The U.S. electric vehicle (EV) industry is in a critical phase of its evolution, transitioning from a niche market to a mainstream one. While EV adoption has grown significantly in recent years, the industry now faces the complex challenges of scaling up. A recent survey conducted by Schneider Electric and ABI Research, which gathered insights from 200 automotive sector decision-makers—including Original Equipment Manufacturers (OEMs), battery manufacturers, and Charge Point Operators (CPOs)—sheds light on the primary hurdles and potential solutions for the industry to achieve its ambitious goals.
EV Adoption: A Progress Report
The industry is in broad agreement on the main factors hindering a faster rate of adoption: high prices, insufficient driving range, and issues with charging infrastructure. High prices were identified as the most significant barrier, with 36% of respondents citing it as the single most important factor and 80% ranking it in their top three.
The Critical Role of Charging Infrastructure
The lack of widespread and reliable charging infrastructure is another major obstacle to further EV adoption. The survey highlights that reliability is the key problem with American public charging networks, a view shared by both CPOs and the broader group of respondents. Poor charger reliability can lead to failed charging sessions and a poor customer experience, damaging the reputation of CPOs. To combat this, the industry must focus on several key areas:
Site Assessment and Hardware Selection:
Ensuring high uptime begins with a thorough site assessment that considers factors like network availability, environmental conditions, and necessary electrical upgrades. When selecting hardware, station owners must evaluate not just the charger’s power rating and features, but also the supplier’s reputation and service offerings.
Maintenance and Software:
Routine preventative maintenance and a rapid response to field service issues are crucial for minimizing downtime. Charger management software plays a vital role by enabling remote monitoring, troubleshooting, and software fixes. Real-time monitoring provides operators with insights into charger performance, allowing for quick issue resolution and supporting predictive maintenance to prevent unplanned outages.
For the rollout of a successful fast-charging network, collaboration with energy providers is seen as the most important factor. Fast chargers can strain the local power grid, often necessitating expensive and time-consuming upgrades. By prioritizing grid capacity during site assessments and utilizing connected smart chargers with load management systems, operators can mitigate these impacts, enhance reliability, and even reduce peak demand charges and installation costs.
Battery Technology: The Heart of the Challenge
The high cost of EVs is directly linked to the price of batteries, which can constitute 30% to 40% of the vehicle’s total cost. This also contributes to the limited range and model options available. Scaling up the U.S. battery industry faces its own set of challenges, particularly in securing the supply of raw materials and improving yield rates.
U.S. battery manufacturers are at a disadvantage compared to their more established Chinese counterparts, which have higher yield rates. This impacts the cost competitiveness of American factories. However, software solutions and digitalization can help. Power management software can optimize energy efficiency and reduce operating costs and emissions. Additionally, collecting and monitoring production data can enhance yield rates and reduce waste.
Beyond production, battery recycling presents its own set of challenges. A significant problem is the lack of “design for circularity,” meaning batteries are not designed with recycling in mind. This suggests that battery manufacturers need to do more to support the growing recycling industry. With the annual supply of scrap lithium-ion batteries expected to increase tenfold by 2035, efficient processing is essential for building a resilient mineral supply chain and ensuring sustainability. High-cost recycling processes also pose a problem, especially when raw mineral prices are low. Here again, software solutions and industrial automation are crucial for optimizing processes, reducing energy consumption, and improving safety.
The Digital Transformation of Automotive Manufacturing
The EV industry is embracing industrial digitalization to improve manufacturing efficiency. The survey found that most respondents prioritize predictive maintenance and condition monitoring (42%), as well as the use of IoT and real-time data analytics for process optimization (31%).
These technologies are closely intertwined. IoT devices allow for the early detection of machine issues and real-time monitoring of equipment performance. This enables manufacturers to anticipate failures and take corrective actions, improving efficiency in terms of quality and availability. Harnessing this data in a process management platform provides operators with actionable insights to further boost efficiency.
The industry’s reliance on data is evident in its widespread use of cloud-based platforms for data storage and accessibility. This allows for a rapid response to changes and remote access to data. Looking ahead, there are significant plans for further investment in advanced data analytics, IoT technologies, and robotics to drive data-driven manufacturing processes and predictive maintenance systems.
So, while the U.S. EV industry has made impressive strides, its future success hinges on addressing these critical challenges. To learn more on how the industry can navigate the road ahead and continue its transition toward a carbon-neutral future, download this white paper.
Meet the author:
Lynn Blake, U.S. Auto Strategy Leader, Schneider Electric
