"Purchase cost is no longer a major concern for EV buyers in the US"   A few weeks ago, one of my neighbourhood friends here in Toronto was asking for my thoughts on buying a hybrid SUV to replace their decade old minivan. My immediate response was to suggest considering an EV, though I had assumed it would be significantly more expensive. Wanting to double check, I jumped on the OEM’s websites and compared lease payments. What I found surprised me. The vehicle they were looking at was a Toyota RAV4 hybrid in mid grade XLE trim, so I chose the Tesla Model Y RWD to do price a comparison. After some adjustments to account for down payment, incentives and lease term length, I was shocked to find that the RAV4 was less than CA$50 per month cheaper than the Tesla. In British Columbia and Quebec, which add local provincial EV incentives, the Tesla was over CA$50 a month cheaper! Yet the Tesla has more room, more standard features and technology, much better performance, a higher safety rating, and is much cheaper to run and maintain. The value is there, plus it is MUCH cheaper to run. This comparison is important as these two SUVs are the #1 and #2 top selling (non-pickup) vehicles in North America, which means that many people are doing this calculation. Some further research found that the business publication Forbes had come to the same conclusion. They found also most half of all EVs sold in the North American market are now cheaper to own than their ICE equivalents.     ▲References: CarEdge, Kelly Blue Book   Moreover, JD Power’s recently completed study on EV cost of ownership over a 5-year time frame versus a traditional combustion vehicle had similar results. This study found that in 48 out of 50 US states it made more financial sense to buy an EV versus an equivalent ICE vehicle, sometimes to the tune of more than US$10,000. That’s huge cash in most buyers’ language.  The first question to ask is how this can be the case. Weren’t EV supposed to be much more expensive? The answer is that they were, but not now; and there’s five reasons why this is the case.   1) COVID driven inflation   ▲Source: Cox Automotive   From the start of 2022 until mid 2023 the average price of a new vehicle rose from US$42,000 to US$50,000. In just 18 months a new vehicle had jumped almost 20%! Much of this was driven by supply chain shortages, which kept supply low, while demand increased due to government COVID recovery money being pushed into the economy. However, remarkably, as interest rates shot up to counter inflation, average new car prices have only seen minor decreases from this high. Learning: Inflation and interest rates impact the entire automotive industry, EV and ICE alike.   However, as ICE vehicle prices increased across the board, EV prices fell, and there are several reasons for this:   2) Battery and EV component prices continue to fall In an electric vehicle the battery makes up as much as 20% of the entire vehicle’s build cost. Therefore, cost reductions here can significantly lower total vehicle cost. This is exactly what has been happening as lower commodity prices and newer cost reduction technology, such as LFP cells, are significantly lowering the cost of batteries. Learning: Falling battery prices are creating the opportunity for lower EV prices   3) Changes to government rebates in the U.S. (Inflation Reduction Act)   ▲Source: Bloomberg   In the United States, the US$7,500 incentive to purchase an EV has moved from a tax rebate to an upfront incentive, but at the same time, new restrictions have been placed on which vehicles that incentive applies to. Essentially, a vehicle must be built in a USMCA free trade country, with batteries and their minerals sourced from countries with a Free Trade Agreement. However, as of today there is an exception: vehicles sold to companies still qualify for the rebate. This allows leasing companies to purchase EVs and apply the US$7,500 rebate for customers as a lease credit, drastically reducing monthly payments. It is now common to see EV lease deals for far less than an ICE vehicle, particularly in states that add further incentives. Learning: Bargain EV lease deals in the US have as much to do with the government EV incentive structure as OEMs incentives.   4) Demand, Supply, Incentives, and Margins Over COVID, there was nothing hotter in automotive than EVs. Demand was FAR higher than supply and OEMs had difficulty catching up due to the production expansion needed and COVID supply chain issues. Eventually, production (supply) caught up, right around the same time sales growth (demand) softened due to higher interest rates, creating a more balance inventory situation. On some models, OEMs even had over supply on growing sales, which was rebalanced with additional incentives. With balanced supply, EVs began to behave like any other vehicle. Sales volumes (demand) are impacted by the competitive product offering, retail offers and overall economic factors; as well as OEMs ability to produce those vehicles (supply). OEMs that have decided to pursue aggressive sales plans, or have a need to clear excess inventory, have added extra incentives, just like they do with ICE and hybrid vehicles. As an example, Stellantis recently announced emergency measures (i.e. HUGE incentives) to clear excess stock of their ICE RAM trucks and JEEP SUVs in North America, which occurred due to lower-than-expected demand. In other words, OEM demand / supply issues, and the levers they can pull to correct problems, are a normal part of the automotive business, regardless of the drivetrain. Interestingly, comparing manufacturer’s suggested retail price (MSRP) points and incentives on similar vehicles between Canada and the United States, after currency adjustment, is very revealing. Canada’s MSRP points for EVs are often 15% to 20% LOWER than in the US for the same vehicle (reference: Hyundai IONIQ 5). However, as interest rates climbed, OEM distributors in the US have ramped up retail discounts to significant levels, while Canada’s incentives have been minimal, suggesting that both are using their margins in different ways to suit the market. In other words, the US retail discounts are funded by a fat MSRP margin buffer that doesn’t exist in Canada. Learning: EV incentives aren’t an “EV chasm,” they’re a normal part of any OEM’s tactical business plan for any vehicle, regardless of whether they are EV or ICE, and in the US these EV incentives are being funded out of fat profit margins.   5) Local manufacturing To take advantage of the changes in the US Inflation Reduction Act, OEMs have been localizing production of EVs. Full compliance allows for the US$7,500 rebate to also be applied to cash and finance purchases, not available otherwise. One of the biggest has been the new and massive US$7.6 billion Hyundai production facility in Georgia, USA that produces the IONIQ 5 and the Kia EV9. With a capacity of 300,000 units annually, this factory will create 8,500 direct jobs, as well as another 3,500 jobs at the nearby SK On joint venture EV battery cell plant. Other EVs from non-North American brands with recent new start of production in North America include the Volvo EX90 and Polestar 3, made in Charleston, South Carolina; Volkswagen ID4, made in Chattanooga, Tennessee; and Honda Prologue and Acura ZDX, made in the Ramos Arizpe plant in Mexico. The combination of these things has resulted in several EVs with over 300 miles of range being available for purchase for UNDER the US average new car price, a key range figure that opens acceptability for most North Americans. All these factors are adding up to EV sales that are continuing to grow faster than the market. Though down from their record growth rates in 2022 and 2023, Q2 2024 saw EV sales grow at 8% over Q2 2023, compared to 3% for the entire market, according to the data shown in “Q2 2024 Kelly Blue Book EV Sales Report.” However, one problem does remain, and that is the lack of affordable EVs under US$35,000. While EVs on sale compare very well with their ICE competitors, the lack of vehicles for the value buyer is an issue. This is quite different to markets like Europe and China that offer an assortment of lower cost electric vehicles. This appears to be changing as new models are on the horizon to fill this gap, including the Kia EV3, updated Chevrolet Bolt and a low-cost Ford model. The stabilizing of prices and supply has resulted in another benefit: a proliferating used EV market. This is important as in North America, four used cars are sold for every one new car. With EVs becoming popular new cars, the number of used electric vehicles available has quickly grown. This newfound supply, plus the new EV tax credit in the US, has allowed lower budget buyers to step into an EV and exploit the operational cost savings at a price that they can afford.   ▲Source: iSeeCars   But, is it true that the purchase cost for buyers has become no longer a top concern? According to the most recent Annual Global Mobility Study that Vision Mobility, CuriosityCX and LEK Consulting prepare annually across nine countries and over 3,000 respondents, battery life has replaced purchase cost in the US as the #1 concern for EVs. In fact, purchase cost is no longer even in the top 3 EV concerns! Yet, while the cost of an EV battery replacement can be expensive, the warranties and technical design means that few new car buyers need to worry. Most EVs sold today have a warranty of at least 8 years or 120,000 miles (192,000 kilometres) and are designed for 1,500 to 4,000 cycle rating (full to empty = 1 cycle) or 600,000 to 2 million kilometres of use, the concern seems more fuelled by other factors such as unbalanced media reports and previous experience with cell phones than actual data. The future widespread adoption of EVs in North America has as much to do with continually removing barriers and objections as anything else. Once purchase price was a very significant issue, now that has been removed. Now concerns over battery longevity have become an issue, yet with long warranties and improved technologies, this will also pass by the wayside. Fire risk has been a concern among some, but the actual data shows the rates of EV fires are miniscule when compared to IC vehicles. Will other concerns pop up for EVs over the next few years? Almost definitely, and those too will be worked through. There’s absolutely no doubt that EVs will become the dominant form of transportation over the next 20 years because they are far less polluting, technically superior and now, lower cost. While the industry’s fortunes will go up and down, over the long term, EV dominance of the automotive industry is something you can bank on.   ■ Related articles - Why the future of transportation in the US remains battery electric (by James Carter) - Soon EVs will be the only vehicles purchased by lower mainstream buyers (by James Carter)

We're back with SK Innovation’s Daily Drop, where we uncover the surprising ways petrochemicals weave into our everyday lives. Today, we're going to explore the fascinating world of art. With autumn's vibrant colors upon us, it's the perfect time to unleash your creativity. But here's a fun fact: did you know your art supplies are powered by petrochemicals? From durable brushes to vivid paints, petrochemicals enhance the tools that bring your artistic visions to life. Check out the fun facts behind art supplies by clicking the card news below!   (Swipe left to check the slide)     ■ Related articles - Suitcases: Your reliable travel companions packed with petrochemicals - Umbrellas: The petrochemical marvels that shield you from both rain and sun

  The world is locked in ice. Skyscrapers in New York City and the Statue of Liberty are buried waist-deep in snow, as if the Ice Age has returned. With the power out, people struggle to survive. This eerie scene from the 2004 disaster film The Day After Tomorrow felt almost prophetic when the devastating blizzards of 2022 hit the U.S. and Canada, bringing the movie’s chilling vision to mind for many.   | The rise of electric vehicles and secondary batteries Twenty years ago, there was something absent from the 2004 movie: electric vehicles (EVs), as there were not many on the roads at that time. However, things have changed. At the end of 2022, amid the chaos of a historic winter storm in North America that caused massive power outages affecting nearly 1 million homes and offices across Canada, a post on the major U.S. online community Reddit caught people’s attention. A Canadian shared how his Ford F-150 Lightning, equipped with SK On's NCM9* battery—developed in 2020 as the world's first—powered his fridge, Wi-Fi, lights, and TV for 44 hours during the blackout, and still had 65% of its battery left. His EV turned out to be a true lifesaver. *NCM9: a high-performance, high-nickel battery containing approximately 90% of nickel, along with cobalt and manganese In the past, we could only access electricity within the limits of power lines. Now, with the leap in secondary battery technology, we can use electricity freely, anytime and anywhere. As seen during the North American blizzard, these batteries kept life running smoothly despite power outages. They're also becoming essential backup power sources for critical facilities like hospitals and data centers. As technology advances, the usage of secondary batteries is set to expand even further.   | Secondary batteries - beyond smartphones and EVs, also inside our bodies?   🔍 Breaking the stereotype of just being a “mode of transport” Secondary batteries are the “heart” of electric vehicles, providing the power stored in large-capacity cells to run the motors. Unlike conventional cars that rely on burning fossil fuels such as gasoline, diesel, or LPG to drive their engines, electric vehicles depend on these batteries. According to the International Energy Agency's Global EV Outlook 2024, electric vehicles sold in 2023 will emit roughly half the carbon dioxide of traditional internal combustion engine vehicles over their lifetime. This makes electric vehicles a cutting-edge solution for tackling climate change and accelerating the transition to clean energy. Based on their energy sources and operation, electric vehicles are typically classified into three main types: BEV (Battery Electric Vehicle), HEV (Hybrid Electric Vehicle), and PHEV (Plug-in Hybrid Electric Vehicle). BEVs operate their motors solely by electricity stored in their batteries and do not use internal combustion engines. This means they’re equipped with high-capacity batteries that provide impressive energy density and output. HEVs combine internal combustion engines with electric motors and typically use nickel-metal hydride (NiMH) or lithium-ion (Li-ion) batteries, which are known for their durability and performance. PHEVs have larger battery capacities than HEVs and can be charged using external plugs. Electric vehicles are making headlines for their ability to act as portable power sources, thanks to their V2L** function, which allows them to supply power externally, ideal for camping and other situations where reliable electricity is less accessible. **V2L (Vehicle-to-Load): the ability of an EV to supply power to external devices and appliances using its battery     Recently, Canadian freelance journalist, Benjamin Hunting, shared his story on the Candian automotive news site Driving.ca, which quickly gained attention. He hosted his wedding in a forest outside the city, where the biggest challenge was the lack of electricity. The catering service needed ample power for cooking and lighting, and the guests needed to navigate the dark, wooded area safely. The solution? The Ford F-150 Lightning electric pickup truck. Its SK On’s NCM9 battery provided more than enough power to keep the event running smoothly, despite the limited electricity and plug availability at the venue, much to the journalist’s amazement. Benjamin Hunting praised the truck, calling it “a battery with a truck attached.” He added, “Even more impressive? After putting in a full 13 hours of work, the F-150’s battery was still at 94% capacity. ” He also noted, “We could have immediately slipped behind the wheel and driven off on our honeymoon without having to hit up a charger on our way out of town.”   🔍 Tackling power uncertainty with “this” solution Energy Storage Systems (ESS) not only alleviate peak load during high-demand periods by supplying stored power, but also act as critical backup during power outages, providing emergency support to essential facilities like communication centers and data hubs. Additionally, ESS optimizes energy consumption by efficiently storing and releasing excess energy from variable renewable sources such as solar and wind. SK On is currently developing commercial ESS batteries, prioritizing safety and offering comprehensive battery solutions, including optimized management systems for cells, modules, and racks. At InterBattery 2024, Korea’s largest battery exhibition held in March, SK On unveiled high-nickel and LFP (lithium iron phosphate) ESS modules, along with a next-generation DC block model that connects modules in series and parallel, capturing the attention of attendees. At the event, SK On also showcased its thermal propagation prevention solutions, certified for fire safety in North America, and a liquid cooling system designed to minimize cell temperature differences and enhance charging and discharging efficiency.   🔍 Small and lightweight batteries Secondary batteries are at the core of advancing everyday electronic devices like wireless earphones, smartwatches, and smart glasses. The latest smart devices are compact yet feature high-performance and other functions such as noise cancelling and AI, which drive up power demands and, in turn, increase the need for batteries with higher energy density. Consequently, the demand for higher energy density in the batteries used in these devices keeps growing. Recent innovations have led to the development of flexible batteries that can bend or even attach like stickers, thereby improving the comfort and usability of wearable devices.   🔍 Batteries operating inside the human body The development of miniature secondary batteries is expected to revolutionize modern healthcare. The batteries used in devices implanted inside the human body are directly linked to the patient's life, making reliability and safety a top priority. Recently, secondary batteries are powering advanced medical devices such as pacemakers, which replace the heart’s natural sinoatrial node***, and nerve stimulators. The application of secondary batteries in implantable medical devices is gradually becoming a reality. However, current limitations in battery capacity mean that replacement surgeries are still necessary after a certain period. Ongoing efforts are focused on addressing these power supply challenges. ***Sinoatrial node: generates electrical impulses that spread across the heart, causing the heart to contract and thereby regulating the rhythm of the heartbeat in mammals   🔍 Cutting the cords Secondary batteries have brought game-changing advancements to the field of factory automation and industrial robotics. Now, robots are liberated from power outlets and cables, granting them enhanced mobility. In particular, the logistics sector has seen a skyrocketing demand for robots equipped with secondary batteries. These robots include those used in warehouses and ports for unloading, locating, and packaging goods, as well as those utilizing tracking functions to deliver food to restaurant patrons, known as AMRs (Autonomous Mobile Robots). Additionally, there are last-mile delivery robots that use AI to autonomously detect and respond to their surroundings, delivering items right to the customer's doorstep. Thanks to advancements in secondary batteries, robots have been liberated from the constraints of power outlets, injecting new vitality into the industrial robot market.   | Transforming shapes for every need with versatile form factors     While both tiny batteries in wireless earphones and those powering large vehicles fall under the “secondary batteries” category, their shapes and properties vary significantly. This is because size and shape of the battery depend on the available space in the device, the battery's energy density, and its capacity. For EVs, multiple cells are often combined into a single pack, with manufacturers adopting different designs. So, what are the features of different secondary battery form factors? ■ Classic battery form – Cylindrical batteries Cylindrical batteries, resembling common household cells, are a classic choice in battery design. They use a jellyroll structure, with the cathode, anode, and separator rolled into a metal cylinder, filled with electrolytes, and then sealed. These batteries are cost-effective, easy to mass-produce, and offer a reliable supply. Although they feature high volumetric energy density, they have lower capacity and shorter lifespans compared to other types. This means multiple units must be bundled together for use in EVs, which drives up system costs.   🤔The 4 key components of secondary batteries - Cathode: During charging, ions lose electrons and are oxidized at the cathode; during discharging, ions gain electrons and are reduced. - Anode: During charging, ions gain electrons and are reduced at the anode; during discharging, ions lose electrons and are oxidized. The process is the opposite of the cathode. - Electrolyte: A substance that fills the space between the cathode and anode, facilitating the movement of ions within the battery. - Separator: A thin film positioned between the cathode and anode that prevents internal short circuits during charging and discharging. It allows ions to pass between the electrodes while ensuring electrons do not flow in the wrong direction.   ■ Power in a box – Prismatic batteries Shaped like a sleek rectangular box, prismatic batteries pack their cathode, anode, and separator layers inside an aluminum can. Although the round jellyroll structure inside the square case slightly reduces space efficiency, the aluminum shell enhances durability and resistance to external impacts. SK On unveiled a life-size model of the prototype of its prismatic battery at InterBattery 2023, highlighting its rapid charging capabilities.   ■ Batteries in a flexible film pouch – Pouch Batteries Pouch batteries, encased in a flexible film pouch, offer versatility in size and shape compared to cylindrical and prismatic batteries. Instead of using jellyroll structure, the anode, cathode, and separator layers are stacked, maximizing internal space and boosting energy density. This efficient design, combined with ease of processing, allows for a variety of shapes, making them ideal for thin and wide design. These qualities meet the diverse needs of EV manufacturers seeking customized battery solutions for different models. At InterBattery 2024, SK On, known for its expertise in pouch batteries, captivated the audience by unveiling its Advanced SF (Super Fast) battery, featuring impressive rapid charging capabilities. First introduced in 2021, the original SF battery, a high-nickel battery, can charge from 10% to 80% in just 18 minutes. The new Advanced SF model enhances this process further, increasing energy density by 9% while maintaining the same quick charging time. This increase in energy density results in longer driving ranges for EVs on a single charge.   ■ Flat and round like a coin – Coin cell batteries Coin cells, small coin-shaped batteries, are essential components for small electronic devices such as wireless earphones or medical devices. Their compact size means all essential battery components must fit into a very limited space while ensuring reliable performance. As wearable devices become more sophisticated, their power needs grow as well, driving efforts to boost the energy density of coin cells.     What’s next for secondary batteries, the unsung heroes that have revolutionized our quality of life? It might be towards batteries with even higher safety and energy density. Beyond mere convenience, the innovation in our modes of transportation, lifestyle patterns, and infrastructure, coupled with global efforts to tackle climate change, leads to the development of next-generation batteries such as solid-state batteries. These technological advancements will be more than just performance improvements; they will be the key to a sustainable future!   ■ Related articles - ② The 4 key components of a secondary battery - ① The history of battery – From dream to reality