What Volvo’s Announcement Means to Us

Recently, Volvo made a stunning announcement: it has committed to selling only battery-powered EVs by 2030. Not just in Europe, mind you. Everywhere. The news comes on the heels of recent automaker reports showing a surge in worldwide EV sales and the official unveiling of Volvo’s second BEV this past Tuesday – the C40 Recharge crossover coupe. (The XC40 introduced in 2018 was the first.) See more details in the article here: https://www.newsmax.com/Finance/streettalk/volvo-electric-vehicles-ev-online/2021/03/02/id/1012158/

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2018 Volvo XC40
Photo Courtesy of Vauxford

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Why are we so excited by this? After all, Volvo’s just one manufacturer, right? Well, for several reasons. First, Volvo has been an innovator in the automotive space since it introduced the three-point seatbelt in 1959, and more recently blind spot warning, pedestrian detection and rollover protection systems that have been appropriated by rivals. It’s therefore likely that other manufacturers of ICE vehicles will follow suit as EV demand continues to drive supply. (And profits.) Of course, this means more charging installations will be required, particularly in places like schools, parks, restaurants, daycares and other family-centered locations that play to Volvo’s customer base.

In addition, Volvo notes that the C40 Recharge will sell only online, while the company’s head of commercial operations said he expects half of all vehicle sales to be online by 2025 in furtherance of their progressive agenda. This affords other forward-thinking companies the opportunity to create complementary web-based services to help Volvo in its pursuits. For instance, the new EVCS subscription plan could be coupled with online vehicle sales as a discounted add-on.

All of this signals a larger trend in the growing embrace of EVs by the general public – one that Volvo executives are confident enough to get behind with large sums of investment dollars. In fact, the company recently announced it would sink approximately 5% of annual revenues into EV R&D, an amount equaled to about $1.5 billion USD. One can imagine that the amounts spent on marketing and advertising will likewise be ambitious. As both awareness and vehicle options grow, so will sales.

Such marketplace expansion reminds us of Wright’s Law, which essentially states that the cumulative doubling of a technological innovation will result in increased production volume that reduces costs. (For those not familiar with this axiom, read more about it here: https://ark-invest.com/articles/analyst-research/wrights-law-2/) EV technology is no exception. And the fact that new EV sales topped 2.2 million in 2019, according to the IEA, as EV manufacturing costs saw a 28% drop is no coincidence.

Riffing off the Volvo announcement then, a potential 20-fold increase in the number of Volvo EVs on the road is going to significantly reduce the overall cost of subsequent models, making them even more accessible to lower income drivers and thereby further increasing overall EV adoption. Preparedness will be key. A big new wave of EVs will require far more charging sites and will increase the appetite for government incentives. As we see the sector scale, the lower price of EVs themselves will be coupled with other cost reductions resulting from more abundant charging stations, V2G technology and various dynamic charging innovations.

Volvo competitors eager to “keep up with the Joneses” have already started introducing new EV models, from the Hyundai Kona EV and Mustang Mach-E to the Audi Q4 e-Tron and BMW iX3, demonstrating that the “EV-olution” is already underway. The question is who will create the necessary support structure. EVCS is already taking the lead on generating modernized charging infrastructure throughout California, with other states soon to follow; our goal is to make sure the country is ready for the anticipated deluge of BEVs that will be hitting the road in the next decade and beyond.

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Recap of “Today, Explained” Podcast: It’s Electric!

Recently, we listened to Vox’s Umair Irfan discuss on his Today, Explained podcast how Norway has been trailblazing in the world of electric mobility and what strides the US can make to follow suit. We not only found the episode a fascinating exploration of how our Scandinavian friends serve as both innovators and motivators, but it elucidated ways in which EVCS can and has been working toward similar goals within the US. Below are some of the key takeaways from the podcast as well as how it relates to what we’re doing here and now.

EVCS Fast Charging Network to Use 100% Renewable Energy (Newsire)

One of the most common criticisms foisted on the electric mobility industry is that EVs are not technically carbon neutral since the electricity needed to power them is generated through fossil fuels, including coal and natural gas. This argument is not without merit and presents those of us in the EV infrastructure sector with yet another lofty goal – true carbon neutrality through electrical grids powered by renewable energy sources like wind and solar. And our most recent press release discusses how we at EVCS are doing just that.

EVCS Secures Credit Facility with Macquarie Group (Newswire)

We recently employed PR firm Firecracker to help us get the word out about all of the wonderful things EVCS is doing to make an all-electric future a reality. One major step toward this goal was our securing a credit facility that would allow for accelerated expansion of EV infrastructure, giving us confidence that the financial support required would be available when we needed it. Our PR team then went to work, drafting the following press release that outlines the particulars of this momentous achievement:

Installation of the Month (April 2021): Hilton Hotel & Plaza San Gabriel

Hilton is one of the most recognizable and respected organizations in the world. They own 18 different brands and more than 6,400 properties in 119 countries. Since 1925, they’ve been a model of the hospitality industry – synonymous with customer relations, integrity and innovation, which extends into areas like sustainability and the environment. Their website’s “Corporate Responsibility” page cites a commitment to fighting climate change, stating: “We seek to operate and grow sustainably, reducing our consumption of natural resources… We are proud to have set carbon reduction targets aligned with the Paris Climate Agreement.” And they continue to back up this commitment, including recently asking us to install EV charging banks at one of their key Los Angeles locations.

Analysis of Biden’s Infrastructure Plan

President Biden finally held his first official press conference last Thursday, March 25th, wherein he addressed his $2.2 trillion infrastructure bill, albeit from a high level that was light on details. What we do know is that the legislation will include $174 billion dedicated specifically to incentivizing EV manufacturing, the building of charging networks, tax credits for EV purchasers, and the development of alternative fuel technologies. The goal, Biden says, is to have a minimum of 500,000 EV charging stations installed across the country by 2030.