Post-Covid Electric Vehicle Adoption A Game Changer for EV Battery Technology
Gas Prices, Infrastructure, and Selection: Why More People Will Be Buying EVs Post-Covid
Life has finally taken those first few steps back into normalcy post-covid. However, as many people expectantly begin planning vacations or begin commuting back to their offices, they are being confronted by a harsh new reality – exorbitant gas prices.
Pent-up demand, higher oil prices, and supply chain challenges are leading to global gas price woes. And with governments worldwide pushing for reduced reliance on fossil fuels in favour of EVs, many consumers are quickly facing the fact that high gas prices may be the next new normal – and planning accordingly.
Post-Covid, demand for electric vehicles is on the rise. In the US, a recent study found that 43% of Americans were considering purchasing an EV for their next vehicle, up over 80% from one year earlier. In Canada, close to 70% of consumers surveyed who were considering purchasing a car within the next five years said they were “very likely” to buy an EV.
Because of the anticipated increase in demand, investors have been flocking into EVs, leading some market watchers to speculate that some EV car stocks are overvalued.
However, for savvy investors, there may still be an opportunity with EV battery manufacturers. One company, in particular, Extreme Vehicle Battery Technologies Corp (CSE: ACDC), has quietly been making moves and is looking primed for upward movement.
What To Expect From A Post-Covid EV Market?
The first half of 2020 saw global EV sales drop dramatically. China, Europe, and the US all witnessed a near paralysis of EV sales as Covid lockdown measures froze production and cut demand. However, EV sales were quick to recover in the second half of 2020 and remained strong throughout the first and second quarter of 2021.
There are a few factors in play that supported EV sales despite the ongoing pandemic. First, many major markets like China, the EU, and the US introduced substantial stimulus packages to help support struggling economies.
These stimulus measures helped spur exponential growth of EV sales in several important markets, with global EV sales up 125% year over year in Q1 2021. While this growth rate is not sustainable long-term, some experts anticipate growth of up to 50% year over year for EVs globally across all vehicle classes.
Secondly, many governments have pledged to phase out fossil fuel vehicles as part of an effort to reach greenhouse gas reduction targets. To date, more than 20 countries, including China, have committed to fully phasing out ICE for cars or set 100% EV sales targets within the next 10 to 30 years, while other countries, including the EU, Canada, and the UK, have pledged to be net-zero emission by 2050.
Other factors that will continue to drive consumer demand for EVs include rising gas prices, worsening global warming conditions, and government purchase incentives, combined with increased EV selection and EV cost closing in on parity with ICE vehicles.
EV Industry Is Facing A Global Challenge In Post-Covid Era
As demand for EVs continues to expand, automakers are facing a new challenge. A global computer chip shortage is putting the brakes on the number of EVs they can make, creating a bottleneck where demand is outstripping supply and leading to long delays in delivery for some EVs.
Ford Motor, which has been one of the hardest-hit auto manufacturers, has seen inventories drop to a quarter of what dealers typically hold, with fewer than 160,000 vehicles currently sitting at dealerships. Deliveries at Ford Motors US division were up only 9% in Q2, with 472,260 cars and light trucks sold.
By comparison, General Motors and Toyota saw sales rise 40% April to June, and Honda, Hyundai, and Kia, who have been less impacted by chip shortages, saw sales increase more than 70% in Q3 post-Covid.
EV maker Tesla, who acted quickly to pivot its firmware in anticipation of a chip shortage and has thus been less affected, has managed to deliver over 200,000 of its EVs worldwide in Q2, more than twice the amount it sold over the same period in 2020.
However, it’s not only automakers suffering from computer chip supply problems, companies who produce charging stations are also feeling the pain. EV charging infrastructure is dependent on chip technology, and without the necessary supply, they may not be able to keep up with increasing demand.
Solid-state battery? Not so fast
Some of the most significant challenges to widespread EV adoption relate to vehicle range and charging infrastructure. And while governments are investing heavily in the latter, the former remains a concern for many consumers.
To help improve EV range, researchers have been exploring solid-state batteries as a possible alternative to the lithium-ion batteries that now power EVs.
But the challenges in developing and manufacturing solid-state batteries on a commercial scale are enormous. It would require significant investment and extensive changes to the manufacturing process currently used in EV battery production.
Toyota is one of the first automakers to invest heavily in solid-state batteries, eyeing production dates in 2030. And many other EV makers are quickly following suit signing deals with specialized EV battery manufacturers. This surge in demand for EV battery talent only underlines the importance this technology will play in the fate of EVs.
However, while solid-state batteries may be the future of EVs, the focus right now is on making immediate improvements to existing EV battery technology, and EV Battery Technology has a leg up on most.
With Patent BMS, EV/ESS Solutions, And Blockchain-Based Payment Solution, EV Battery Tech Has A Better Position In This Post-Covid EV Battery Hunger Games
EV Battery Technology may not be making as much noise as other EV technology companies, but they have been making moves.
On June 10, 2021, EV Battery Technology announced that it had completed its second and final tranche of a non-brokered private placement. This final tranche issued 3,704,000 units at $0.50 per unit, for total gross proceeds of $5,000,000.
“Our goal is to provide consumers convenience and access to EV charging infrastructure on par with that of modern-day gasoline service stations. Our software and hardware development teams have been closely monitoring the EV market’s needs and we plan to meet those needs through technology and superior product development,” said EV Battery Tech CEO Bryson Goodwin.
Partner: Ethos Asset Management
On June 9, 2021, EV Battery Technology added to its growing list of partners, signing an agreement with Ethos Asset Management. Under terms of the deal, EV Battery Technology will exclusively provide battery technology solutions for all assets managed by Ethos, including motels, hotels, bowling alleys, shops, and transportation assets.
“Ethos has been doing due diligence on dozens of ESS solution providers to partner with on all our current and future assets. After months of discussions and thorough reviews, we are thrilled to partner with EV Battery Tech and IoniX,” stated M. Nathoo, CFO of Ethos.
Partner: Fairwater Properties
Further cementing their EV infrastructure footprint, EV Battery Tech recently entered into an exclusive supply deal with Fairwater Properties to provide EV Smart Chargers and ESS solutions for all properties under their management, including large high-rises and parkades.
“The opportunity to work with a strong partner that can take care of our energy needs as we move forward will be priceless as we expand,” commented Fairwater executive Ketan Ladva.
Back in February, EV Battery Technology formed a partnership agreement with leading Canadian LEV manufacture Daymak, whose latest Avvenire line has exceeded $420 million in pre-sale orders. All Daymak’s products will include EV Battery Technology’s IoniX Pro batteries, which account for 30% of the total production cost for the EVs.
“I love the technology”, Daymak’s CEO Aldo Baiocchi stated about EV Battery Tech’s technology. “From the Smart Wall to the specialized BMS with their battery packs, they are perfect for our current products and some of the projects we hope to announce soon.”
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.