AGORACOM Small-cap Investor Relations Blog

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• According to research by BloombergNEF, European automakers and governments will move toward helping curb global warming with stricter carbon emissions regulations, which could force an electric-vehicle revolution.

In the United States, electric vehicles are primarily being purchased by consumers that want to take action on their own. Fuel is cheap, the country doesn’t have a real climate change plan, and large vehicles like pickups are king. All of this means that there’s little incentive, beyond the $7,500 federal tax credit, to purchase an EV. That, though, isn’t the case in other countries like China and, soon to be Europe.

EV Revolution Coming This Year

According to a report by Bloomberg and a forecast from BloombergNEF, Europe will see an electric revolution in 2020. The outlet states that the country’s government will soon look to cut carbon emissions from vehicles as part of a plan to curb global warming. This, in turn, will force automakers to introduce electric vehicles.

Bloomberg claims that sales of electric cars are set to increase to 2.5 million units in 2020. That figure represents an increase of 20 percent from 2019.

Just like this year, China will continue to lead the way forward for sales. But the country recently decided to reduce subsidies for EV owners, which could help Europe gain a larger piece of the market. The outlet’s forecasting claims that Volkswagen’s push to become an electric-vehicle force will boost the number of electrified vehicles in Europe. In total, the outlet expects 800,000 electric cars to be sold in Europe in 2020.

“The long-term future is really bright, but in the short term we’re expecting growth to be relatively slow,” said Colin McKerracher, an analyst at BloombergNEF. “You’re still in the middle of this transition, from a market driven by direct subsidies toward one driven by a combination of real consumer demand and other big policy mechanisms.”

Better Prices, More Infrastructure Coming

Another important aspect of electric vehicles that will help sales increase in Europe are decreasing lithium-ion battery prices. The outlet states that prices per kilowatt-hour will hit roughly $135 – approximately 13 percent lower than in 2019. With the increase of battery production, better battery designs, and more sales, battery prices are expected to tumble.

All of these things mean that more chargers will be needed. Luckily, public chargers are expected to rise to 1.2 million, up from 880,000 last year. The increase in chargers will come in part from governments and energy companies looking to expand infrastructure to support the increase in demand for electric cars.

Another interesting trend to look at in 2020 include other forms of electrified transportation. A few companies, even automakers, showcased flying electric cars at CES. While it’s unlikely that one would come out in 2020, it’s likely something that more companies will pursue this year. Other forms of transportation, including boats could go electric in 2020, too.

SOURCE: https://www.futurecar.com/3749/EV-Buyers-Can-Expect-Cheaper-Batteries-and-More-Chargers-in-2020

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While many people consider Detroit home of the automobile, the southeast region of the U.S. is becoming a hotbed for auto manufacturing. Automakers BMW, Mercedes Benz, Volvo, Toyota, Honda and Hyundai built assembly plants in the region to manufacture vehicles for the U.S. and global markets. 

Most recently, Toyota and Mazda recently announced they will be opening a new $1.6 billion plant in Huntsville, Alabama, adding around 4,000 new jobs to the region. Now Volvo becomes the latest automaker to expand its U.S. manufacturing with a new electric vehicle battery plant.

The automaker announced plans to build an electric battery plant at its assembly plant in Ridgeville, South Carolina to support the launch of electrified Volvo models for the U.S. market. Construction of the battery assembly plant will be completed by the end of 2021, a Volvo spokeswoman said to Automotive News.

The battery production plant is part of a previously announced $600 million project that is already underway at Volvo’s plant in Ridgeville, S.C., which includes adding a second production line and Volvo Car University. The 2.3 million sq. ft. facility includes a body shop, paint shop, final assembly, a vehicle processing center and an office building.

The Ridgeville plant is Volvo’s first in the U.S. Construction began in 2015. 

At that facility, employees will assemble and test the lithium ion battery packs that will power the electric XC90. By assembling the packs on at the plant, Volvo hopes to reduce shipping costs involved in transporting the heavy batteries.

Dallas Bolen, a manager with Volvo’s product launch group, told local media outlet the Post and Courier that local battery production would be more cost-effective than building batteries off-site then having to transport them to the factory.

The Ridgeville plant is currently the production home of the Volvo S60 sedan. The U.S.-built S60s are exported around the world through the Port of Charleston, one of the busiest ports in the U.S.

Volvo’s next EV will be the XC40 Recharge. It will arrive at U.S. dealers later this year.

The South Carolina plant will become the global production center for the third-generation XC90 flagship crossover. Volvo plans to build the next generation XC90 sport utility vehicle in 2022, along with a fully-electric version. The plant has the capacity to build 150,000 vehicles annually.

Volvo has not said how much of the XC90’s production at the $1.1 billion factory will be devoted to the battery-electric variant. 

That next-generation XC90 will be built on the next version of Volvo’s Scalable Product Architecture platform, referred to as SPA2. The new electric vehicle architecture is designed to make it easy to add new technology, such as microprocessors, sensors and camera technology.

Volvo declined to release its production capacity for the battery assembly plant or say how many jobs it will create. Overall, the planned XC90 production line is expected to create about 1,000 jobs.

The XC90 would be Volvo’s third battery-powered model following the electric version of the popular XC40 compact crossover, was unveiled in October. 

The electric XC40 is expected to arrive in U.S. dealerships in the fourth quarter of 2020. The crossover will be competitively priced under $48,000, after the $7,500 federal tax credit, Volvo said.

The new battery plant will support Volvo’s push to electrify around half of its lineup. The automaker aims for EVs to account for half of its global sales by 2025. Over the next five years, Volvo expects to launch a fully electric vehicle every year.

“A Volvo built in 2025 will leave a carbon footprint that is 40 percent lower than a car that we build today,” Volvo CEO Hakan Samuelsson said during a press event in October. “We made safety part of the brand. We should do the same with sustainability.”

In November 2019, Volvo Cars announced it will be the first carmaker to implement global traceability of cobalt used in its batteries by applying blockchain technology, ensuring that customers can drive battery-powered Volvos knowing the raw materials for the batteries has been responsibly sourced.

SOURCE: https://www.futurecar.com/3731/Volvo-to-Build-an-Electric-Vehicle-Battery-Plant-in-the-U-S-

Building codes are a labyrinth of national, state, and municipal rules. While California since 2015 has required new homes to have the necessary conduit and service-panel capacity for EV-charging, guidelines in the rest of the country are spotty. That could soon be fixed because the International Code Council (ICC) – which provides widely adopted best practices and standards for construction ­– approved putting EV-readiness in its latest guidelines.

The new guidelines equate to a ready-made, consistent national approach for EV-charging capabilities for new homes and apartment buildings.

While all states follow the principles outlined by the ICC’s building codes, the provisions are voluntary until incorporated into state or local laws. Quartz reports that about half of US states are expected to adopt the ICC’s new EV-readiness requirements.

Forward-looking municipalities – notably Atlanta, Denver, Palo Alto, and Seattle ­– already have EV-friendly construction codes in place.

Estimates for the cost of compliance for a newly constructed home vary widely from less than $100 to nearly $1,000.

A 2016 study pegged the price in San Francisco to be $920 (for a building with 10 parking spaces). But that’s significantly less than adding charging capabilities after the fact. The same research indicates that retrofitting sites by expanding electrical panels and adding wiring, could cost as much as $3,550.

The ICC explains, “The proposed code [now adopted] will allow current and future EV-owners to avoid the cost of electrical equipment upgrades, demolition, and permitting for future retrofits.”

Here are the new definitions:

• ELECTRIC VEHICLE SUPPLY EQUIPMENT (EVSE). The conductors, including the ungrounded, grounded, and equipment grounding conductors, and the Electric Vehicle connectors, attachment plugs, and all other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the Electric Vehicle.
• EV CAPABLE SPACE. Electrical panel capacity and space to support a minimum 40-ampere, 208/240-volt branch circuit for each EV parking space, and the installation of raceways, both underground and surface mounted, to support the EVSE.
• EV READY SPACE. A designated parking space which is provided with one 40-ampere, 208/240-volt dedicated branch circuit for EVSE servicing Electric Vehicles. The circuit shall terminate in a suitable termination point such as a receptacle, junction box, or an EVSE, and be located in close proximity to the proposed location of the EV parking spaces.

While builders will make sure that there’s access to a 240-volt supply, it’s up to owners or tenants to buy and install the charging equipment.

The ICC says there will need to be 9.6 million new EV charging ports by 2030, with nearly 80% located in single and multi-family residential buildings. As any EV driver knows, home is where the vast majority of electric-car charging takes place.

Source: International Code Council calls for all new homes to be ready for 240-volt EV charging