Multiple large-scale trends in the automotive industry are converging to drive vehicle electrification and encourage its adoption among consumers. The intersection of new environmental initiatives, global economic changes and rapid technological advances have batteries and electric motors poised to eventually supersede the internal combustion engine as the dominant form of vehicle propulsion (Figure 1).

EV sales are now expected to overtake internal combustion vehicles in the 2030s and to continue accelerating in the years to come. The consultancy firm Ernst & Young LLP expects internal combustion and other non-electric vehicles to account for under one percent of global vehicle sales by 2045. The electric vehicle (EV) will transform all types of mobility, from cars, busses and trucks to trains and even aircraft.

However, ensuring the mainstream success of EVs requires further effort from all members of the automotive and transportation industry. Additional technological progress is required to improve the driving range of EVs and make them more competitive with the internal combustion vehicle. This includes battery capacity, thermal management and the aerodynamic efficiency of the vehicle body. Outside of the vehicle, EV charging infrastructure remains lacking in many regions; in particular, fast charging stations. EV manufacturers also face challenges during the production, maintenance and retirement of EVs. EV batteries and high-voltage powertrain components require special consideration during vehicle service, accident response and towing and recycling or disposal.

Automotive and transportation companies are faced with a multi-threaded challenge. They must develop advanced technologies while managing differing regulations and supporting the expansion of charging infrastructure around the world. Digitalization can provide the foundation for the development of advanced vehicle technologies and collaboration across the industry.

Challenges to Overcome

First, many automakers have encountered manufacturing-related challenges while developing and scaling new EV platforms. Manufacturing concepts that have been in use for over a hundred years at many companies are not fit for the needs of EV platforms. For instance, the increased modularity of EV platforms and the growing demand for enhanced vehicle personalization have proven to be incompatible with existing manufacturing facilities.

Current manufacturing processes must also be adapted to ensure appropriate handling of the high-voltage and sometimes toxic materials that make up EV battery packs. These methods or considerations developed for the safe handling of battery packs during production will also need to be extended or adapted to the aftersales service environment, to first responders managing accidents involving EVs and to inform the appropriate process for recycling or disposing of batteries after their service lives have ended.

The next major hurdle for EV manufacturers is the reduction of the long charging times common for contemporary EVs. As the expected drive range of EVs improves, the relatively slow process of ‘refueling’ the battery is becoming one of the most troublesome competitive disadvantages of EVs against internal combustion vehicles. Rather than mere minutes for a fill-up, fully charging an EV can take up to several hours depending on the vehicle, charging station, electricity demand and other factors (figure 2).

While early EV adopters have found creative ways to pass the time while recharging, mainstream consumers will not be motivated to switch until charging times are brought within shouting distance of the fuel stops with which they are accustomed. It is therefore imperative for EV manufacturers to reduce charging times to improve the competitiveness of their vehicles in the market.

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