The World Car Battle: Speculative Race for Charging Stations

https://www.theinternationalism.org/2021/08/speculative-race-for-charging-stations.html

by abbassi • 5 years ago

1 1 5 years ago

abbassi• 5 years ago

If at the beginning of the 21st century electrification had technological limits in batteries, both in terms of cost and range, these are now partly overcome, because electric cars have a range of 240-450 km, more than enough for 95% of journeys of less than 50 km. The major obstacle remains the construction of a network of charging stations and their integration with the electricity grid. The race between China, Europe, and USA

UBS Evidence Lab, a team of UBS bank experts working in 55 specialised labs to provide data on investment decisions, predicts that cost parity between electric and internal combustion cars will be achieved in 2024 [Inside EVs, October 20th 2020]. By then, the development of car electrification will be self-sustaining without government subsidies.

Bloomberg New Energy Finance (BNEF), in its report " Electric Vehicle Outlook 2020", estimates that by 2022 carmakers will have 500 different models of electric cars available and that sales will rise from 2.1 million in 2019 to 26 million in 2030. The share of electric cars in total car sales will rise from 2.7% in 2020 to 28% 1n 2030. For the International Energy Agency (IEA), in the " Stated Policies" scenario, which considers evolution of the situation according to the policies already in place, the circulation of electric cars worldwide will reach 145 million by 2030, 7% of total circulation, and sales will be 35% of the total in China, 35% in Europe and 15% in the USA [LEA, Global EV Outlook 2021, April 2021].

According to these forecasts, China is leading the process of automotive electrification, the EU is racing hard to catch up, and the USA is lagging behind, although the Biden’s administration is attempting to make up lost ground with its electrification plan. The charging network

In 2019, there were 6.5 million private and 800,000 public charging points (aka charging stations) worldwide [IEA, Global EV Outlook 2020, June 2020]. Private charging points are those owned by households, while public charging points are owned by companies and are freely accessible to all motorists, just like any petrol station.

Another BNEF analysis [Bloomberg, March 23rd, 2021] shows China’s dynamism in building an infrastructure network: its 300,000 available public columns in 2018 have risen to 516,000 in 2019 and 800,000 in 2020.

According to McKinsey January 5th], by 2030 the USA will have between IT and 30 million private and 400,000 to 600,000 public charging points, the EU together with the UK between 28 and 35 million private and 500,000 to 900,000 public charging points, and China between 15 and 17 million private and 1.5 and 2.2 million public charging points. This large difference between the public and private charging points in China, the USA and Europe lies in the different distribution of the population in the territories.

In the USA and Europe, as people move to the suburbs, half to twothirds of the population now live in single dwellings with garages. This is why McKinsey predicts that by 2030 there will be twice as many private charging points as in China, where urbanisation is leading to a concentration of the population in cities with large apartment blocks and therefore twice as many public charging points. According to the McKinsey report, by 2030 there could be 54 to 82 million private and 2.4 to 3.7 million public charging stations in the world. A worldwide market has opened up, triggering a race to invest in this sector, and with it speculation.

The World Car Battle: Speculative Race for Charging Stations

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