Ahead of the UK Low Carbon Vehicle (LCV) event, Julian Hetherington, Director of the Advanced Propulsion Centre (APC), provided an early preview of the electric and energy-efficient vehicle market outlook.
Hetherington emphasized a key shift in the auto industry's priorities, moving from reducing emissions to achieving net zero. This broader focus now encompasses not just engines and battery technology, but also materials and vehicle architecture.
The automotive sector boasts formidable R&D strength, second only to pharmaceuticals, but innovation comes with a hefty price tag. To keep momentum going, the APC, acting as a bridge between industry and government, has backed over 260 low-cost projects. More than a million vehicles on UK roads today rely on technologies supported by the APC.
"Naturally, the UK can't excel at everything," Hetherington stated. However, the companies selected by the UK government and APC for support are well-positioned to compete. While Europe's battery makers have strong design and production capabilities, they are contending with fierce competition from China.
Chinese battery firms, with their dominant market share and vast production capacity, have locked in much of the raw material supply, creating a formidable barrier for competitors. The UK, in turn, is ramping up support for its battery technology and materials sector, while keeping a close eye on hydrogen energy developments.
As the industry evolves, the total cost of ownership for electric vehicles is set to undercut that of gasoline cars. Automakers are leveraging electric platforms to drive down costs, giving consumers more budget flexibility. More efficient designs and manufacturing processes are also contributing to lower EV prices.
Battery technology continues to advance, bringing prices down while next-generation materials reshape the sector. The rise of electric vehicles is spurring investment in charging infrastructure globally, addressing consumer concerns over charging limitations.
It's not just hardware driving the shift. Software is increasingly essential, particularly in battery safety, a key concern for automakers and suppliers. AI and machine learning are being used to monitor battery health, underscoring the equal importance of both hardware and software in the electric vehicle revolution.
