How EV Makers Can Reduce Costs by Building Smaller Batteries
Range has long been a defining factor for electric vehicles (EVs), but the focus is shifting. While range is still important, factors such as battery size, efficiency, charging network reliability, and charging speed are becoming equally significant. EV drivers have come to realize that running out of charge is as likely as running out of fuel in a petrol car, albeit with more complexity in avoiding it.
The Relationship Between Range and Cost
Recently, executives from Mazda, Toyota, Polestar, and Nissan have hinted that reducing the size of the battery and range while improving charging speed is the fastest way to lower the cost of EVs. The battery accounts for a significant portion (40-60%) of the car’s cost, making it a prime target for cost reduction.
Moreover, using smaller batteries also has environmental benefits, as it reduces the consumption of natural resources. Toyota has been advocating for hybrids with small batteries to improve real-world efficiency, and the same principle applies to EVs.
The Case for Smaller Batteries
Mazda’s CFO, Jeff Guyton, argues that smaller batteries allow more people to benefit from the precious resources within them. He suggests that a 30-something kWh battery can provide a usable daily driving range without the need for a 100kWh battery.
Polestar’s CEO, Thomas Ingenlath, believes that faster charging can lead to smaller batteries and lower costs. His company has invested in StoreDot, a company that has developed extreme fast charging technology capable of achieving 100 miles of range in just five minutes. According to Ingenlath, smaller batteries result in overall efficiency improvements and weight reduction.
How Much Range is Necessary?
The question of how much range is necessary remains open. While a larger range often translates to a larger battery and higher cost, many consumers still consider range the ultimate selling point for EVs. Premium models like Lucid, BMW, and Mercedes have already surpassed the 100kWh barrier, but the availability of jumbo battery packs in crossover models like the Peugeot e-3008 indicates that range is still highly valued.
Nissan takes a different approach to range, focusing on journey lengths and times rather than a specific battery size. According to Cli Lyons, Nissan’s vice president for product and services planning, understanding customer needs and usage is crucial. Offering solutions that fit into customers’ lifestyles without requiring them to change their habits is key.
The Role of Charging Infrastructure
Charging infrastructure plays a vital role in determining battery size and vehicle cost. Currently, larger batteries compensate for the lack of charging infrastructure and consumer confidence in charging. However, as the charging network improves and customer confidence grows, there will be greater acceptance of smaller range EVs, resulting in lower costs.
Shunsuke Shigemoto, Nissan’s vice president of ePowertrain technology, research, and advanced engineering, believes that as the charging network becomes more reliable, customers will feel comfortable with smaller ranges. However, he doesn’t foresee a future with 200kWh batteries.
Conclusion
While range remains an important consideration for EVs, factors such as battery size, charging speed, and efficiency are gaining prominence. EV makers are realizing that reducing battery size and improving charging infrastructure can significantly lower costs. As the industry progresses, finding the right balance between range and cost will be crucial for widespread EV adoption.