The Labour manifesto contains some interesting policies relating to EV sector, the most eye-catching pledge being to restore the 2030 ban on new cars with internal combustion engines. A pledge which has slipped the attention of mainstream media is around EV batteries. Labour intends to introduce an Electric Vehicle Confident labelling requirement, for new EVs, which would give consumers accurate data on metrics such as the carbon footprint of the EV and expected life of the battery. For used EVs, there will be a requirement to get a standardised measurement to show battery health, which would mirror plans from the EU. Labour clearly believes that greater reporting on battery state of health would give consumers much-needed assurances, which should boost the (UK) secondary market for EVs.
Honda and Mitsubishi Corporation have announced they are forming a 50/50 JV, named Altna, which will focus on developing solutions to address challenges faced by the battery value chain, energy storage, and EV ownership costs in Japan. Furthermore, Altna will try and repurpose EV batteries for battery energy storage systems (BESS). Interestingly a part of Altna’s offering will be to operate an EV battery leasing business (in Japan), where it will own the battery during the leasing period. Japan has lagged behind other countries in terms of EV adoption however the proposals and offerings set forward by this JV are quite innovative and we champion this progression.
BYD has unveiled a new economically viable electric bus model called BD11, which has been built to TfL specifications. The BD11 is allegedly competitively priced due to it not relying on 3rd parties, alongside optimising the structure of the technology thus improving space utilisation. This model aims to have a battery capacity of up to 532kWh which translates to a range of around 400 miles. Go-Ahead is rumoured to be the first buyer of this model (>100 units) however this has not been confirmed.
The EU has announced it will impose tariffs on EVs that are shipped from China, starting next month (July 4th). These levies could be as much as c48% and are dependent on how cooperative the Chinese EV companies have been (/will be) with the probe. SAIC (state-owned) will be hit hardest by these tariffs however Geely and BYD will be materially hit as well. The Kiel Institute for the World Economy has predicted these tariffs will cut imports from China by c25% which amounts to c$4bn in value. China has threatened to retaliate by imposing tariffs and/or opening investigations into (European) companies that operate in the agriculture and aviation sectors. Mr Scholz (German Chancellor), who has always been against such high tariffs, is concerned that this could escalate into a trade war and impact automakers such as Volkswagen and BMW and their sales in that region.
Toyota and Pepco (an American utility company) have announced they are collaborating on a vehicle-to-grid (V2G) project. The V2G project will utilise Toyota’s bZ4X model to investigate bidirectional power flow technology that will allow BEV owners to not only charge their EV battery but also allow it to send power back to the local energy grid. Pepco will design and evaluate this project. Essentially this project is researching charging behaviour and how EVs can send power back to the grid which could improve reliability, resilience, and lower electricity costs. From Pepco’s POV, they get to learn more about V2G and the challenges the local energy grid may face.
The Labour Party’s manifesto has set aside £500m to help facilitate the development of green hydrogen in the UK. Some of the £500m will also be invested into clean energy projects that focus on carbon capture and storage (CCS), hydrogen and marine energy. This is to ensure the UK has the long-term energy storage requirements to meet demands. This pledge also has a clause in it where the party will look to create, a publicly owned clean power company, the Great British Energy (GBE). Although industry experts have warmly received these proposals, there is a lack of a clear timeline, and many are calling for greater clarity over this.
Deals
Cardino, a German-based startup which focuses on used EVs, has announced it has raised €4m in a Seed round. Through its digital platform, the startup enables the sale of used EVs which is great news, as the secondary EV market is still in its infancy. The platform can manage all aspects of the transaction, from valuing the EV to payment processing. The capital raised will be used to expand its operations, especially in France, and enhance its platform product offerings.
Unigrid, an American-based (EV) battery (sodium-ion) startup, has announced it has raised $12m in a Series A round. This round was led by Transition VC and Ritz Venture Capital, with Union Square Ventures and Foothill Ventures also participating. Unigrid focuses on sodium-ion batteries and instead of building its own factory, it will be working with smaller battery OEMs to develop the batteries. This is a pragmatic approach and is reminiscent of TSMC’s strategy, who produce PC chips for Apple and Nvidia.
FLO, a Canadian-based EV charging network operator, has announced it has raised $136m in a Series E equity financing round. This round was led by Export Development Canada, with investors such as Investissement Québec, Business Development Bank of Canada and Energy Impact Partners also participating. The capital raised will be used to accelerate its network deployment, roll out its new ultra-DC fast chargers and further expand its footprint across North America. Bear in mind that FLO has a significant charging network across North America, and this is well-positioned to take advantage of potential policy funding stemming from BIL, CFI and NEVI.
Black Semiconductor, a German deep tech startup, has secured €254.4m in public funding, alongside raising €25.7m in an equity funding round. The public funding stems from the IPCEI ME/CT2 programme which focuses on supporting research and the first industrial deployment of microelectronics and communication technologies across the value chain. The equity round was led by Porsche Ventures and Project A Ventures. The capital raised will be used to develop its graphene chip, which can be applied to various sectors ranging from data centres to autonomous vehicles.