly propelling this growth, with more incentive now than ever to join the EV automotive revolution.

We can help to navigate uncertainty

While the automotive industry outlook is set for a challenging year in 2023, there is still light at the end of the tunnel for manufacturers to get back on track and capitalize on new trends.

At USC Consulting Group, we are always ready to help your organization stay on top of the automotive industry. Give us a call today to ensure successful operations in the upcoming year and the foreseeable future.

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