Pulse Check: What’s Happening in the EV Market?
Given AtomTech’s history in the EV market, we have witnessed first-hand the ebb and flow of the market. There are many factors that have and continue to impact its performance, as well as conflicting narratives. But despite all of this, there is one thing for sure. EVs are still here and are still of interest. Considering it’s been a while since we provided a check-in on the EV market, we have rounded up some of the latest news capturing its activity.
EV Pricing and Accessibility
One of the biggest barriers standing in the way of greater EV adoption is upfront cost. However, that is beginning to change. As The New York Times recently reported, with more competition, decreased material costs, enhanced manufacturing, and initiatives such as tax credits, prices for EVs are coming down. On top of that, battery technology is improving. According to Jack Ewing, author of the article, “The number of fast chargers, which can top up a battery in less than half an hour, grew 36% from April 2023 to this past April.”
As Randy Parker, CEO of Hyundai Motor America, told Ewing, “The EV market has hit an inflection point…The early adopters have come. They’ve got their cars. Now you’re starting to see us transition to a mass market.”
Companies Continuing to Invest in EVs
Leveraging the expected mass market transition, Hyundai is set to begin producing EVs at a new factory based in Georgia by the end of the year. In fact, Hyundai, in addition to Kia, was responsible for 11.2% of the EVs sold in the US through May.
Volkswagen also continues to play a role in the EV market. According to Steve Hanley at CleanTechnica, “Thomas Schäfer, the CEO of the Volkswagen brand, said the company plans to launch its next-generation electric cars on the SSP chassis in 2028.”
Alongside established companies, funding for the EV startup market is also still rolling. In examining the field, Crunchbase News concluded that a majority of funding rounds are going toward companies focused on EV charging networks.
EV Challenges
While there is obvious progression still happening in the EV market, there are obvious challenges that persist too. Although there is an effort to increase battery production here, there is an ongoing reliance on Chinese-produced lithium-ion batteries, which is vulnerable to price shifts. Fears around demand have also influenced a portion of the automotive industry to delay transitions to more EVs.
However, analysts project that sales will pick up with the introduction of new and expanding charging options.
Sources:
● “Electric cars are suddenly becoming affordable” - Jack Ewing, The New York Times
https://www.sltrib.com/news/nation-world/2024/06/09/electric-cars-are-suddenly/
● “Hyundai and Kia are closing the gap with Tesla as US EV market share hits double-digits” - Peter Johnson, Electrek
https://electrek.co/2024/06/10/hyundai-kia-close-gap-tesla-us-ev-share-hits-11/
● “First Volkswagen Electric Cars Built On Scalable Systems Platform Will Arrive In 2028” - Steve Hanley, Clean Technica
https://cleantechnica.com/2024/06/10/first-volkswagen-electric-cars-built-on-scalable-systems-platform-will-arrive-in-2028/
● “EV Charging Is Still A Hot Niche For Startup Funding” - Joanna Glasner, Crunchbase News
https://news.crunchbase.com/transportation/venture-funding-ev-charging-startups/