The evolution of electric vehicles has been nothing short of revolutionary. They are picking up momentum and charging towards a future as dynamic as the technology itself. With a compound annual growth rate hovering around 10%, the industry is anticipated to reach $623.3B worldwide and $906.7B by 2028. Hitting closer to home, in Portland, Oregon alone, 1 in every seven vehicles registered in 2023 was electric.
Overall, the future of electric vehicles is promising and loaded with innovations. But what does the road ahead look like for electric vehicles, especially in the commercial sector where energy efficiency demand is rising?
Let’s dive in.
EV sales will continue rising in 2024
Despite a temporary dip in 2023, the commercial energy solutions sector is witnessing robust growth in the EV market, with sales predicted to surge in 2024. Against all odds, the EV industry continues to expand its market share. Projections indicate a significant increase, with nearly 1.9 million EV sales in the U.S. alone for 2024. This growth trajectory points to an optimistic future for EV, propelled by advancements in business energy efficiency and the rising popularity of electric vehicle charger installations.
Even with a conservative estimate, this is still an anticipated ~22% jump from the previous year. This momentum of EV sales is set to carry beyond 2024, with China leading the charge, followed by markets in Europe and North America.
Declining prices will make the EV market more affordable
Electric vehicles in 2024 are becoming more attainable, especially after the federal EV tax credit is applied. With an array of options under $40,000 now, EVs will become more appealing to a wider consumer base. A key factor in the future of EV is the anticipated dip in battery prices, which currently account for about 40% of an EV's cost. In short, these reductions mean affordability, and affordability means amplified sales.
Tax incentives apply to fewer models
Piggybacking tax credits, something to be mindful of in 2024 and the foreseeable future is that government tax incentives for EVs have shifted. Yes, you can still apply for a federal tax of up to $7,500, but the list of qualified vehicles has become shorter. Some new requirements include an MSRP of less than $80,000 for SUVs or less than $55,000 for Sedans. In addition, a portion of the EV battery must be produced or assembled in North America to qualify for the first section of the tax credit. You can scan through the Treasury Department list to see if a specific EV is eligible. For some quick guidance:
▪ EV's Eligible for $7,500 Tax Credit in 2024
Chevrolet Bolt and Bolt EUV: Eligible Models: 2022 and 2023. Criteria: Priced at or below $55,000 (Note: The Bolt was discontinued for the 2024 model year).
Chrysler Pacifica Hybrid PHEV: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Ford F-150 Lightning: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Tesla Model 3 Performance: Eligible Models: 2023 and 2024. Criteria: Priced at or below $55,000.
Tesla Model X Long Range: Eligible Models: 2023 and 2024. Criteria: Priced at or below $80,000.
Tesla Model Y All-Wheel Drive: Eligible Models: 2023 and 2024 (Performance and Rear-Wheel Drive) Criteria: Priced at or below $80,000 (Note: Rear-Wheel Drive available for the 2024 model year only).
▪ EV’s Eligible for $3,750 Tax Credit in 2024
Ford Escape Plug-In Hybrid: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Jeep Grand Cherokee 4xe Plug-In Hybrid: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Jeep Wrangler 4xe Plug-In Hybrid SUV: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Lincoln Corsair Grand Touring Plug-In Hybrid: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Rivian R1S and R1T: Eligible Models: 2022 to 2024. Criteria: Priced at or below $80,000.
Major advancements in EV battery technology
One of the cornerstones of progress with commercial energy solutions is the rapid advancement in EV battery chemistry. Advanced EV battery technology not only extends the driving range of vehicles but also significantly reduces aspects like charging time. A promising example of this progress is a recent report highlighting a 32% increase in energy density for the latest lithium-ion batteries. This means a longer driving range for electric vehicles and the potential to set new benchmarks for recharging speed and battery lifespan.
Naturally, the future of EV battery chemistry will make electric vehicles much more appealing to the mass market. Additionally, it will become a new stepping stone towards a more environmentally conscious future. Other key developments include:
▪ Solid-State Batteries
Solid-state batteries mark a significant leap forward in EV technology. With a solid electrolyte supplanting its liquid counterpart, these batteries offer a monumental increase in safety, a higher energy density, and remarkably faster charging times. Corporate giants such as Toyota and breakthrough companies like QuantumScape are all pioneering this research and edging it closer to widespread adoption.
▪ Silicon Anode Batteries
With inherently higher energy density than traditional graphite, silicon-anode batteries have the potential to significantly amplify the range of EVs, offering a tangible advancement in business energy efficiency. Startups like Sila Nanotechnologies are channeling efforts to bring this game-changing technology to commercialization.
Key Advantages:
⁃ Increased Energy Storage: Store more energy in a smaller space.
⁃ Range Enhancement: Promises longer distances driven on a single charge.
▪ Recycling and Second-Use Batteries
With EV adoption on the rise, there's an escalating need for sustainable end-of-life battery solutions. In fact, 2.3M electric vehicles were sold in the first quarter of 2023 alone, a 25% annual increase signaling the demand for responsible recycling. To date, Tesla and Redwood Materials are seeking advanced methods for efficient battery recycling that could mitigate environmental impacts. These ambitions aim to make electric vehicles renewable and position EV batteries as an asset within the circular economy.
▪ Wireless Charging
According to a report from McKinsey & Company, the adoption of electric vehicle charger installations, including wireless solutions, is expected to grow rapidly. The report forecasts that the United States could see up to 11 million charge points by 2030. This represents a massive leap from the approximately 2 million available in 2021. This innovation would eliminate the hassle of wired connections for EV owners and a huge competitive edge for businesses that adopt technology this early.
Additional technology developments to keep a pulse on
▪ Self-healing Algorithms
Commercial energy solutions are evolving to include cutting-edge self-healing algorithms. These advanced systems have the potential to maximize the lifespan and dependability of electric vehicle chargers. This is done by preemptively identifying and rectifying issues like battery degradation. According to a report by McKinsey & Company, these intelligent algorithms could improve the operational life of batteries by up to 40%.
▪ Tesla's The Supercharger
Anticipated advancements will likely see a broader integration of Tesla's supercharger across multiple brands. Thus far, companies like Ford and General Motors have already announced this past year they will be adopting Tesla's high-performing supercharger network, which touts over 45K chargers in the U.S. alone. Overall, this network has offered new levels of satisfaction among Tesla owners and could ultimately presage the future of EV charging for all-electric vehicles once cross-compatibility is introduced.
No catch 22’s: save money & make a difference today
If you're a proud owner of a business in Portland, Oregon or even Seattle, then you know that an electric vehicle charger installation is critical for growth and to create an eco-friendly experience. And when it comes to choosing the right commercial energy solutions provider, know that NetZero Energy is here and ready to help.
In summary, the future of EV demonstrates that installing stations will no longer be a luxury, but a necessity. But what truly makes this a seamless transition is having a service that values your success (and global impact) just as much as you do.
Step into the future of EV. Contact NetZero Energy today for a consultation.
