Cars are no longer just a way to get from A to B.
The market for connected cars is predicted to be worth over $215 billion by 2027.
With the demand for greater connectivity set to soar, 5G-enabled connected cars will become the new norm. What we expect of a vehicle is fundamentally changing from a tool used to merely move us from A to B, to an integrated, fully-connected hub.
Connected cars have clear benefits, being potentially safer and less harmful for the environment. They also present the car industry with an opportunity to innovate and create stronger relationships with its customers than ever before. 5G connectivity is the future of the auto industry and will redefine mobility as we know it.
Here are four ways in which 5G-connected vehicles are redefining the world's driving experience.
1. Improved safety
According to the UN, approximately 1.3 million people die every year as a result of road traffic accidents, with 20-50 million suffering non-fatal injuries. Over half of all deaths are vulnerable road users, such as pedestrians and cyclists.
The introduction of 'vehicle-to-everything' communications enables a more direct flow of information between vehicles, pedestrians and road infrastructure. This means that drivers will be alerted to nearby hazards, such as broken-down vehicles, reducing the chance of accidents. It has the potential to significantly improve road safety around the world.
2. Consumer experience
Driver demand for connectivity is increasing as people become more familiar with the benefits of staying connected. According to McKinsey, 40% of consumers would change car brands just to gain more connectivity within their vehicles, rising to 61% for drivers in China. 5G-enabled vehicles allow drivers to enjoy their favourite entertainment apps, such as music streaming services or audio book services, from the comfort of their vehicle.
The demand for a more luxurious driving experience with all the comforts of home has never been higher. It's estimated that by as early as next year, there will be more than 125 million passenger cars with embedded connectivity on the world's roads, a 270% increase since 2018.
As well as improving road safety, many of the key features of 5G-enabled vehicle-to-everything technology could also help to manage traffic congestion in major cities. Vehicle-to-infrastructure communication enables direct communication channels between a vehicle and nearby road infrastructure, without need to connect through a central mobile network. This could, for example, alert drivers to an upcoming red light or traffic jam, allowing them to alter their path accordingly, or adjust the vehicle's rate of travel to maximize fuel economy and reduce emissions.
4. Alternative revenue streams for auto makers
5G also presents a huge revenue opportunity for auto makers that goes beyond just the point of sale. It will allow manufacturers to create lasting connections with customers by offering additional features such as remote diagnostics, predictive maintenance and online service scheduling – all of which would not be possible without integrated connectivity.
Map shows Europe's imminent Great Leap Forward in battery cell production
- China produces 80 percent of electric vehicle batteries.
- To achieve battery independence, Europe is ramping up production.
- And the U.S.? Action is needed, and quick.
This is a map of the future — the future of battery cell production in Europe. If and when all projects on this map are up and running, Europe will have a battery cell production capacity of around 700 gigawatt hours (GWh). That's crucial for two reasons: (1) those battery cells will power the electric vehicles (EVs) that will soon replace our fossil-fuel cars; and (2) a production capacity of that magnitude would break China's current near-monopoly.
Say what you will about state-run economies, but they're great at concentrating effort on a particular target. About a decade ago, Beijing directed huge resources towards its photovoltaic industry. Today, nine of the world's 10 largest solar panel manufacturers are at least partly Chinese. China is similarly resolved to become the global leader in EVs, including EV battery production.
And so far, it's working. At present, about 80% of the world's lithium-ion battery cells are made in China. Lithium-ion batteries are the ones used in EVs. In sufficient numbers, lithium-ion batteries can also be used for large-scale energy storage, which would help even out power supply fluctuations from sources like solar and wind.
China's dominance in this area is making many outside China nervous. In previous decades, OPEC had a similar stranglehold on producing the oil that makes cars run and factories hum. Then the organization had a political point to make and turned off the tap. During the oil crisis of the 1970s, oil prices skyrocketed and economies crashed.
Avoiding a 21st-century version of that scenario requires a strategy for EV battery self-sufficiency, and Europe has one. In 2018, the EU launched its Battery Action Plan, a concerted effort to increase its battery production capacity. Realizing they couldn't beat China on price, the Europeans resolved that their batteries would be greener and more efficient.
Easier said than done. Setting up battery production is complex, expensive, and slow. And as the EU's woefully slow vaccine rollout demonstrates, the organization's strength-in-numbers argument doesn't always work in its favor. Indeed, by 2020, only four of the dots on this map were up and running:
- a facility by Envision AESC in Sunderland (UK - now ex EU)
- a Samsung factory in Göd (Hungary)
- an LG Energy Solution plant in Wroclaw (Poland)
- a factory by Leclanché in Willstätt (Germany)
But in this case, slow and steady may win the race. At least two dozen battery plants are in the works across Europe (i.e. EU and its near abroad), and four of those should come online in 2021 alone, including Tesla's plant near Berlin. Tesla, incidentally, coined the term "gigafactory" for its facility in Sparks, Nevada. As the title of this map suggests, it's becoming the generic description for any large battery cell production facility.
By the end of the decade, Europe will have around 30 gigafactories.Credit: CIC energiGUNE
Despite the fact that Tesla's Nevada plant is on its way to becoming the world's largest building, battery production capacity is growing fastest in Europe. Predictions vary, but all observers agree that Europe is on the verge of a Great Leap Forward. Here's why:
- Europe's current production capacity is about 30 GWh.
- One forecast puts that figure at 300 GWh by 2029, another even at 400 GWh by 2025.
- Adding up the maximum capacity of all facilities on this map comes close to 700 GWh by 2028.
- In terms of global capacity, BloombergNEF predicts Europe's share could increase from 7% now to 31% in 2030.
- According to Eurobat — disappointingly, not the Gauloises-smoking, Nietzsche-quoting counterpart to Batman — the value of the battery industry will increase from €15 ($18) billion in Europe and €75 ($90) billion worldwide in 2019 to €35 ($42) billion in Europe and €130 ($156) billion worldwide by 2030.
So, who will be Europe's answer to CATL (short for Contemporary Amperex Technology Co. Ltd.), China's main battery manufacturer? There are several pretenders to the crown. Here are some:
- Britishvolt, set to go online with Britain's first and largest gigafactory in Northumberland (UK) in 2023, with a maximum capacity of 35 GWh per annum.
- Northvolt, led by former Tesla execs, supported by the Swedish government and the European Investment Bank. Also funded by Volkswagen and Goldman Sachs. Aims to be green and big. One plant coming online in Sweden this year, another in Germany in 2024. Combined maximum capacity is 64 GWh.
- Tesla. Not content with its one gigafactory (40 GWh) opening this year, the company has already announced that it will build a second plant in Europe.
That second plant is not yet on the map. Also missing are the half dozen gigafactories that Volkswagen aims to open in the coming years. If Europe is to become self-sufficient in EV batteries, even more will be needed.
Europe's path to battery supremacy
In 2020, 1.3 million EVs were sold in Europe, edging past China to become the world's largest EV market. In 2021, Europe looks set to maintain that lead. By 2025 at the latest, EVs will have achieved price parity with fossil-fuel vehicles, not just in terms of total cost of operation but also in upfront cost.
Add to that the increasingly hostile environment — namely, higher taxes and stricter regulations — to fossil-fuel cars in Europe, and the pace of electrification will increase dramatically by mid-decade. Going by EU requirements for CO2 emissions alone, the EV share of the total vehicle market would need to be between 60% and 70% pretty soon.
While that may seem an impossibly high target today, things could start looking different very soon. Volkswagen aims to have full-electric cars make up more than 70 percent of its European sales by 2030. Volvo and Ford even aim to present entirely electric lineups by 2030 at the latest. And that year is also when the UK government intends to ban the sale of new fossil-fuel cars.
All of which could translate into base demand for EV batteries in Europe as high as 1,200 GWh by 2040. Even with all planned factories on the map running at maximum capacity, that still leaves a production capacity gap of about 40%.
To avoid batteries becoming a bottleneck for electrification, the EU likely will pour even more money into the industry via the European Green Deal and Europe's post-COVID recovery plan. Battery production is not just strategically sound; it also boosts employment.
A study by Fraunhofer ISI says for each GWh added in battery production capacity, count on 40 jobs added directly and 200 in upstream industries. The study forecasts battery manufacturing could generate up to 155,000 jobs across Europe by 2033 (although it doesn't mention how many would be lost due to reduced production of fossil-fuel cars).
Coming to America
And how fares America? Electrification is coming to the U.S. as well. By one estimate, EVs will have a market penetration of about 15% by 2025. Deloitte predicts EVs will take up 27% of new car sales in the US by 2030. The Biden administration is keen to make up for past inaction in terms of switching to post-fossil energy. But it has its work cut out.
Apart from Tesla's Gigafactory, the U.S. has only two other battery production facilities. If current trends continue, there would be just ten by 2030. At that time, China will have 140 battery factories and Europe, according to this map, close to 30. If U.S. production can't keep up with demand, electrification will suffer from the dreaded battery bottleneck. Unless America is content to import its batteries from Europe or China.
Strange Maps #1080
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Whose responsibility is it to ensure that there is affordable access to employment?
What responsibilities do employers have in terms of supporting their workforce's commute to work?
There are great examples of efforts from employers to facilitate commutes to work, but the same mobility perks are much harder to offer for small business employers, non-traditional employers, contract workers and the self-employed.
For those groups who don't enjoy employee commute perks, transportation and access to jobs is yet another hurdle, especially during COVID.
In some tech companies, employers are offering stipends for their employees to deck out their remote working areas. Other firms are incentivising a return to work by offering additional mobility benefits that ease the struggle of a commute.
In fields like investment banking, it is not uncommon for employees to receive an allowance for a taxi home after working long hours. Ironically, these individuals could easily afford an Uber ride themselves. For most employees working for an hourly rate the same benefits often do not apply, and many essential workers in the food and healthcare industries fall into this camp.
Through the outbreak of the pandemic, employers have answered these questions, albeit inequitably. Some identify a responsibility to support their workforce commute. Recognizing their responsibility of giving their workforce the opportunity to protect their health and that of their loved ones, others still have helped non-essential employers establish alternatives to office commuting over the last year.
While some firms have attempted returns to the office, the understanding in many workplaces remains that employees are entitled to choose the risks to which they're exposed in order to get to work, even if there might be costs for collective productivity.
COVID has removed employees' needs for self-funded commutes, democratizing access to work. This historic shift triggers a broader conversation point: whose responsibility is it to ensure that there is affordable access to employment, if affordable is defined in terms of dignity, safety, finances and time?
The commute as part of an obstacle to employment
Questions abound surrounding the commute and responsibility: Should the public sector help subsidise commuting solutions for underserved communities, to help combat unemployment? Should employers take the same care of their lower-waged employees as they do of their higher earners? Should contractors guarantee mobility support for the essential workers they provide, so they can continue delivering their services regardless of circumstances? Security guards would be one such example.
The ease or difficulty of a commute impacts worker performance, worker health and the length of stay of employees in the company. Commuting is an unspoken part of the job without any financial, social or environmental recognition. For many there is no financial returns for commutes; it's just the energy time sink you invest in to keep a job.
Environmentally, it's the unacknowledged pollution and traffic sink. But as a society we can choose not to perpetuate this broken reality.
When funding commutes is in the financial interest of the firm
In some industries, it can be relatively easy to quantify the costs of having an employee become unable to perform overtime. Associates in law firms, for example, track billable hours.
Without that allowance for a late-night taxi — i.e. if they just declared they were not comfortable getting back to their neighborhood via public transport late at night and therefore decreased their hours — employee bonuses and overall compensation would be proportionately lower, as would the revenue produced by the firm.
Some associates bill over $1,000 an hour. Some law firms then charge a fee on top for a supervising associate to review and approve the work. The math is simple: a $30 ride and a $50 dinner can yield a huge ROI for the firm.
The same math becomes much more complicated for the janitor who comes in at 10pm so he can clean the office before the next morning without bothering the managing partners or distracting high-paying customers. But isn't this person equally entitled to not jeopardize his safety, "just" so he can keep his job — financial gain for the firm, or otherwise?
COVID-19 has created a crystal clear understanding of the risks everyone is taking each time they step into an indoor space. And yet, in spite of the use of mask wearing to get on with our lives to some degree, the world has largely reached a consensus that COVID-19 was dangerous enough to justify not forcing commutes to the office.
The world now has an enormous learning opportunity. In re-evaluating the commute, we see we might have spent decades missing opportunities for greatly increased ROI for global economic development via corporate reform. We've taken the first steps towards democratizing commutes: let's stay on track.
Feel good about your submission by donating to the Playing for Change Foundation.
- The 2020 Tesla Model 3 ranges up to 250 miles on a single charge.
- The consumer-level model goes up to 140 mph, going from 0 to 60 in 5.3 seconds.
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People love giveaways—especially when the prize is one of the hottest cars on the market. The 2020 Tesla Model 3 is the company's consumer-friendly model that boasts many of the same features as other models at an affordable price.
Of course, free is the best price of all.
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The Model 3 sports 18' aero wheels and rear-wheel drive. With a top speed of 140 mph, you can go from 0 to 60 in just 5.3 seconds. The car also excels on longer drives, with a range of 250 miles.
Playing for Change was co-founded in 2002 by music engineer Mark Johnson and film producer Whitney Kroenke to help children in disadvantaged regions through music performance and education.
The project has produced dozens of high-quality music videos of popular songs, including Bob Marley's "One Love," which featured Spain's Manu Chao, and The Rolling Stones' "Gimme Shelter" featuring blues musician, Taj Mahal.
The Playing for Change Foundation was founded in 2007 as a means for supporting disadvantaged children and communities around the world. Over 2,000 kids in 10 countries have benefited from this charitable program. So you know your money is going to a good cause.
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The electric car manufacturer says updates to its battery design and manufacturing process will help lower production costs.
- The high cost of batteries is the main reason why electric vehicles cost more than gas-powered cars.
- At the company's 'Battery Day' event on Tuesday, Tesla announced a new battery design that will give its cars more power and a longer range.
- The success of Tesla's plan depends on its ability to scale up production.
Cheaper, more efficient batteries. That's what Tesla says will allow it to offer a $25,000 electric car within the next three years. The announcements came at the company's "Battery Day" event on Tuesday afternoon in Palo Alto, California.
"One of the things that troubles me the most is that we don't yet have a truly affordable car, and that is something that we will make in the future," Tesla CEO Elon Musk told a socially distanced audience, who were sitting in cars in a parking lot. "But in order to do that, we've got to get the cost of batteries down."
How to cut costs? Tesla is working on a design update for its batteries, and the company plans to begin manufacturing them in-house. (Panasonic currently produces Tesla batteries.) A key design update is removing a tab within the battery that connects the cell to what it powers.
"You actually have a shorter path length [for the electron to travel] in a large tabless cell than you have in the smaller cell with tabs," Musk said. "So even though the cell is bigger, it actually has more power."
Tesla also plans to lower costs by using nickel instead of cobalt in its cathodes. The company said its new cathode design would reduce costs by about 75 percent, and also remove waste water from the manufacturing process.
What's more, the international cobalt supply is limited, and most of it comes from the Democratic Republic of Congo, where adult and child miners are known to be exploited.
Screenshot of Tesla's 'Battery Day' presentation
It's unclear when Tesla will stop using cobalt, or when it will stop sourcing its batteries from Panasonic. But Tesla claims that its new battery design and manufacturing changes will allow it to cut the cost per kilowatt-hour in half. If Tesla can successfully scale up production, the company could hit its goal of $100 per kilowatt-hour sooner than expected.
Hitting that mark could usher in the electric-car revolution, considering $100 per kilowatt-hour is generally regarded as the threshold the industry needs to reach in order to make electric vehicles cost competitive with gas-powered cars.
A $25,000 electric car would also be Tesla's cheapest offering by far. The company had previously promised a $35,000 car, but only offered one at that price for a limited time. Tesla's website says its Model 3, its cheapest car, starts at about $39,000.
Photo of Tesla's new battery design
To be sure, Musk is known for promising big on his projects, but not always following through on the promised timetable. But despite having an "insanely hard" 2020, as Musk said, Tesla's had a good past couple years.
"In 2019, we had 50% growth," Musk said at the event. "And I think we'll do really pretty well in 2020, probably somewhere between 30 to 40 percent growth, despite a lot of very difficult circumstances."