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Planning 500,000 charging points for EVs by 2025, Shell becomes the latest company swept up in EV charging boom
Shell’s plan to roll out 500,000 electric charging stations in just four years is the latest sign of an EV charging infrastructure boom that has prompted investors to pour cash into the industry and inspired a few companies to become public companies in search of the capital needed to meet demand.
Since the beginning of the year, three companies have been acquired by special purpose acquisition vehicles and are on a path to go public, while a third has raised tens of millions from some of the biggest names in private equity investing for its own path to commercial viability.
The SPAC attack began in September when an electric vehicle charging network ChargePoint struck a deal to merge with special purpose acquisition company Switchback Energy Acquisition Corporation, with a market valuation of $2.4 billion. The company’s public listing will debut February 16 on the New York Stock Exchange.
In January, EVgo, an owner and operator of electric vehicle charging infrastructure, agreed to merge with the SPAC Climate Change Crisis Real Impact I Acquisition for a valuation of $2.6 billion — a huge win for the company’s privately held owner, the power development and investment company LS Power. LS Power and EVgo management, which today own 100% of the company, will be rolling all of its equity into the transaction. Once the transaction closes in the second quarter, LS Power and EVgo will hold a 74% stake in the newly combined company.
One more deal soon followed. Volta Industries agreed to merge this month with Tortoise Acquisition II, a tie-up that would give the charging company named after battery inventor Alessandro Volta a $1.4 billion valuation. The deal sent shares of the SPAC company, trading under the ticker SNPR, rocketing up 31.9% in trading earlier this week to $17.01. The stock is currently trading around $15 per share.
Not to be outdone, private equity firms are also getting into the game. Riverstone Holdings, one of the biggest names in private equity energy investment, placed its own bet on the charging space with an investment in FreeWire. That company raised $50 million in a new round of funding earlier this year.
“The writing is on the wall and the investors have to take the time. There’s been a flight out of the traditional investment opportunities in markets,” said FreeWire chief executive Arcady Sosinov, in an interview. “There’s been a flight out of the oil and gas companies and out of the traditional utilities. You have to look at other opportunities… This is going to be the largest growth opportunity of the next 10 years.”
FreeWire deploys its infrastructure with BP currently, but the company’s charging technology can be rolled out to fast food companies, post offices, grocery stores or anywhere people go and spend somewhere between 20 minutes and an hour. With the Biden administration’s plan to boost EV adoption in federal fleets, post offices actually represent another big opportunity for charging networks, Sosinov said.
“One of the reasons we find electrification of mobility so attractive is because it’s not if or how, it’s when,” said Robert Tichio, a partner at Riverstone in charge of the firm’s ESG efforts. “Penetration rates are incredibly low… compare that to Norway or Northern Europe. They have already achieved double-digit percentages.”
A recent Super Bowl commercial from GM featuring Will Farrell showed just how far ahead Norway is when it comes to electric vehicle adoption.
“The demands on capital in the electrification of transport will begin to approach three quarters of a trillion annually,” Tichio said. “The short answer to your question is that the needs for capital now that we have collectively, politically, socially economically come to a consensus in terms of where we’re going and we couldn’t say that 18 months ago is going to be at a tipping point.”
Shell already has electric vehicle charging infrastructure that it has deployed in some markets. Back in 2019 the company acquired the Los Angeles-based company Greenlots, an EV charging developer. And earlier this year Shell made another move into electric vehicle charging with the acquisition of Ubitricity in the U.K.
“As our customers’ needs evolve, we will increasingly offer a range of alternative energy sources, supported by digital technologies, to give people choice and the flexibility, wherever they need to go and whatever they drive,” said Mark Gainsborough, executive vice president, New Energies for Shell, in a statement at the time of the Greenlots acquisition. “This latest investment in meeting the low-carbon energy needs of US drivers today is part of our wider efforts to make a better tomorrow. It is a step towards making EV charging more accessible and more attractive to utilities, businesses and communities.”
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Angling to be the Carfax for EV batteries, Recurrent raises $3.5 million
The Seattle-based startup Recurrent said today it has closed on $3.5 million in financing as it looks to become the Carfax for electric vehicle batteries.
The battery system is arguably the most important part of any electric vehicle and as the market for used electric vehicles expands, independent verification on battery life and range can help car buyers with their purchasing decision, the company said.
Investors include Wireframe Ventures, PSL Ventures, Vulcan Capital, Prelude Ventures, Powerhouse Ventures, Ascend.VC and the American Automobile Association’s (AAA) Washington chapter.
“Used car sales are at least double new car sales every year. With the third anniversary of Tesla’s Model 3 and the rapid introduction of new electric models across all vehicle makers, used EV sales are about to grow substantially,” Paul Straub, managing director of Wireframe Ventures, said in a statement. “The timing is right for a first mover with a strong data and technology advantage to bring confidence and transparency to these transactions.”
The company said it will use the money to invest in continued product development as it refines its third-party condition reports for used electric vehicle shoppers and battery analytics stats for current electric vehicle owners.
Recurrent collects its data from 2,500 volunteer electric vehicle drivers who currently use the Recurrent service for monthly battery reports on their own vehicles
“While there’s clearly a market-driven opportunity here, we’re particularly excited about the potential impact of the Biden administration’s policies on EV adoption,” Emily Kirsch, founder and managing partner of Powerhouse Ventures, said in a statement. “We’ve seen the huge impact that favorable policies are having in the EU and think there’s a lot of upside potential in a similar acceleration in the U.S.”
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Panasonic explores a European battery deal with Norway’s largest energy and industrial companies
Panasonic, one of the world’s largest manufacturers of lithium-ion batteries, has signed a preliminary agreement with the Nordic energy company Equinor and engineering and industrial company Norsk Hydro to collaborate on building a battery business in Northern Europe.
The three companies said that over the coming months they’ll work to assess the market for lithium-ion batteries in Europe and explore the potential for building a big battery business in Norway.
“This collaboration combines Panasonic’s position as an innovative technology company and leader in lithium-ion batteries, with the deep industrial experience of Equinor and Hydro, both strong global players, to potentially pave the way for a robust and sustainable battery business in Norway,” said Mototsugu Sato, executive vice president of Panasonic, in a statement. “We are pleased to enter into this initiative to explore implementing sustainable, highly advanced technology and supply chains to deliver on the exacting needs of lithium-ion battery customers and support the renewable energy sector in the European region.”
As part of the agreement, the companies will explore the potential for an integrated battery value chain and for co-locating supply chain partners, according to a statement.
Panasonic is running neck and neck with LG Chem to be the leading supplier of batteries for electric vehicles in the world. The company’s main customers for batteries are Tesla and Toyota, while LG counts automakers including General Motors, Groupe Renault, Hyundai, Ford Motor Company and Volvo as its main customers.
Panasonic’s push into Northern Europe alongside two big regional players in hydrocarbons and renewable energy is a sign of the potential that exists in the European market beyond automotive.
“Our companies seek to be leaders in the energy transition. The creation of this world-class battery partnership demonstrates Equinor’s ambition to become a broad energy company,” said Al Cook, executive vice president of Global Strategy & Business Development at Equinor, in a statement. “We believe that battery storage will play an increasingly important role in bringing energy systems to net zero emissions. By pooling our different areas of energy expertise, our companies will seek to create a battery business that is profitable, scalable and sustainable.”
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Amazon debuts its first fully electric delivery vehicle, created in partnership with Rivian
Amazon has received delivery of its very first, custom-built EV delivery van — a vehicle built through its partnership with electric transportation startup Rivian. The van doesn’t look too different from existing, traditional fuel and hybrid commercial delivery vans (though there are a lot more rounded edges), but most of the innovation is happening in less obvious places.
In a blog post detailing the vehicle, Amazon outlined some of the unique features of its custom vehicle, including sensor-based highway driving and traffic assist features; exterior cameras that can provide a 360-degree view for the driver via a digital display; a larger interior floor space in the cabin to help with drivers getting to and from the cabin compartment; surround tail lights for better braking visibility for other drivers; integrated three-level shelving and a bulkhead cargo compartment separating door; and finally, of course –built-in Alexa voice assistant integration.
Amazon announced a sizeable investment in Rivian in 2019, when it led a $700 million round for the startup EV maker. The e-commerce giant then announced last September that it was ordering 100,000 of the custom-made electric delivery vans. Rivian also intends to build and ship electric pickups and SUVs to consumers, on top of its commercial vehicle plans.
Amazon plans to ramp deployment of its all-electric fleet form here, starting with 10,000 custom vans on roads globally within the next two years, and then expanding to a total fleet size of that full 100,000 order by 2030, the company says. Rivian, meanwhile, says it has begun a pilot production line run of its Illinois factory, and plans to begin delivery of its SUV starting in June 2021, with shipments of its SUV starting next August.
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California will require all passenger vehicles sold in the state be zero-emission by 2035
California Governor Gavin Newsom issued an executive order on Wednesday requiring sales of all new passenger vehicles be zero-emission by 2035.
The new order would be a huge boost for electric vehicles, and vehicles using alternative fuels like hydrogen, and could boost a sector that’s already surging in California.
As an announcement from the California governor’s office indicates, the transportation sector is responsible for more than half of all of California’s carbon pollution, 80% of smog-forming pollution and 95% of toxic diesel emissions.
“This is the most impactful step our state can take to fight climate change,” said Governor Newsom, in a statement. “For too many decades, we have allowed cars to pollute the air that our children and families breathe. Californians shouldn’t have to worry if our cars are giving our kids asthma. Our cars shouldn’t make wildfires worse – and create more days filled with smoky air. Cars shouldn’t melt glaciers or raise sea levels threatening our cherished beaches and coastlines.”
After the order, the California Air Resource Board will develop regulations that will mandate 100% of sales of passenger cars and trucks are zero-emission by 2035.
Setting the 2035 target would achieve reductions in greenhouse gases above 35% and an 80% improvement in oxides of nitrogen emissions from cars.
The board will also develop regulations that require operations of medium and heavy-duty vehicles to be fully zero-emission by 2045, where feasible.
Under the order, state agencies in partnership with the private sector will be required to accelerate deployment of affordable fueling and charging options. The order also requires broad accessibility to zero-emission vehicles, according to a statement.
What it won’t require is for Californians who own gasoline-powered cars to give them up or deny car owners the ability to sell their gas-powered cars in the used car market.
With the initiative, California is joining 15 countries that have already committed to phasing out gas-powered cars, according to a statement.
Built into the order is an assumption that zero-emission vehicles will be cheaper and better than fossil fuel-powered cars, but there are significant hurdles — and opportunities before the market gets there.
There’s going to need to be a massive buildout of charging stations and fueling stations for electric and hydrogen powered vehicles. New charging technologies will need to be put in place to enable faster charging, and new financing models will need to be put in place to ensure the kind of accessibility the California government is requiring.
All of these opportunities should have startups champing at the bit, and several companies, like the new electric vehicle manufacturers launching to compete with Tesla, the new charging technology developers and others, will have Newsom to thank for the sudden boost in their valuations.
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Tesla says its battery innovations will deliver its goal of a $25,000 mass market electric car
Tesla held its Battery Day event on Tuesday to discuss a variety of innovations it has developed and is pursuing in battery technology for its vehicles. At the event, Tesla CEO Elon Musk and SVP of Powertrain and Energy Engineering Drew Baglino detailed new anode and cathode technology it’s working on, as well as materials science, in-house mining operations and manufacturing improvements it’s developing to make more more affordable, sustainable batteries — and they said that taken together, these should allow them to make an electric vehicle available to consumers at the $25,000 price point.
“We’re confident we can make a very, very compelling $25,000 electric vehicle, that’s also fully autonomous,” Musk said. “And when you think about the $25,000 price point you have to consider how much less expensive it is to own an electric vehicle. So actually, it becomes even more affordable at that $25,000 price point.”
This isn’t the first time that Musk has talked about the $25,000 price point for a Tesla car: Two years ago, in August 2018, he said that he believed the company would be able to reach that target price point in roughly three years. Two years on, it seems like the goal posts have been pushed out again — fairly standard for an Elon-generated timeline — since Musk and Baglino acknowledged that it would be another two or three years before the company could realize the technologies it presented in sufficient quantities to be produced effectively at scale.
Tesla detailed a new, tabless battery cell design that would help it achieve its goal of reaching 10 to 20 terawatts of global battery production capacity per year. The design offers five times the energy density of the existing cells it uses, as well as six times the power and an overall 16% improvement in range for vehicles in which it’s used.
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Despite pandemic setbacks, the clean energy future is underway
Roger Duncan
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Roger Duncan is a former Research Fellow at the Energy Institute at the University of Texas at Austin and the former General Manager of Austin Energy. He is the co-author of the upcoming book, “The Future of Buildings, Transportation and Power.”
The economic lockdown resulting from the coronavirus pandemic has had an immediate negative impact on renewable energy projects and electric vehicles sales, but the sustainable trends are still in place and may even be strengthened over the longer term.
For the first time in four decades, global installation of solar, wind and other renewable energy will be less than the previous year, according to the International Energy Agency, which is projecting a 13% reduction in installations in 2020 compared to 2019. Woods Mackenzie projects an 18% reduction for global solar installations in 2020. Morgan Stanley is projecting declines in U.S. solar PV installations from 48% in second quarter to 17% in the fourth quarter of 2020.
This is due to a combination of construction delays, supply chain disruptions and a capital crunch.
Installation of rooftop solar has been hit particularly hard. Access to homes and businesses was generally halted in March 2020 for several months. Installers have indicated that as much as half the workforce had to be furloughed. The supply chain was also disrupted as PV manufacturing in China was temporarily suspended. Installations and the supply chain will resume, and most contracts are still in place, but the robust projected growth in rooftop PV for 2020 will not be met, and it may take more than a year to catch up. Also, some businesses that planned installations may have higher priorities for cash and investment now as they reopen. Many of the small businesses planning solar installations may not return at all.
On the other hand, utility scale electricity generation from renewable energy continues to grow and take market share. In the first part of this year, renewable energy has produced more electricity than coal for the first time since the late 19th century, when hydropower started the power industry. Wind and solar are the cheapest alternatives for new electric generation in the U.S. The pandemic and collapse in oil prices will not change that. The closure of coal plants has been accelerating this year, and wind and solar will continue to be competitive with gas.
Furthermore, most solar and wind farms were already financed and construction underway in rural areas not affected by the lockdown. About 30 GW of new solar capacity have already been contracted, and as long as interest rates remain low, financing should not be a problem. In fact, many solar and wind projects in the U.S and China are rushing to completion this year to qualify for government incentives.
But supply chains for utility scale renewables were still disrupted. Solar panel manufacturing in China was halted during the first quarter and has now reopened, but facing reduced orders. At one point, 18 wind turbine manufacturing facilities in Spain and Italy were stopped while social distancing and sanitation measures were put in place. Mining operations in Africa and other countries were also temporarily halted and now face reduced demand.
The replacement of oil and gas electricity generation with renewables in developing countries is not going to seem as attractive as a few years ago. Emerging economies need to expand electricity as cheaply as possible, which means coal, gas and even diesel plants. New fossil fuel plants in developing nations could lock in carbon emissions for years.
Electric vehicle sales globally have also been severely impacted. The transition to electric vehicles takes place as people purchase new vehicles. The price of oil has collapsed, used-car prices are dropping and unemployment has soared to levels not seen since the Great Depression. Cheap gas, cheap cars and high unemployment will dramatically lower the expectations for multipassenger EV sales in 2020. Wood Mackenzie has projected a 43% global decline in EV sales in 2020 from 2019. Furthermore, many new electric models from the automakers are not expected until 2021.
However, the long-term transition to EVs will continue and may even accelerate. It still costs less to drive a mile on electricity compared to gasoline, and when the upfront cost of electric vehicles becomes competitive with internal combustion vehicles in a few years, the market should quickly move to EVs. Now that the battery range is adequate for the average driver, the last barrier seems to be the availability of fast charging stations between cities.
Before the collapse in oil demand this year, the oil majors were expecting peak oil demand to occur sometime during the 2040s. Now peak oil demand is expected earlier, perhaps in the mid-2020s. Some even think that 2019 might turn out to be the highest level of oil consumption historically. At any rate, it seems that it will be at least a few years until the 2019 levels are reached again, if ever.
However, the recent collapse in oil prices means the oil and gas industry will be able to supply fuel at very competitive prices for decades. This will at least make it more difficult for electric vehicles to take market share in the short term, and very difficult for alternative liquid fuels to be competitive. For biofuels and synthetic fuels, it seems to be a repeat of earlier decades when cheap oil crushed those industries. Replacing gas and diesel-powered cars is certainly going to be unattractive in the impoverished economies of developing nations.
But there are also bright spots for clean transportation alternatives emerging. Electric bicycles, for example, are a hot item. As people look for alternatives to mass transit and want something to move outdoors in the fresh air, electric-assisted bikes are a great solution and are no longer looked down upon as a vehicle for older (or lazy) cyclists.
Telecommuting struggled for years to take hold, but the pandemic seems to have finally changed that. The recent national lockdown has spurred many large businesses to set up their employees to work from home. They have found that it works fairly well, and many will not return to packed downtown offices.
Several experts have cited the potential for cleaner energy alternatives because the public is seeing cleaner air and the environmental benefits of a 30% reduction in daily oil consumption. Some consumer surveys have indicated a greater interest in electric vehicles.
There is certainly the hope that we will take the opportunity to revive the economy with cleaner technologies than before the lockdown. However, the reality is that workers and businesses need to start up again with the infrastructure they have, and investment in cleaner technology requires capital. Since many business operations are struggling to find cash and loans to just remain open, new clean technology may be delayed.
Yet the major infrastructure changes for a sustainable future are well underway. Solar and wind are rapidly replacing fossil fuels for electricity. Automakers and governments are committed to electrification of the transportation sector. The pandemic may be a near-term obstacle, but the transition to a sustainable economy is just delayed and may even be accelerated in the coming years.
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Volkswagen launches home EV charging system sales ahead of ID.3 vehicle deliveries
Volkswagen has started to sell a home-charging device as the automaker prepares to bring its new ID family of electric vehicles to market.
The ID.3 is the first electric vehicle under the ID label and will only be sold in Europe. Customers who made reservations for the launch edition, known as ID.3 1st, will be able to order their vehicle starting June 17. Volkswagen said this week that the deliveries for the ID.3 1st will begin in September.
And that means that, at least for now, the home-charging device known as Wallbox will only be available for sale in eight countries in Europe. Volkswagen is making three versions of the Wallbox that will range in price between €399 and €849 ($448 to $953). Those prices don’t include the cost of installation.
All of the versions will have a charging capacity of up to 11 kilowatts, permanently mounted Type 2 charging cable and integrated DC residual current protection. For now, just the base model is available, according to VW.
The two premium models, the ID. Charger Connect and ID. Charger Pro, will be available later this year. These models come with additional software that allows for the kind of interaction and analytics that Tesla owners are more familiar with. The ID. Charger Connect will allow customers to link their smartphone to control charging processes. The ID. Charger Pro has that connectivity feature plus an integrated electricity meter designed for commercial uses. The integrated meter can be used to bill electricity costs for company car drivers, according to VW.
Image Credits: Volkswagen
The ID.3 is the first model in the company’s new all-electric ID brand and the beginning of its ambitious plan to sell 1 million electric vehicles annually by 2025. The ID.3 will only be sold in Europe. Other models under the ID brand will be sold in North America.
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GM reveals an EV for (almost) every purse and purpose
Ed Niedermeyer is an author, columnist and co-host of The Autonocast. His book, Ludicrous: The Unvarnished Story of Tesla Motors, was released in August 2019.
More posts by this contributor
General Motors’ EV day didn’t just mark the launch of a new flexible battery architecture and an ambitious plan to deploy this underlying foundation across all of the automaker’s brands, including Buick, Cadillac, Chevrolet and GMC.
It was a resurrection, albeit with a modern twist.
The company’s announcement this week gave new life to its brand ladder — a portfolio that ranges from the heights of luxury to the most basic utility — and tipped its hand about how it will bring EVs “across the chasm.”
This game plan isn’t new. GM is bringing back a strategy that once defined its success and reshaped America’s automotive landscape. This strategy worked for GM until complacency crept in and the brand ladder collapsed. This time, GM is aiming to avoid these snares.
History lesson
Henry Ford’s moving assembly line birthed the early auto industry, but as American prosperity grew in the 1910s-20s, it was General Motors that laid the foundations of the modern car market. Under then-chairman Alfred Sloan, the amalgamation of once-independent automakers united under a strategy that would, in his words, create “a car for every purse and purpose.” From a value Chevrolet to a sporty Pontiac, from a discreetly plush Buick to a majestic Cadillac, and with countless brands in between, what became known as Sloanism birthed the idea that there should be a car to reflect every American’s self-image and social status.
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GM, LG Chem to invest $2.3 billion in EV battery joint venture
GM chairman and CEO Mary Barra said Thursday morning that the automaker is forming a joint venture with LG Chem to mass produce battery cells for its electric vehicles, a portfolio that will include a new battery-electric truck coming in the fall of 2021.
The two companies said they will invest up to a total of $2.3 billion into the new joint venture and will establish a battery cell assembly plant on a greenfield manufacturing site in the Lordstown area of Northeast Ohio that will create more than 1,100 new jobs. Groundbreaking is expected to take place in mid-2020.
GM has used LG Chem as a lithium-ion and electronics supplier for at least a decade. The companies began working together in 2009. The relationship deepened as GM developed and then launched the Chevy Bolt EV.
However, the joint venture marks a shift that Barra said in a call with reporters Thursday morning would accelerate the automaker’s ability to win in the electric vehicle space.
“The joint venture signing today is more than just a collaboration, it’s the beginning of a great journey,” LG Chem CEO and vice chairman Hak-Cheol Shin said during a Thursday morning call with reporters.
The venture is significant for both companies. The new plant will supply GM’s next generation of electric vehicles. Barra said the company is still on track to introduce 20 electric vehicles globally by 2023.
If GM expects to build a profitable EV business it will have to do more than just bring these vehicles to market. The next generation of vehicles will have a new battery electric vehicle architecture, will be desirable, profitable with the right range and affordable, Barra noted during the call. “It’s got to be affordable to drive the volume and really drive EVs in the marketplace, and customers are looking for affordability. And so that is the journey we are on and we think working with LG is will accelerate that path.”
Meanwhile, the deal gives a boost to LG’s battery business, which Shin said is expected to grow to $25 billion by 2024.
The battery plant will have an annual capacity of more than 30 gigawatt hours with flexibility for expansion, according to GM. If successful, the annual capacity at the plant would be close to the same output of Tesla’s massive factory near Reno, Nev. Tesla and Panasonic are partners in the massive factory that produces electric motors and battery packs. Panasonic makes the cells, which Tesla then uses to make battery packs for its electric vehicles. Tesla hasn’t shared capacity numbers recently, but previously stated plans for it to have a 35 gigawatt-hour capacity.
The location of the battery venture could build goodwill in Lordstown, a town that suffered from sweeping layoffs after GM decided to stop producing the Chevrolet Cruze at its assembly plant there. GM “unallocated” its Lordstown plant, a designation that meant the automaker would shutter the plant. The decision resulted in the elimination of some 1,200 jobs.
Lordstown Motors Corp., a battery-electric transportation technology company, acquired the old GM plant last month.
The investment comes in addition to GM’s $28 million investment in its Warren, Mich. battery lab announced late last year.
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