Electric Vehicle

Charging Considerations for Our CAES Project

The three levels of EV charging are known as Level 1, Level 2, and Level 3.  Level 3 charging encompasses both DC Fast Charging and Tesla Supercharging.  Each level of charging is associated with a certain power output and therefore, a faster charging process.  The level of charging that a vehicle can handle is entirely determined by the capability of the vehicle itself and not the charging station.  For this reason, there are no risks associated with plugging an electric vehicle into a charging station that is over its maximum level.  Rather than damaging the battery or vehicle electronics, the vehicle will simply limit the amount of power delivered to its maximum capable level.

Three levels of EV charging:

  1. Level 1 charging
  • Standard 110 V outlet
  • Common in apartments, condos, offices, etc.
  • Typically between 12 and 16 amps of continuous power
  • Delivers between 3.5 and 6.5 miles of range per hour
  • Connectors used: J1772 and Tesla
  • Works well for hybrid vehicles with smaller batteries
  1. Level 2 charging
  • More common in single family residences and commercial workplaces
  • 240 V circuits
  • Typically between 16 and 40 amps of continuous power
  • Delivers between 14 and 35 miles of range per hour
  • Connectors used: J1772 and Tesla
  • Ideal for residential overnight charging
  1. Level 3 charging
  • Often used as range extenders along major travel corridors
  • Requires input of 480+ V
  • Typically 100+ amps (50 – 60 kW), sometimes up to 150 – 350 kW
  • 178 miles of range per hour
  • Requires commercial electrician in planning phase due to electric load and wiring
  • Not all EVs capable of DC fast charging
  • Connectors used: Combined Charging System (Combo), CHAdeMO, and Tesla

 

ELECTRIC VEHICLE INDUSTRY SUMMARY

Summary Recap

  • Automotive & mobility disruptive mega trends and the world’s direction towards decarbonization – future mobility value chain EV, charging, service, autonomy, shared, SW platform, etc.
  • Covid-19 has only accelerated the disruption and the industry is fast adapting to greater sustainability and digitalization across all domains

Industry & Market Growth Recap

  • Global commercial EV production to reach 2M+ units by 2027 from 129k in 2020 (CAGR of 41.10%)
  • Global electric bus market size to reach 704k units by 2027 from 81k in 2021 (CAGR of 43.10%)
  • South American HEV market to reach 114,700 units by 2025 from 23,400 in 2020 (CAGR of 25.49%)
  • Sale of electric buses expected to grow ~60% of global buses by ’30 and ~75% by ‘40
  • Sale of electric light-duty vans (LCV) expected to grow to 1/3 of global LCV by ‘30 and ~60% by ‘40

Recent Announcement

  • US FTA allocated $180M for FY2021 to assist state and local governments transition aging fleet into zero-emission EVs
  • US school buses expected to reach 20% electric with Biden administration’s short-term goals 
  • FedEx to invest $2B in the zero-emission delivery vehicle fleet and other carbon-cutting measures
  • UPS orders 10,000 next generation electric vehicles in efforts to turn into full electric fleet
  • USPS will integrate upto 165k EVs into the fleet within the next 10 years with multi-billion-dollar investment
  • Amazon committed 100,000 EV purchases to start the transition for entire fleet to run on renewable energy
  • Walmart announced full fleet electrification by 2040 starting with 4k passenger vehicles and followed by 6.5k semi-trucks

 

Data Points / Fact Recap

Regulatory / Legislation Trends

  • Motor vehicles collectively cause 75% of carbon monoxide emissions in the US
  • 95%+ countries pledged for carbon neutrality by 2050 (most aim to reduce 50% GHG emissions by 2030-2035)
  • US plans to increase EV sales to 6.9M by 2025 from 1.4M in 2020 leveraging government incentives
  • Biden administration prioritized funding the EV market and building charging infrastructure with $2 trillion infrastructure bill (at least 500,000 chargers nationwide by 2030)
  • US FTA’s Low-No Program assigned $180M to assist municipalities transition to zero-emission fleet
  • All major US cities target carbon neutrality by 2050 with mid markers for 50% reduction by 2030-2035
  • CA Clean Energy Act: Transit agencies must purchase at least 25% EV for fleet and transition 100% new purchases to EV by 2029

Corporation Trends

  • 35%+ companies of Fortune 500 have pledged to achieve climate goals (e.g. net-zero carbon)
  • Global auto manufacturers will prioritize EV production and begin to stop ICE production in 2035
  • GM’s plan to end its gasoline vehicle sales by 2035

Technology / Infrastructure Advancement

  • Battery technology advancement and decreasing cost to eliminate range concerns 
  • Avg. battery pack price continue decreasing – expected below $100/kwh by ‘24 & $58/kwh by ‘30
  • Connected services (e.g. for fleet mgmt., preventive maintenance & monitoring) coupled with EV fleet
  • Demand for fast expansion of charging infra. supported by energy/grid supply

Economy Trends

  • TCO for EVs start with a higher purchase price compared to conventional ICE vehicles but diluted through 50%+ savings on fuel and 30%+ savings in maintenance annually
  • Demand for package delivery services have increased 50%+ during the pandemic 

Insights Context

Mega trend drivers, such as global and local government carbon neutrality mandates, will push the key industry players to adapt by either producing appropriate low or zero-emission vehicles or purchasing them for fleet operations to match the new trending standards.

 

Over 1/3 of Fortune 500 companies have publicly committed to achieving various climate change mitigation targets by the end of 2020 and US FTA is allocating funds annually to assist municipalities transition from aging diesel bus and truck fleet to low or zero-emission vehicles. Additionally, major global institutional investors like BlackRock are transitioning their focus on eco-friendly corporations with goals toward net zero emissions to lower risk and invest sustainably – and mandating such standard as investment criteria

 

The current EV market and the most lagging commercial sector within is projected to dispense a wide range of opportunities for market growth, where Link can drive manufacturing and sales of electric vans, buses, and light trucks to organizations in need of a transition.

 

[1]

2021. Wayland, “Biden plans to replace government fleet with electric vehicles,” CNBC, Jan. 25, 2021. https://www.cnbc.com/2021/01/25/biden-plans-to-replace-government-fleet-with-electric-vehicles.html.

 

[2]

B. Insights, “Electric Vehicles Market Size 2021 | Is Expected to reach 985.72 Billion by 2027, exhibiting a CAGR of 17.4%,” GlobeNewswire News Room, Apr. 12, 2021. https://www.globenewswire.com/news-release/2021/04/12/2208243/0/en/Electric-Vehicles-Market-Size-2021-Is-Expected-to-reach-985-72-Billion-by-2027-exhibiting-a-CAGR-of-17-4.html.

 

[3]

Crossley, “Compressed air energy storage for offshore turbines,” Windpower Monthly, 25-Apr-2018. [Online]. Available: https://www.windpowermonthly.com/article/1456039/compressed-air-energy-storage-offshore-turbines. [Accessed: 30-Sep-2021]. 

 

[4]

“Committed to sustainability – Net-zero transition,” BlackRock. https://www.blackrock.com/corporate/sustainability/committed-to-sustainability (accessed Oct. 04, 2021).