Kia has the ‘secret sauce’ for affordable EVs in the US
Cheaper electric vehicles are on the way, and Kia believes it has an advantage. With its own “secret sauce,” Kia is moving to launch a series of affordable EVs in the US.
“We’re ahead of most, and we’re trying to rush out ahead because our technology will be more evolved,” Kia America COO Steve Center told Automotive News.
Kia revealed a new range of low-cost EVs during its first annual EV Day in October, including the EV2, EV3, EV4, and EV5.
With an “EV for all,” Kia plans a wide-ranging lineup with prices from $30,000 to $80,000. To accelerate sales and compete with Chinese automakers like BYD, Kia is launching smaller, more affordable EVs.
Kia has already launched the EV5 in China, with starting prices around $20,000 (149,800 yuan). However, in Australia, where it’s imported, it will cost around $40,000 (70,000 AUS).
Although Kia has not announced plans to bring the EV5 to the US, it is planning to launch several affordable EVs and believes it already has a head start.
Kia to kick off affordable EVs in the US
“You can’t just jump in and catch up. You have to have your own R&D, your own secret sauce,” Center explained. Kia believes it’s ahead with new low-cost EVs on the horizon.
Next up for launch will be the EV3, Kia’s compact electric SUV. The EV3 is a shrunken EV9, taking the design and tech of the EV9 and putting them into a smaller, more affordable package.
Like the EV9, the smaller SUV features Kia’s new “Opposites United” design with a redesigned “Tiger Face” grille and wide wheel arches.
The concept featured a minimalist interior with plant-derived materials. Although the concept shown in October had a single screen for the driver display and infotainment, the production version is expected to feature Kia’s next-gen ccNC infotainment system.
Kia’s new EV3 is expected to debut this summer or by the end of 2024, with prices starting at around $30,000. It’s also due to receive a sporty GT Line model.
We’ve seen prototypes testing as the compact electric SUV nears its official debut. The EV3 is expected to be about the size of the new Volvo EX30 or Hyundai Kona at around 170″ long, 72″ wide, and 62″ tall.
The EV4, Kia’s take on an entry-level electric sedan, is expected to follow in 2025 or 2026 with prices around $35,000. Kia says the EV4 is an “entirely new type of sedan that stands as a symbol of innovation.”
Kia has already converted its West Point, GA facility to produce its three-row EV9 electric SUV. Although EV9 models are being shipped from Korea, Kia is expected to move production to GA this summer.
The Center said the sooner lighter, higher-density energy batteries are introduced, the sooner the cost can come down, adding, “That’s the holy grail.”
Kia’s EVs built at the facility are expected to qualify for the Federal EV tax credit. “When you’re building affordable EVs in the US, the rebate will appeal more to households with less income,” Center said.
Center said EVs offer automakers a fresh start. “Just because you’re great at something else doesn’t mean you’re going to be great at EVs,” he explained.
“If someone wants an EV, and their regular brand doesn’t have it, they’re going to have to look elsewhere. Right away, they will have to explore other brands.”
Center said Kia will be selling customers their “second and third EV when some other companies finally get in the game — and they’re going to have to conquest.”
Electrek’s Take
Most automakers, including Ford, GM, Volkswagen, Rivian, and others, have announced plans to introduce low-cost EVs.
However, if Kia can launch the EV3, priced around $30,000 this year, it will have most automakers beat.
GM is launching the Chevy Equinox EV with prices as low as $34,995, yet that’s for the 1LT model, which is also expected out later this year. For now, the cheapest Equinox EV starts at $43,295. With the $7,500 tax credit, prices could fall to as low as $35,795.
Volvo also launched the EX30, starting at $34,950 in the US and €36,590 in Europe. CEO Jim Rowan expects “tremendous growth” this year as the low-cost EV rolls out.
Ford is planning a new low-cost EV platform to underpin a smaller electric pickup and SUV. The first model is due out in 2026, and prices will start around $25,000.
Rivian unveiled its smaller, cheaper R2 electric SUV last month. The electric SUV will start at around $45,000, with production slated for early 2026.
With GM and Nissan phasing out the current Chevy Bolt EV and LEAF models, two of the most affordable EVs in the US, Kia has an opportunity to take advantage.
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Gogoro, the global leader in battery-swapping for light electric vehicles like scooters and motorcycles, just can’t seem to slow down. After a week full of major news, the company is back with perhaps its biggest announcement lately: a plan for a major partnership that will see the company greatly expand the use of its swappable battery standard.
Oh, and not just for light electric vehicles anymore.
Today, Gogoro announced signing an MOU to form a new partnership with Japanese giants Sumitomo Corporation and Sumitomo Mitsui Finance and Leasing Co., Ltd. (SMFL) to accelerate Gogoro’s global business expansion. The agreement is set to provide Sumitomo and SMFL access to Gogoro’s Smart Batteries and battery-swapping system to allow the companies to expand their mobility business and second-life battery use cases.
It’s hard to overstate Sumitomo’s magnitude, owning over 900 subsidiary companies with 80,000 employees. With a reach across broad industries including automotive, transportation & construction systems, and diverse urban development, Sumitomo is poised to help drastically expand the use of Gogoro’s swappable battery standard.
Many people think of Gogoro as an electric scooter company, but Gogoro is really more of an energy platform. Sure, the company is famous for its fashion-forward and high-performance electric scooters, but the Gogoro swappable battery standard is the key to Gogoro’s success.
The batteries are designed to power not just electric scooters (either Gogoro’s own or the countless other OEMs that now build light electric vehicles powered by Gogoro batteries), but also to power many other devices. That’s why partnerships are a key part of Gogoro’s growth model, leveraging the success of the batteries in its electric scooters to position them for even more far-flung energy uses.
“Gogoro’s innovative business ecosystem is designed to create broader business partnerships and business models that were not previously possible. Today, Sumitomo and SMFL are looking to accelerate Gogoro’s global business expansion while utilizing Gogoro Smart Batteries and battery swapping to drive expansion of their own mobility business and second life battery revenue,” said Horace Luke, founder and CEO of Gogoro. “Together, Gogoro, Sumitomo and SMFL share a vision for accelerating the expansion of sustainable energy and transportation in the world’s most densely populated cities.”
“Gogoro’s potential partnership with Sumitomo and SMFL, a global leader in financing and leasing, would establish a new asset class using Gogoro smart batteries to create new business opportunities for Sumitomo and SMFL to utilize Gogoro’s batteries for expanding their mobility business as well as generating second life battery revenue,” said Bruce Aiken, CFO of Gogoro. “Amongst the many new business opportunities, this partnership would enable a new asset-light expansion model for Gogoro that doesn’t require a large upfront capital investment while increasing the financial efficiency of our new markets.”
Gogoro has been on a tear lately, expanding into new markets with both its SmartScooters and its swappable batteries. This new partnership could help expedite that expansion and open up new opportunities for those very batteries to extend their useful lives even further.
By using Big Data to intelligently charge and cycle its battery packs by monitoring dozens of parameters across millions of batteries, Gogoro has been able to pull an impressive lifespan from its more than 1.8 million battery packs and counting. When the batteries first began circulation back in 2015, Gogoro estimated that the packs would last nearly a decade. More recently, the company has pushed that estimate out to around 12 years, largely thanks to its intelligent charging capabilities and sophisticated operations management that helps optimize battery distribution and use.
But even when the batteries have finished their useful life for mobility applications, an entire range of second-life uses remain. Gogoro already has several stationary energy storage applications in use, such as powering smart parking meters and serving as backup power for traffic lights when the energy grid falls. But there are countless more examples of energy storage projects that would be ideal for such a small format and easily manageable battery packs built on a common standard.
An agreement with Sumitomo could be a key accelerator for Gogoro, as SMFL’s mid-term management plan strategy includes the realization of a battery circular economy through the creation of a battery reuse and recycling business using Gogoro’s smart batteries. According to the announcement, SMFL plans to seek new unique business opportunities using Gogoro’s smart batteries as a new asset class for mobile second-life sustainable energy usage.
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Stories we discuss in this episode (with links)
Tesla unveils new Cybertruck off-roading features, Cybertent mode, and more
NIO begins public trials of its 150 kWh semi-solid-state battery packs ahead of a full rollout
Breaking: US, other G7 countries to phase out coal by early 2030s
Tesla (TSLA) surges on reports China is approving Full Self-Driving deployment
California now has 1 EV fast charging station for every 5 gas stations
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Nevada utility NV Energy’s largest battery energy storage system sits on a former coal-fired power plant site and will save customers a lot of money.
Swiss-US battery energy storage specialist Energy Vault (NYSE: NRGV) built the 220 MW/440 MWh grid-tied Reid Gardner Battery Energy Storage System (BESS) in Moapa, Nevada, 50 miles northeast of Las Vegas. Energy Vault will maintain the system.
The new BESS is on the site of the former 557-megawatt (MW) coal-fired Reid Gardner Generating Station, which was demolished in 2019.
It’s a two-hour energy storage system that stores and dispatches excess wind and solar power. It’s charged and discharged daily and dispatches stored renewable energy at peak consumption hours to help meet demand.
NV Energy CEO Dough Cannon explained to local TV network KTNV:
The hours that [NV Energy] really get concerned about are from about 5 pm to 9 pm. Because what happens, at that point, is the solar energy has really started to ramp off as the sun’s going down. And so, we have often had to go out to the market, the energy market, and buy energy to meet the needs between 5 pm and 9 pm.
Over the last couple of years, on average, we’ve paid $250 a unit of energy during those hours. We look at a project like this, and this can deliver energy for closer to $100 an hour a unit of energy.
The Inflation Reduction Act covered 40% of the project’s $250 million cost. Cannon told KTNV that thanks to the new BESS, the utility’s customers would see a 15-20% reduction in their bills by the end of 2024.
Read more: US, other G7 countries to phase out coal by early 2030s
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