Next-gen EVs will be cheaper to produce than gas cars by 2027
In three short years, battery electric vehicles will be cheaper to produce than ICE vehicles of the same size due to improved manufacturing methods – at least that’s the latest prediction from market research firm Gartner. Of course, those gains may be lost to the rising price of EV repairs.
Gartner predicts, too, that by 2027 15% of EV companies founded since the last decade will be acquired or bankrupt. “This does not mean the EV sector is crumbling,” said Pedro Pacheco, vice president of research at Gartner. “It is simply entering a new phase where companies with the best products and services will win over the remaining.” Of course, at least 18 EV and battery startups that went public in recent years and attracted huge investments are now struggling for cash, with plenty going belly up, including Lordstown Motors and Proterra.
Still, new innovations will push BEV price down, Gartner states. “New OEM incumbents want to heavily redefine the status quo in automotive,” he added. “They brought new innovations that simplify production costs such as centralized vehicle architecture or the introduction of gigacastings that help reduce manufacturing cost and assembly time, which legacy automakers had no choice to adopt to survive.”
By 2027, next-gen BEVs will be cheaper to make than comparable ICE vehicles, with production costs dropping faster than battery costs. But there’s a rub: Repair costs will be more expensive, Gartner says. By 2027, it predicts that the average cost of an EV body and battery “serious accident repair” will increase by 30%.
That means that crashed or damaged cars are more likely to be a total write-off since the repair costs will outweigh residual value, Gartner said. Plus, more expensive crash repairs may lead to pricier insurance premiums or even the refusal of insurance companies to cover particular car models. All this, of course, could incite consumer backlash if reductions in production costs come at the expense of higher repair costs, Gartner warns.
Still, things are looking up for the EV world, Gartner says, with market penetration predicted to grow this year despite all the doom and gloom we’re reading these days. EV shipments are estimated to reach 184. million units this year, and 20.6 million units in 2025. But the mood is changing, less “gold rush” and more “survival of the fittest,” Gartner says.
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Logo of Aramco, officially the Saudi Arabian Oil Group, Saudi petroleum and natural gas company, seen on the second day of the 24th World Petroleum Congress at the Big 4 Building at Stampede Park, on September 18, 2023, in Calgary, Canada.
Artur Widak | Nurphoto | Getty Images
Saudi state oil giant Aramco commenced its secondary public offering on Sunday as the company looks to raise in the region of $12 billion.
Books opened early Sunday morning offering a price range between 26.70 ($7.12) and 29 Saudi riyals per share. Aramco on Thursday announced its plan to sell 1.545 billion shares — a stake of around 0.64%. At the midpoint of that range, the sale would total around $11.5 billion but could eventually reach up to $13.1 billion.
Four more banks were added to the share offering, Reuters reported on Sunday, including Credit Suisse Saudi Arabia and BNP Paribas.
The share sale is the company’s second, after Aramco first entered public markets in 2019 and offered 1.5% of the company to investors. That sale raised a record $29.4 billion, history’s largest IPO to date. Aramco is the world’s largest oil company in terms of both daily crude production and market cap.
The latest offering comes at an opportune time for the kingdom, which in early May chalked its sixth consecutive quarterly budget deficit amid high spending on multitrillion-dollar megaprojects and simultaneous lower oil revenues.
But economists note that even a financial windfall from another Aramco stock sale will barely scratch the surface of the costs of Saudi Arabia’s Vision 2030 diversification plans, which — including giga projects like entirely new cities and all of the infrastructure that entails — are projected to cost more than a trillion dollars.
— CNBC’s Ruxandra Iordache contributed to this report.
American truck brand Peterbilt has announced its biggest electric semi sale to date – with Swedish transport company Einride AB ordering 150 of the company’s 579EV BEV trucks.
Einride is known for its “Freight Capacity as a Service” offerings that transport customers with a managed, low-risk way to transition to zero-emission transportation. Integrating electric and autonomous vehicles, charging depot infrastructure, and their proprietary digital freight platform, Einride Saga.
Einride has been operating large-scale semi fleets internationally since 2020, setting the standard for sustainable logistics along the way. This fleet of new Peterbilt electric vehicles will service Einride’s North America customers.
“We are proud to announce this partnership with Peterbilt and Rush Peterbilt Truck Centers as we combine our technology platform with their premium hardware to provide a market leading offering as we collaborate on the future of electric freight,” said Niklas Reinedahl, general manager North America at Einride. “Bringing new technology to market is imperative to enabling the switch to electric freight operations and we look forward to seeing this further scale Einride’s footprint in the market.”
Peterbilt’s 579EV class 8 semi has an 82,000 lb. GVWR and a 670 peak hp (536 continuous) electric motor. Its 400 kWh battery is good for 150 miles of range, and can be fully recharged in about 3 hours on a DC fast charger.
“Peterbilt is a leader in commercial vehicle electrification and offers the industry’s most complete lineup of electric vehicles. Our focus on creating reliable zero emissions solutions enable Einride to electrify end-user fleets and support reducing tailpipe emissions in the transportation industry,” said Jason Skoog, Peterbilt general manager and PACCAR vice president. “The Model 579EV is an example of that focus and is the flagship of the Peterbilt electric vehicle lineup.”
Electrek’s Take
Einride is making big moves on the international scene, so seeing them ramp up their US business is great news for the American trucking business. And, while I’m admittedly surprised that a Swedish company like Einride would opt for a Peterbilt instead of a Volvo fleet, Petes are great trucks, and PACCAR won’t let them down.
SOURCE | IMAGES: Peterbilt.
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In a bid to help the city of Kingston, Ontario achieve its sustainability goals, town leaders ordered two Mack LR Electric refuse models – the first two BEVs in its refuse fleet.
The City of Kingston developed a strategic plan for 2023-26 on its way to net-zero emissions by 2040. Part of that plan “to lead environmental stewardship” involve reducing carbon emissions from city operations with a comprehensive zero-emission fleet transition plan.
“We are excited for the opportunity to utilize the electric refuse trucks as some of our first ASL vehicles,” explains Karen Santucci, director, Public Works and Solid waste for the City of Kingston. “Increased safety for staff combined with a more environmentally friendly truck, offer benefits to both our staff and our residents.”
The city’s current refuse fleet currently includes 14 garbage trucks, seven recyclers, and two medium-duty packers. But while the Mack LR Electric models will be the first BEVs in the refuse fleet, Kingston also has two electric transit buses, six electric ice re-surfacers, and 35 light-duty BEVs and PHEVs in operation – so it’s well on its way towards full fleet electrification.
To support those electrification efforts, Kingston is deploying two of Mack Trucks’ 50kW Heliox chargers, with additional plans to deploy a 150 kW DCFC at their Transit Bus Depot.
The trucks themselves are among the first examples of the next-generation Mack LR Electrics to ship with 376 kWh NMC (Nickel Manganese Cobalt Oxide) lithium-ion batteries – which promise 42 percent more energy and increased range than before. Two electric motors produce 448 continuous horsepower and a staggering 4,051 lb-ft of torque from 0 RPM.
Electrek’s Take
Look, there is absolutely zero chance that I’ll be able to remain objective about anything that’s putting down more than four thousand lb-ft of torque. Make that thing quieter, cleaner, and generally better for me and my community, and there’s even less of a chance of me saying anything critical about it.
Here’s hoping more cities go electric rather sooner than later.
SOURCE | IMAGES: Mack Trucks.
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