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The materials and energy density of current electric vehicles (EV) battery technology means that the vehicles are heavier and have a shorter range in comparison to internal combustion engine vehicles (ICEV). Battery cost also means EVs are relatively expensive for the consumer, even with government incentives, and dependent on sometimes-rare resources being available. These factors also limit the applicability of battery-electric technologies to heavy-duty vehicles. However, a number of next generation technologies are under laboratory development which could radically change this situation. Using a follow-the-money methodology, the strategic innovations of companies and public institutions are examined. The chapter will review the potential for changes in resource inputs, higher-density batteries and cost reductions, considering options such as lithium-air, metal-air and solid-state technologies. The innovations outlined in these technologies are considered from an economic perspective, identifying their advantages and disadvantages in commercialisation. At the same time, innovations, and investments in infrastructure electrification (Electric Road Service) and battery exchange point with swapping technology will be also considered due their implications and contribution to solving battery-related challenges and shortcomings. It is concluded that only a joint investment in effort on technologies would allow the use of EVs to be extended to a broad public in terms both of users and geography.

Electric cars represent the most energy efficient technical option available for passenger cars, compared to conventional combustion engine cars and vehicles based on fuel cells. However, this requires an efficient charging infrastructure and low carbon electricity production as well. Combustion engine cars which were converted to electric cars decreased lifecycle CO₂-equivalent emissions per passenger-km travelled down to one third of before, when powered by green electricity. However, through an analysis of 78 scientific reports published since 2010 for life cycle impacts from 18 aggregated impact categories, this chapter finds that the results are mixed. Taken together, however, the reduced environmental impacts of electric cars appear advantageous over combustion engine cars, with further room for improvement as impacts generated during the production phase are addressed. When it comes to battery components, Cobalt (Co) stands out as critical. Assessing the impact of electric cars on the local air quality, they are not ‘zero emission vehicles’. They emit fine dust due to tyre and brake abrasion and to dust resuspension from the street. These remaining emissions could be easily removed by adding an active filtration system to the undercarriage of electric vehicles. If electric cars are operated with electricity from fossil power plants nearby, the emissions of these plants need to be modelled with respect to possibly worsening the local air quality.

Purpose – Electric vehicles are very topical in developed countries. The breakthrough of new battery technologies and changing conditions driven by climate policy and growing fossil fuel prices has caused all major car manufacturing countries in the developed world to initiate R&D programmes to gain competitive advantage and to foster market diffusion of electric vehicles (EVs). This chapter looks at developments in China and compares them with observations from developed countries to draw conclusions about differences in their future paths of development.

Methodology – This chapter escribes the potentials and R&D approaches for different types of EVs in developing countries, using China as example, in comparison with developed countries. It looks at innovation strategies, policy framework and potential diffusion of EVs.

Findings – Market diffusion strategies in developed countries and China may differ, since, in the former manufacturers try to implement a premium strategy (i.e. offer high-price sophisticated EVs), while in the latter market, diffusion will probably appear at the lower end of vehicle types, i.e. via electric scooters and small urban vehicles. It is concluded that the market introduction strategies of EVs in developing countries and developed countries could converge because signs of downsizing of vehicles can be observed in the developed world, while upscaling from bikes and electric scooters can be expected for China, so that large-scale market introduction could occur via small city cars.

Implications for China – Instead of following the Western motorisation path, an option for China could be to develop a new one-stop-shop mobility concept integrating small EVs into such a concept.

The electric vehicle has been viewed as a technological solution to the dual plagues of dwindling fossil fuel supplies and pollutant emissions from gasoline powered vehicles. Futurists see a world where most personal transportation is electrically powered with energy supplied by tomorrow's power plants. In that future world, automobile power sources — representing millions of uncontrollable sources of pollution and energy waste — are consolidated into fewer, manageable, generators in fixed locations. With fixed and relatively few sources of pollution, resources can be better focused to provide clean, inexpensive energy for transportation. Many people share this vision of the future but few have been able to see how it can be brought into existence. Initial attempts have focused on legislation to stimulate the development of this market. As with any new technology, the electric vehicle field has developed its own terminology. For purposes of clarity throughout mis paper please bear in mind the following definitions.

This paper aims to evaluate different logistics configuration to deliver batteries from the supplier to the production lines of a European carmaker who is implementing new propulsions for its models.

Several scenarios about the supply chain for traction batteries have been identified based on the company’s requirements and constraints. Then, the variables used for the assessment of each scenario have been selected to calculate the unit battery supply chain cost.

The results underline that a direct transport without intermediate nodes is the cheapest one. On the contrary, an additional warehouse makes the organization of the network more complex. However, with this configuration, it is possible to cover the risk of supply since that a certain level of inventory is always guaranteed.

This study is limited to the analysis of only one model car, and just manual operations have been taken into account for computing the human resource time and cost. The present study is one of the first works exploring the organization of the supply chain for the batteries integrated in electric and hybrid vehicles together with the choice of the location of the related warehouses.

This paper is one of the first work on the assessment of batteries’ supply chain that are going to be integrated in low impact vehicles, focusing on location of the associated warehouse. The evaluation is carried out by taking into account all the sources of cost.

In this paper, the authors aim to consider the manufacturer's battery research and development (R&D) decision under subsidy. The supply chain includes two manufacturers, which produce substitutable electric vehicles, and a battery supplier. One of the manufacturers can choose to develop batteries or buy batteries. The authors assume consumers do not have enough trust in the manufacturer-made battery.

Stackelberg game is made use of to study the battery R&D strategy of the manufacturer under the incentive of government subsidies. This paper makes a comparative analysis on six situations, then the authors get some conclusions and give some managerial insights.

The results show that subsidy strategies do not necessarily reduce actual payments when the manufacturer does not research and develop batteries. The retail prices and actual payments are closely related to the substitutability and total cost advantage of product. The authors also find consumer trust positively affects the demand of the electric vehicles using the manufacturer-made batteries and then affects the manufacturer's battery R&D decision. When consumers have low trust in manufacturer-made battery, subsidy can bring greater sales and make R&D more profitable than procurement, so that the manufacturer chooses R&D. This study's findings also suggest consumer subsidy is always better for the government.

Distinguished from previous studies, the authors discuss the decision-making of component research, and introduce various government subsidy strategies and consumer trust to study their roles in the manufacturer's battery R&D choice.

The purpose of this chapter is to highlight the key differences in the production processes of battery electric vehicles (BEV) and internal combustion engine vehicles (ICEV). This exploration not only includes the fundamental physical architectural differences between the types of vehicles but also their entirely different supporting supply chains and underpinning business logics. Many nuanced and less-discussed considerations such as geopolitics, supporting infrastructure, and background policy implications are also covered. This chapter stems from the collection and analysis of secondary peer-reviewed data that is supplemented by verified press publications. The automotive industry moves at an incredibly fast pace, and thus understanding the sociotechnical transition to BEVs requires the additional, timely context of press publications. The overall result of this chapter is a holistic overview of the BEV’s value chain, and more importantly some much needed context for readers to better appreciate the significant implications that are involved. Society is not merely substituting one ‘full fat’ product for a ‘low calorie’ version, but rather we are adopting a new technology that solves some of our problems but comes with challenges of its own. In the coming transition to BEVs, it will be impossible to switch technologies without reformulating various policies and reconsidering how we consume transportation as a commodity or a service. By presenting how society intends to evolve its predominant road propulsion system, this chapter seeks to explain the twists and turns ahead, and offer a glimpse of a more sustainable path forward.

The case study has been prepared for management students/business executives to understand electric vehicle (EV) business, business environment, industry competition and strategic planning and strategy implementation.

The size of the Indian passenger vehicle market was valued at US$32.70bn in 2021; it was projected to touch US$54.84bn by 2027 with a Compound Annual Growth Rate (CAGR) of more than 9% during the period 2022–2027. The passenger vehicle industry, a part of the overall automotive industry, was expected to grow at a rapid pace, as the Indian economy was rising at the fastest rate. However, the Government of India (GoI) had put a condition on the growth scenario by mandating that 100% of vehicles produced would be EVs by 2030. Tata Motors (TaMo), a domestic player in the market, had been facing a challenging competitive environment. Although it had been incurring losses, it had successfully ventured into the EV business. TaMo had taken advantage of the first mover by creating an electric mobility business vertical to enable the company to deliver on its aspiration of providing innovative and competitive e-mobility solutions. TaMo leadership had been putting efforts to scale up the electric mobility business, thus, contributing to GoI’s plan for electric mobility. Shailesh Chandra, president of electric mobility business, had a big task in hand. He had to scale up EV production and sales despite insufficient infrastructure for charging and shortages of electronic components for manufacturing.

The case study has been prepared for management students/business executives for strategic management class. It is recommended that the case study is distributed in advance so that the students can prepare well in advance for classroom discussions. Groups will be created to delve into details for a specific question. While one group will make their presentation, the other groups will question the solution provided and give suggestions.

Teaching notes are available for educators only.

CSS 11: Strategy.

Considering the well-known finiteness of resources and particularly in the light of previous concepts to ensure car-based mobility, this paper aims to outline to what extent the cost structure for sustainable mobility is still acceptable in the foreseeable future for the majority of people. The production and use of energy for mobility is a decisive factor for the future development of entire regions. This can be directly derived from the dramatically evolving energy cost in the recent years rooted in an increasing scarcity of known resources.

On the basis of available new technology components, researchers from the University of Magdeburg (Germany) have converted a conventional car into an electric vehicle. Hereby, energy efficiency and sustainability were in the direct focus of the product redesign. Furthermore, a LCC analysis complements the qualitative analysis.

Thus, a driving concept for electric mobility in the urban environment was drawn up which meets the criterion of suitability for everyday use due to an e-conversion. Moreover, the outstanding efficiency of the designed powertrain is demonstrated.

Using the research electric vehicle Editha, the researchers point out which technical options can be inferred from available components for the creation of mobility in the urban environment. However, the source of energy is crucial to assess if the claim for sustainability is fulfilled.

The paper illustrates that a monetary advantage of electric vehicles, such as the prototype Editha, arises after seven years due to disproportional purchase costs.

In this context, the proposed driving concept of the prototype represents a transitional solution from vehicles with central engine to hub wheel electric engines. In addition, Editha is the first roadworthy and suitable for daily use research vehicle using an individual electric motor for each rear wheel without manual gearbox.

The purpose of this study is to examine both the technical feasibility and the commercial viability of several demand-side integration (DSI) programs to utilize the charging flexibility of electric transport vehicles in a logistic facility. DSI is important for improving system reliability and assisting in integrating renewables into the energy system.

A pre-assessment of several DSI programs is performed by considering effort for implementation, costs and economic potential. Afterward, the most promising programs are compared economically on the basis of optimization methods and economic analysis. The analysis is based on a comprehensive electric mobility project dealing with electric transport vehicles operating in container terminals.

The pre-assessment of several potential DSI programs revealed that many of these programs are unsuitable, largely due to regulatory requirements. Although using DSI to optimize the company’s load is feasible, controlled charging based on variable prices is particularly advantageous because the implementation requires modest effort while identifying significant cost-saving potentials.

Based on the analysis, other companies using electric transport vehicles have a foundation for identifying the most promising demand-side management program.

While most research has focused on individually used electric vehicles, here commercial electric transport vehicles operating in closed systems were investigated as this area of application was found to be particularly suitable for participation in DSI programs.