When it comes to mobility, one thing seems certain: electric vehicles will play a major role. Over 30 countries passed 5% Electric Vehicle (EV) adoption in 2024. If that does not seem significant, Bloomberg predicts this is the innovative technology threshold that historically signals an impending mass adoption. In the U.S., electric vehicles comprise 8% of new auto sales at around 300,000 cars.
With concerns about climate change and air pollution increasing, governments around the world are pushing for a shift towards cleaner transportation options. And with advancements in technology and decreasing costs, electric vehicles are becoming more accessible and practical for the average consumer. “We looked at examples and use cases where electrification is playing a role: Aircraft and hovercraft mobility, the mobile machine market, delivery and logistics trucks, e-bikes and scooters, and even the defense market are all being electrified,” said Michael Brooks, Phoenix Contact Market Segment Manager of eMobility.
However, the shift toward electrification is not without challenges. Electrification infrastructure, EV capabilities and consumer adoption and appropriate policy remain key hurdles to seeing the benefits of a more sustainable and electric future.
EV and Hydrogen Trends
Lithium-ion batteries are one of the most used battery technologies in EVs, offering high energy density and allowing for longer driving ranges. For consumers, prices continue to fall for lithium-ion battery packs, making EV production cheaper. However, lithium-ion batteries rely on a complicated supply chain. For years, China dominated the market in securing raw materials and extraction, creating an oversupply in batteries.
But a recent Bloomberg study shows Canada holds the cards globally for a long-term and healthy lithium-ion supply chain due to its integration with the U.S. automotive supply chain. Yet, lithium-ion is not the only kid on the block when it comes to sustainable transportation.
“Industry may consider exploring hydrogen and fuel cells as an alternative to electrification,” said Mitchell Zajac, Butzel Shareholder and Automotive Specialist.
Read the Integr8 Playbook, "Wired for Change: Electrification and the Future of Mobility" in full here.
