The Rise Of Electric Vehicles - Are There Still Opportunities For Investors In The Energy Sector?

In a prior article, we pushed back at some of the more aggressive predictions being made about the potential for Transport as a Service or "TaaS" to disrupt the existing vehicle industry. In a second article, we also made some observations about the current optimism regarding the speed at which Electric Vehicles (EV) may penetrate the traditional Internal Combustion Engine or "ICE" vehicle market. We pointed out that EV technology still needs to make significant progress before EVs are likely to be widely adopted.

Nevertheless, we conceded that the market share of EVs is still likely to grow quite rapidly in the next decade. So, in this final article of our three part series, we consider the potential impact on energy markets and specifically the demand for oil (NYSEARCA:USO).

Even if TaaS does not fulfill some of the lofty expectations that now abound and individually-owned vehicles still account for a large proportion of the entire vehicle stock, many vehicle owners may still end up owning electric vehicles or EVs as opposed to ICE vehicles in the future. Thus, the outlook for oil demand in the next decade is still quite negative, regardless of whether TaaS proves to be a widespread success or not.

On the positive side however, we would also argue that oil demand will continue to grow for at least several more years even under the most optimistic scenarios for EV market penetration. At present, the total EV fleet is less than 0.5% of the total global vehicle fleet. Furthermore, the global vehicle fleet itself will probably continue to grow by around 3% per annum, being driven by still low levels of vehicle ownership in countries such as China and India.

Some back-of-the-envelope calculations suggest that total oil demand is only likely to peak around 2024/2025, even if EV market penetration of the global vehicle stock reaches 50% by 2030. This is based on a level of 1% in 2019, which is optimistic considering the cost and infrastructure requirements in developing countries. Furthermore, one must remember that transportation does not account for 100% of global oil demand and that the petrochemical sector is also an important source of oil demand, accounting for roughly 15% of all consumption.

Assuming vastly improved fuel efficiency going forward, global oil demand is still likely to grow by around 1mn bpd or 1% per annum until at least 2023/2024, even under the most optimistic scenarios for EV market penetration. We also think this scenario has a low probability at present. Consider the fact that the most economical EVs to date, namely the Chevy (NYSE:GM) Bolt and the upcoming Tesla (NASDAQ:TSLA) 3, will still cost around $35,000 per vehicle. Range is still limited to around 200 miles, half of that of conventional vehicles, and recharge times are around 30mins.

And range will remain an important consideration taking into account some 35% of all American households or 40mn take at least one annual long distance road-based vacation. A consumer can buy a BMW (OTCPK:BMWYY) 320i for the same price without the recharge hassle and double the range, or an entry level vehicle for half the price of the Bolt and the Tesla model 3. It thus becomes clear that further technological improvements will be required before mass adoption takes place.

Some point to the potential for a national network of "supercharger" infrastructure that can be deployed helping to overcome the range anxiety that consumers may have with regard to EVs. Indeed, this may help alleviate some of the concerns regarding the range limitations that EVs have, particularly if battery technology does not improve as fast as currently envisaged. However, current superchargers still take some 30min to recharge a Tesla EV, as opposed to 5 minutes for ICE vehicles.

So intuitively, in order to facilitate the same capacity utilization as the current national gasoline network, one would in theory need many more supercharger stations than gasoline stations. Nationally, in the United States, there are some 120,000 gasoline stations currently as opposed to roughly 400 supercharger stations. At between $300,000 and $400,000 to build one supercharger station, a network of 120,000 supercharger stations would cost around $40bn.

Naturally, many will point out that the supercharger network only exists to cater for long-distance driving and that most EV owners will recharge their vehicles at home overnight. This is assuming they have the ability to recharge their vehicles at home. Nevertheless, many Americans will still take a number of long distance trips per year even excluding trips taken purely for leisure or vacation.

The latest data from the Bureau of Transportation Statistics suggests total annual long-distance mileage (defined as greater than 100 miles) is roughly 760bn miles or 2bn per day. At an average recharge distance of 200 miles and assuming each supercharger can deliver 24 charges per day, we are still looking at around 420,000 superchargers or 70,000 stations assuming 6 supercharger points per station. This would still entail a total cost of around $21bn.

However, for the sake of completeness, we will assume that the optimistic scenario for EVs reaching a market share of 50% by 2030 to be accurate. In this scenario, global oil consumption will still rise from about 98mn bpd at present to a peak of around 104mn to 105mn. With existing capital investment having declined substantially over the past three years, it is doubtful that the global oil industry can meet this demand requirement without ramping up capital investment. As this is unlikely to happen at current prices, an eventual spike in prices at some point between now and 2020 is suggested.

If oil prices do spike higher before 2020, it could also be argued that many oil companies may still refrain from increasing investment in new production, given the uncertainty over the timing for peak oil demand and especially if electric vehicle sales are accelerating. This is particularly true for projects with long lead times to production and heavy upfront capital expenditure requirements. The last thing any oil executive wants is to spend $5bn on a major new project that only comes on stream in say 2024, just as oil prices start to collapse as a result of rising EV penetration.

If this is the case, it could be argued that oil prices could well spike and sustain themselves at high levels of plus $80 for several years until oil demand actually peaks. The exception may well prove to be US shale companies, which have much shorter lead times to production of typically 6-9 months. They can also quickly ramp capital investment down should prices decline sharply. Given that the majority of oil produced from a typical shale well is normally produced in the first 3 years, shale companies can easily hedge out their production during periods of high oil prices and provide an additional margin of safety.

Source: International Energy Agency

Based on this competitive advantage, one may suggest that executives at major oil companies should be looking to buy up smaller US shale producers with large reserves as opposed to investing in new long lead time projects that require a large upfront capital investment. This flexibility in production could prove to be extremely valuable even in a world post 'peak oil demand'.

Consider for a moment if oil demand does peak in say 2024 and prices collapse to $25 per barrel or lower. This would devastate many traditional oil-producing nations that rely mainly on oil revenues to sustain fiscal expenditures. Countries in the Middle East would be particularly at risk and one can only imagine the potential for socioeconomic and geopolitical risk for oil prices in a sub $25 world.

The risk of supply disruptions would simply become significant as a result of the escalation in socioeconomic and geopolitical risks. It is quite possible that for several years or even a decade after peak oil demand setting in, the oil price itself could become extremely volatile. This could see trade of between $20 and $80 per barrel as periodic supply disruptions impact global energy markets. Any kind of long-term planning by the major oil companies would be impossible in this type of environment.

The ability to ramp production from shale and hedge that production at the same time, would make it possible to profitably sustain oil production, perhaps for several more years, after peak oil demand sets in. From our perspective, although the long-term outlook for oil is negative, the one investable sector of the energy market may paradoxically be the US shale industry, despite the current negative sentiment.

If you are an executive at a major global oil company, it must surely make sense to buy up shale acreage or reserves as a flexible 'buffer' against the potential disruption and volatility which global energy markets may exhibit in the next decade.

Given the spread between natural gas prices and oil prices being currently greater than the BTU conversion spread of 6x, there would also appear to be limited downside to US natural gas prices from current levels of around $3 per MCF. Unlike oil, the future of natural gas appears to be quite secure for at least a few more decades. Demand from industry in petrochemicals and fertilizers will continue to grow, while the rise or widespread use of EVs will also increase total electricity demand.

Citing the report produced by Seba and Ariba, under a scenario where 95% of passenger miles are serviced by EVs, total electricity demand would grow incrementally by 18% over current baseline EIA projections.

With coal and nuclear still accounting for 50% of total electricity generation, the increase in total electricity consumption will leave plenty of room for growth in renewables such as solar and wind and also still accommodate future growth in electricity generation from natural gas. There are vast natural gas reserves in the US, but it remains unclear what percentage is truly economically viable below $3 per MCF. If this is the case, a long-term price of $4 per MCF, or $25 per barrel for oil on a BTU equivalent basis, would prove more realistic. This is also consistent with the long-term outlook for oil prices post a peak in oil demand.

If the worst-case scenario for oil and shale oil producers proves correct, the supply of natural gas as a by-product of oil production will also collapse and further underpin the long-term demand/supply fundamentals for natural gas. This would suggest that the most attractive shale companies to invest in right now are perhaps those with mixed or diversified portfolios of both liquids and natural gas reserves. A further margin of safety is offered by those operations with very large reserves of 20 to 30 plus years at current production levels.

Even more attractive to major oil companies would be those companies with mixed liquid/gas portfolios and large reserves, but with an inability to meaningfully ramp production due to capital and/or balance sheet constraints. Given the current negative sentiment towards these companies, there are a number that tick all these boxes. There are more importantly some concerns with large, high-quality natural gas reserves that would become very valuable if we assume a long-term equilibrium natural gas price of $4 per MCF.

More importantly there are some with large companies with high quality, natural gas reserves that would become very valuable if we assume a long-term equilibrium natural gas price of $4 per MCF. And if anything, the economics of natural gas extraction in the US, over the long term, may prove to be far more economical than oil extraction on a BTU equivalent basis.

Looking at the table below from RBN Energy, it would suggest that even without a complete narrowing in the spread between natural gas and oil prices to the suggested BTU equivalent ratio (6x), at a long-term price of $4 per MCF and $50 for oil, natural gas production would prove more rewarding in terms of total return on investment.

Assuming a natural gas price of $4 per MCF or $24 per barrel on an oil-equivalent basis as well as total lifting and capital costs of $13 per barrel of oil equivalent, natural gas companies would deliver a pre-tax or EBIT margin of nearly 50%. For oil producers, assuming a long-term oil price of $50 (optimistic if the more aggressive predictions for EV penetration prove correct), the long-term EBIT margin would only amount to 40%.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: The Rise Of Electric Vehicles - Are There Still Opportunities For Investors In The Energy Sector?

Morgan Stanley is wrong — electric cars aren’t going to take over

A prototype of the Tesla Model 3.Thomson Reuters See Also Here's why Tesla loves competition from General Motors Morgan Stanley analyst thinks gas-powered cars could be doomed — and that's great for Tesla Too many carmakers are aiming to take on Tesla

Morgan Stanley's "Global Autos & Shared Mobility" team of analysts published a research note on Tuesday highlighting numerous aspects of its overall thesis on the transformation of transportation.

They covered a lot of ground, but let's focus on what's actually its most radical prediction. 

According to lead analyst Adam Jonas and his team, Morgan Stanley is "bullish on EV penetration and universally cautious on the long-term viability of the 100-year-old internal combustion engine (ICE) ecosystem, which we believe is in its last generation," adding that "[w]e expect EVs to account for 50-60% of global light vehicle sales by 2040."

To put that prediction in context, global EV sales now account for about 1% of sales.

A key enabler is autonomous and shared mobility, as well as the arrival of an entirely new business model that stressed miles driven over units sold (basically, we go from a car or two in every driveway, used almost none of the time, to a massive fleet of self-driving electric taxis, driven almost all of the time). 

This puts the entire traditional auto industry at a massive disadvantage and presumably favors the fortunes of new players, especially tech-industry titans. (The analysts go so far as to declare that Apple is developing a car, and that the vehicle won't be powered by gas.)

Good for gas

Believe it or not, this scenario isn't a catastrophe for the oil and gas-refining business. According to Morgan Stanley, "Gas demand grows until early 2030s as miles traveled accelerates faster than EV penetration," and "[b]y 2040, gas relevance is extended and demand remains little changed from today's levels."

A pump jack is seen at sunrise near Bakersfield, California.Reuters/Lucy Nicholson

Nevertheless, the overarching thesis is that individual auto ownership is ending, along with the dominance of the gas-powered engine.

Here's a reality check on all that. True, ride-hailing services such as Uber and Lyft have in a short period created a new storyline connected to Silicon Valley. The sharing economy, through services such as Airbnb, suggest that people are aware that idle vehicles are an greatly underutilized asset. 

But it's far from clear that this story embodies a wholesale shift in consumer behavior. People continue to own stuff. And people continue to not use everything they own in the most economically advantageous manner.

Even more telling is the non-growth of the EV market, at the same time the internal-combustion market has boomed. Almost 34 million vehicles have been sold over the past two years in the US alone — and nearly all them run on gas.

Electric cars, meanwhile, have failed to launch. Tesla sales are a drop in the bucket, and it's the most successful electric carmaker around. Numerous EVs have been on sale for close to a decade now, supported by state and federal government incentives, and the results have been disappointing. 

The new Chevy Bolt EV.Hollis Johnson

That basic fact is largely what's propelling the "shared" versus "owned" debate. Consumers have had abundant opportunity to own EVs, but they've chosen not to. So for EVs to flourish, they need to not be individually owned. They need to be either shared or concentrated in large fleets, where they can overcome some of their charging issues (even a Tesla vehicle requires almost an hour to fully recharge at the fastest level, whereas any gas-powered car can be refueled in under five minutes).

Cue the major narrative shift: it won't be electric cars on their own that displace gas cars, or we'd already see more significant signs of that; rather, it will be networked EVs that do the displacing. 

Punctuated equilibrium

The advance of EVs, jerky and halting, is a good example in the industrial world of what the paleontologists Niles Eldredge and Stephen Jay Gould called "punctuated equilibrium." What has happened is that EVs have gone through stages of rapid "evolution," followed by static periods. 

The most recent boost took place from about 2007-2011, when Tesla began to gain traction and a bunch of EV startups emerged. Many traditional automakers also began developing all-electric cars at this time, as well. 

The startups died off, for the most part, and the traditional carmakers have seen limited demand. Tesla has more or less thrived, but it's also been selling high-priced luxury vehicles.

This has led to the uncomfortable realization that Tesla could survive, and that the traditional automakers can continue to tinker with their own EV designs, but the market won't be transformed. In fact, it could require a few more EV cycles before Morgan Stanley's outlook comes to pass — meaning that 50%-plus EV penetration won't arrive until well past the midpoint of the century. 

So easy.Joe Raedle/Getty Images

What's important to keep in mind here is that gasoline is easy. Once the oil is refined, it's easy to store, easy to transport, and easy to distribute. Fueling infrastructure is widespread, while electric-charging infrastructure isn't. A full tank of gas, for a hybrid gas-electric vehicle, costs about $20 and can be obtained almost everywhere, very quickly, providing another 400 miles of range. 

EVs are much better then they used to be, but they aren't even close to that.

Tesla's soon-to-launch Model 3 will be a test of Morgan Stanley's thesis; there are around 400,000 pre-orders, and if everyone buys a car, that small fleet will provide ample insight into whether EVs are really a compelling alternative to gas cars.

I don't think the Model 3 will move the needle as much as expected. Ultimately, what the pre-orders prove is that there's a lot of people who want to buy into the Tesla brand but can't, given the $100,000 average sticker price of the existing lineup.

The traditional auto industry has decided that it isn't worth it to sell those folks an EV, because all they really want is a Tesla. And the auto industry is betting that Tesla demand isn't infinite. 

If that bet pays off, then it will be a long, long time before the gas engine is wiped out.

Get the latest Tesla stock price here.

SEE ALSO: The Alfa Romeo Giulia Quadrifoglio is a 505-horsepower Italian challenge to everything BMW holds dear NOW WATCH: An electric car just set a record on the infamous Nürburgring track Loading video...
Source: Morgan Stanley is wrong — electric cars aren't going to take over

Merc-AMG Project One drivetrain – four electric motors

After a round of teasers, the Mercedes-AMG Project One hypercar project has been partially sighted – its underpinnings have been showcased just prior to this year's Nürburgring 24 Hour endurance race. Project One is about as close as one gets to a current, road-legal Formula 1 car, as it uses powertrain derived from the company's 2015 F1 racer, also powered by a 1.6 litre turbocharged V6 engine with electric drive.

Where the power unit on the W06 F1 racer it is based on revs to 13,500 rpm and idles at 4,000 rpm, the one in the road-going Project One car is pegged back to 11,000 rpm. The road-going car will also use more traditional construction for its engine, while different pistons, crankshaft and electrical systems for a thermal efficiency of 43%, Mercedes-AMG told Road&Track.

The internal combustion engine is mated to two electric motors – a 107 hp unit is charged with keeping the turbocharger spooled up on boost at all times, and another 161 hp motor is installed on the crankshaft.

Up in front, a pair of 120 hp motors drive the front axle in pure EV mode, with a projected range of around 24 km. It all comes together for a total system output of over 1,000 hp, and like the F1 car, both engine and gearbox will be a structural part of Project One's chassis.

Currently, Mercedes-AMG only have a drivetrain and a chassis mule, and the company intends to commence real-world testing as soon as possible, said Mercedes-AMG boss Tobias Moers. Once production starts, the company aims to produce the resulting Project One road car at a rate of one per day, until the final unit is delivered by end 2020. All of the projected 275 units have been spoken for.

Source: Merc-AMG Project One drivetrain – four electric motors

Electric Cars To Cost Less Than Gas Counterparts Within One Decade

Nissan LEAF and Renault ZOE – Renault predicts that overall cost-to-own for electric cars will equal that of ICE cars by the early 2020s.

Currently, electric cars are more expensive than ICE cars, but eventually, sooner than later, this will cease to be the case.

Tesla CEO Elon Musk has explained that the exit rate of battery cells manufactured at the Tesla Gigafactory are "faster than bullets from a machine gun."

Today, the debate gets sticky when you factor in EV rebates and true cost-to-own. There are so many factors, including the wide variety of electric cars and ICE vehicles.

Pit a less efficient EV (which is more expensive even with rebates) against a highly-efficient ICE car (which is likely small and cheap), factor in current gas prices, and it's not going to be cut and dry. Also, there are considerations surrounding where people charge, how many miles they drive, etc.

Rebates and all other factors aside, electric cars will be cheaper than gas cars in the near future. Not just cheaper in terms of overall cost of ownership, but cheaper as in sticker price.

Bloomberg New Energy Finance revealed new research that shows that dropping battery costs will make electric cars cheaper in the U.S. and Europe as soon as 2025. This is based on the current EV battery market, which many believe will accelerate even faster than recent estimates. Since batteries account for about 50 percent of the cost of an EV, the impact of cheaper batteries will be substantial. Bloomberg analyst, Colin McKerracher, said:

"On an upfront basis, these things will start to get cheaper and people will start to adopt them more as price parity gets closer. After that it gets even more compelling."

Renault believes that this may happen even sooner. Tesla has its own Gigafactory, which is driving battery prices down, and the company plans to build several additional battery factories. Daimler has already broken ground on a similar battery factory in Europe, and another battery factory is set to appear in Europe as well, founded by ex-Tesla executives. Gilles Normand, Renault's senior vice president for electric vehicles shared:

"We have two curves. One is EV technology cost reductions because there are more breakthroughs in the cost of technology and more volume, so the cost of EVs will go down. ICE going to go up as a result of more stringent regulations especially regarding to particulate regulations."

Source: Bloomberg

Source: Electric Cars To Cost Less Than Gas Counterparts Within One Decade

Mercedes-Benz To Unveil Electric Hatchback In Frankfurt, Arrives In 3 Years

Mercedes-Benz EQ concept aka EQ C

Mercedes-Benz is developing a second offering for its new EQ brand, which first debuted in the form of all-electric SUV called the EQ C at the Paris Motor Show.

Mercedes-Benz New EQ Brand Logo

Now, from the upcoming Frankfurt Motor Show in September, the German manufacturer will present its entry-level EQ A model, which turns out to be a hatchback.

"The new electric car concept, presently undergoing construction at Mercedes-Benz's in-house prototype workshop near its headquarters in Stuttgart, is said to preview the German car maker's planned entry-level EQ A. That model is planned to go on sale in 2020 as part of a full line-up of electric-powered models."

The EQ A apparently will be a single-motor FWD direct competitor to the BMW i3 and Volkswagen I.D., although a more premium double motor version is also under consideration.

2020 was targeted as production timing, while price is expected at around £35,000 ($45,000) in Europe.

"Secrecy surrounds the driveline layout of the EQ A, although Mercedes-Benz hints at a cheaper and simpler solution than the set-up used by the EQ C. That suggests it will receive a single front-mounted electric motor, with drive sent to the front wheels via a fixed-ratio gearbox.

A more performance-orientated set-up, with a second electric motor mounted within the rear axle assembly and providing four-wheel drive capability similar to that seen on the EQ C, is also under discussion, according to sources."

Other trademark applications secured by Mercedes-Benz for the future are EQ E and EQ S.

EQ C is to be produced in Bremen, while the future EQ E and EQ S will head to the company's Sindelfingen assembly plant; meaning that the EQ A probably will end up in Rastatt – as Daimler likes to keep its plug-in assembly footprint diverse.

source: Autocar

Source: Mercedes-Benz To Unveil Electric Hatchback In Frankfurt, Arrives In 3 Years

Plugging into the electric car charger market

More and more drivers are trading in their gas-powered vehicles in exchange for cleaner electric vehicles.

Electric cars are powered by motors that draw electricity from a rechargeable battery. Statistics show that they are roughly three times more efficient than cars with a traditional combustion (gas) engine. This, along with the long-term cost-savings benefits they offer and potential tax credits, has made electric cars a popular choice among drivers.

While there are dozens of different types of electric vehicles, nearly all of them require the use of a special charger. Once the battery dies, the driver must stop and recharge it to continue driving. This has opened the doors to a new market for electric car chargers.

The Global Electric Car Chargers Market by Manufacturers, Countries, Type and Application, Forecast to 2022 report by ReportsnReports offers an in-depth look into the global electric car chargers market. Using historical data and input from industry professionals, the report provides a detailed analysis of the electric car charger market. It highlights market size, growth rate, cost, revenue, company profiles and more.

As explained in this report, an electric car charger is a special type of charger that's designed to recharge different types of electric and gas-electric hybrid vehicles. Researchers compare it to a gas station -- only for electric vehicles instead of gas-only vehicles. Electric car chargers use either alternating current (AC) or direct current (DC), both of which are scrutinized in this report.

Some of the key vendors profiled include Chargepoint, ABB, Eaton, Leviton, Blink, Schneider Electric, Siemens, General Electric, AeroVironment, Panasonic, Chargemaster, Elektromotive, Clipper Creek, DBT CEV, Pod Point, and BYD.

The Global Electric Car Chargers Sales Market 2017 report by Wise Guy Reports is a second study of the global electric car chargers market. It provides a detailed analysis of the global electric car charger market, complete with sales, revenue, price, gross margin, growth rate and more. Published by QYResearch Group, it features 109 professionally researched and written pages, covering the global electric car charger market from all angles. Whether you currently work in the market, are thinking about working in it, or simply considering investing in the market, you should check out this report.

This report segments the global electric car chargers market by several criteria. For region, the market is segmented by the United States, China, Europe, Japan, Southeast Asia, and India. The report also segments the market by product type, and application.

Source: Plugging into the electric car charger market

BMW i5 electric car axed: reports

BMW's plans for a mass market electric car have short circuited.

According to reports that have surfaced online, the planned BMW 3-Series-sized i5 electric car has been terminated. BMW Blog, referencing several unnamed sources, claims that the German car maker has cancelled its plans for the theoretical rival to the Tesla Model 3 and instead will develop an electric drivetrain for its mainstream 3-Series.

This represents a massive turnaround of future product ideology from BMW, which late ast year announced, with much pomp and vigour, its BMW Strategy Number One Next which the iNext concept and subsequent i5 production car were supposed to be the centrepiece. 

"Our Strategy Number One Next is centred on consequent lightweight construction, alternative drivetrain technology, connectivity, autonomous driving functions and the interior of the future. The iNext will set the standard from 2021," said BMW CEO, Harald Krueger, at the time.

The move is seen as a cost saving exercise as the current i8 and i3 hybrid and electric cars utilise a unique chassis system that is both expensive and unsuitable for high-volume production. According to the reports, BMW will now focus on adapting its regular vehicle lines, like the upcoming X3, with specific EV models rather than creating a full stand-alone product line which is similar to what the brand already does with its iPerformance plug-in hybrid X5 xDrive 40e and 330e models. At BMW's annual general meeting earlier this month, Krueger said, "From 2020, we want to be able to build electric, plug-in hybrid and combustion-engine variants of each model series on the same line" hinting at the next stage in BMW's electrification plans. In a separate statement earlier this week, Krueger expanded on the BMW group's electrification plans. "The all-electric MINI and the all-electric BMW X3 will mark the beginning of the second wave of electrification for the BMW Group, benefiting from the ongoing technological progress we are making in this area." An electric X3, one of the brand's most popular models, has the potential to significantly boost the brand's electric footprint, with the BMW brand already leading the prestige segment in plug-in hybrid sales globally through the combined sales of its i8, i3 Range Extender and iPerformance 3-Series, 5-Series, 7-Series and X5 ranges.

Although an electric X3, Mini or 3-Series may not have the brand cachet and marketing pull of a totally unique product, it is the best was for BMW as a business to establish its 'e-mobility' credentials and establish itself as a market leader.

Source: BMW i5 electric car axed: reports

India's electric vehicles push likely to benefit Chinese car makers

By Aditi Shah | NEW DELHI

NEW DELHI India's ambitious plan to push electric vehicles at the expense of other technologies could benefit Chinese car makers seeking to enter the market, but is worrying established automakers in the country who have so far focused on making hybrid models.

India's most influential government think-tank unveiled a policy blueprint this month aimed at electrifying all vehicles in the country by 2032, in a move that is catching the attention of car makers that are already investing in electric technology in China such as BYD and SAIC.

The May 12 report by Niti Aayog, the planning body headed by Prime Minister Narendra Modi, recommends lower taxes and loan interest rates on electric vehicles while capping sales of petrol and diesel cars, seen as a radical shift in policy.

India also plans to impose higher taxes on hybrid vehicles compared with electric, under a new unified tax regime set to come into effect from July 1, upsetting car makers like Maruti Suzuki and Toyota Motor.

The prospect of India aggressively promoting electric vehicles was a "big opportunity", a source close to SAIC, China's biggest automaker, told Reuters.

"For a newcomer, this is a good chance to establish a modern, innovative brand image," the source said, although they added the company would need more clarity on policy before deciding whether to launch electric vehicles in India.

Earlier this year SAIC set up a local unit called MG Motor which is finalising plans to buy a car manufacturing plant in western India. A spokesman at SAIC did not comment specifically on the company's India plans.

Warren Buffett-backed BYD already builds electric buses in the country, while rival Chongqing Changan has said it may enter India by 2020.

BYD said in a statement the company would have "a lot more confidence" to engage in the Indian market if the government supported the proposed policy. The company said it would look at increasing its investment in India but did not give details on how it would expand its business and market share.

HIGH COSTS

While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy.

If so, India would be following similar moves by China, which has been aggressively pushing clean vehicle technologies. But emulating China's success could be tough.

Electric vehicles are expensive due to high battery costs, and car makers say a lack of charging stations in India could make the whole proposition unviable.

The proposed policy focuses on electric vehicles, and is likely to also include plug-in hybrids. But it overlooks conventional hybrid models already sold in India, such as Toyota's Camry sedan, Honda Motor's Accord sedan and so-called mild hybrids built by Maruti Suzuki.

Hybrids combine fossil fuel and electric power, with mild hybrids making less use of the latter.

In doubling down on electric power India would be shifting away from its previous policy, announced in 2015, that supported hybrid and electric technology.

That could delay investments in India, expected to be the world's third-largest passenger car market within the next decade, according to industry executives and analysts.

"All these policy changes will affect future products and investments," said Puneet Gupta, South Asia manager at consultant IHS Markit, adding that most car makers would need to rethink product launches, especially of hybrids.

ECONOMIC GAP

Mahindra & Mahindra is the only electric car maker in India but has struggled to ramp up sales, blaming low buyer interest and insufficient infrastructure.

Pawan Goenka, managing director at Mahindra said the company was working with the government and other private players to set up charging stations in India. Mahindra was also focusing on developing electric fleet cars and taxis, Goenka said.

The cost of setting up a car charging station in India ranges from $500 to $25,000, depending on the charging speed, according to a 2016 report by online journal IOPscience.

While the proposed policy suggests setting up battery swapping stations and using tax revenues from sales of petrol and diesel vehicles to set up charging stations, it does not specify the investment needed or whether the government would contribute.

"For full electric vehicles, the economic gap remains huge and the charging infrastructure needed does not exist," said a spokesman at Tata Motors. The company makes electric buses and is working on developing electric and hybrid cars.

DELAYED PLANS

Most automakers have focused on bringing in hybrid models that are seen as a stepping stone to electrification. Toyota recently launched its luxury hybrid brand Prius in India, while Hyundai Motor plans to debut its Ioniq hybrid sedan next year.

Maruti's parent Suzuki Motor, along with Toshiba and Denso, plans to invest 20 billion yen ($180 million) to set up a lithium ion battery plant in India which would support Maruti's plan to build more hybrids.

But the apparent sharp shift in policymakers' thinking in favor of electrification is forcing automakers like Toyota and Nissan Motor to seek more clarity before finalising future products for India, while Hyundai may delay new launches.

Toyota, the world's No. 2 carmaker by sales, had planned to have a hybrid variant for all its vehicles in India, but the company's future launches would now depend on the new policy, said Shekar Viswanathan, vice chairman of its Indian subsidiary.

Nissan, which plans to launch a hybrid SUV later this year, said in a statement it was waiting for more clarity before deciding whether to bring electric cars to India.

A plan by Hyundai to launch at least three hybrid cars in India in 2019-2020 would likely to be delayed, said a source.

Hyundai did not comment on queries related to delays.

"If the government will be aggressive on electric vehicles and not support other technologies, companies will need to rethink investments," said an executive with an Asian carmaker.

(Additional reporting by Jake Spring and Muyu Xu in Beijing and Sudarshan Varadhan in New Delhi; Editing by Euan Rocha and Alex Richardson)

Next In Technology News Apple and Nokia see deeper partnership after ending patent dispute

HELSINKI Apple has settled a patent dispute with Finnish telecom equipment maker Nokia and agreed to buy more of its network products and services, sending Nokia shares up 7 percent.

Patent plaintiffs see way around U.S. Supreme Court ruling

Corporations are cheering a U.S. Supreme Court decision limiting where they can be sued for patent infringement, but some intellectual property lawyers say loopholes in the ruling likely mean lawsuits will continue to be filed in plaintiff-friendly jurisdictions.

Brazil appeals court rules Uber driver not entitled to benefits

SAO PAULO A Brazil appeals court on Tuesday ruled that a driver working for Uber via its ride-hailing app is not an employee of the San Francisco-based company and therefore not entitled to workers' benefits, overturning an earlier lower court decision.

Source: India's electric vehicles push likely to benefit Chinese car makers

Electric Vehicle Council launches in Canberra with $400,000 grant

The Electric Vehicle Council is now 'on the map' in Australia, thanks to a heavily reported launch event this week in Canberra and the provision of a $390,000 federal grant to member organisation ClimateWorks.

The council is a national, independent advocate body, formed in 2016 through a tie-up of the smaller ACT EV Council and related parties.

Made up of representatives from Australia's academic, industry and corporate sectors, the council's members include energy companies AGL, Synergy and TransGrid; automotive brands Audi, BMW, Hyundai, Jaguar Land Rover, Mitsubishi, Nissan, Porsche, Tesla and Volkswagen; infrastructure and fleet businesses JET Charge and Lennock Fleet; not-for-profit ClimateWorks Australia; project engineering firm ITP Renewables and insurer RACV.

Notably absent from that list are Toyota and Mercedes-Benz, the former a pioneering player in the green-car market and the latter making a major push to introduce more electrified vehicles now and in the years ahead.

CarAdvice has sought comment from both, but only Toyota had had offered comment at the time of publishing.

"Whilst we don't offer either a plug-in or full-electric offering in Australia, globally, Toyota have a diverse array of drivetrain solutions either in market, or under evaluation, (including Petrol-electric Hybrid, Plug-in Hybrid, EV, Fuel Cell and of course, internal combustion engines), a spokesperson for the company said.

"We also have a selection of fully-electric urban mobility vehicles such as the i-Road concept involved in trials around the globe."

It appears that, for Toyota at least, not all companies in the EV market are eager to combine their efforts with other manufacturers.

Above: Vehicles from the supporting brands; top: Minister Paul Fletcher. 

As for the nearly $400,000 Australian Renewable Energy Agency (ARENA) grant announced this week by Minister for Energy and Environment, Josh Frydenberg, the EV Council says it will be used to promote the benefits of electrified vehicles to fleet and private buyers.

Scott Ferraro, Electric Vehicle Council secretary and ClimateWorks Australia's head of implementation, said the grant will support an education and engagement program designed to improve awareness of the benefits presented by EVs.

"Globally, the number of electric vehicles sold annually is growing rapidly. However in 2014, electric vehicle sales accounted for just 0.1 per cent of new cars sold in Australia," he said.

'This funding will enable us to work with the Electric Vehicle Council to provide more information about electric vehicles to Australian consumers and undertake research on the best policies to drive greater uptake of electric vehicles, particularly at the early stages in order to increase model choice and infrastructure.

"The council will also publish a state of electric vehicles report annually so we can monitor progress on the transition of the Australian fleet."

The grant is not enough on its own to drive major improvements to Australia's EV affordability and infrastructure, but with increased awareness could come greater public pressure on government to take action.

The Electric Vehicle Council's Chair, Behyad Jafari, said that as other industrialised markets begin to embrace EVs, Australia is being left behind.

"While the global industry grows exponentially each year, Australia continues to miss out. In the next twelve months, almost one million electric vehicles are projected to be sold, with more than $50 billion invested in the industry over the last 10 years," he said.

"Addressing the barriers preventing the mass uptake of electric vehicles in Australia requires a consistent and collaborative effort across a range of sectors.

Jafari urged action on improving the landscape for EVs in Australia, including policy for driving uptake through subsidies and other incentives, described as a short-term step "as the technology works to meet price parity". Exempting EVs from the fringe benefits tax, for example, would cut some $8000 from the cost of entry for buyers.

He added that a roadmap also needs to be established for national public charging infrastructure, with most of Australia's public points currently limited to 'level 2' outputs that force long waits.

"We welcome others from across industry, consumer groups and government to join the Electric Vehicle Council as we work to build and provide certainty for investment in the Australian electric vehicle industry."

Learn more about the Electric Vehicle Council at electricvehiclecouncil.com.au.

MORE What do you think is needed EVs to take off in Australia?
Source: Electric Vehicle Council launches in Canberra with $400,000 grant

Minister gets a buzz from electric cars

Gesturing to one of the slick, new Mitsubishi electric cars behind him, Energy and Environment Minister Josh Frydneberg has had a Back to the Future moment.

On the front lawns of Parliament House to launch the new national Electric Vehicle Council on Monday, Mr Frydneberg said he was reminded of Michael J. Fox in the hit 80s sci-fi movie series.

"Well, I think when it comes to electric vehicles it's forward to the future," he said.

"If we are able to take this initiative forward through the ministerial forum it's expected that we could see upwards of 15 per cent of new car sales in 2030 being electric vehicle car sales," he said.

The industry-led council will represent and co-ordinate the broader electric vehicle industry in Australia.

The minister also announced a $390,000 grant to encourage the uptake of electric vehicles in Australia.

"There is great momentum towards electric vehicles internationally," Mr Frydenberg said.

More than 750 000 electric vehicles were sold globally last year.

With more than 300, 000 electric vehicle plug-in stations around the world, $50 billion has been invested in the industry over the past 10 years with a 55 per cent increase in the number of electric vehicles sold over the past 12 months.

However Mr Frydenberg conceded Australia could be doing better.

In Australia, electric vehicles account for only 0.1 per cent of all new domestic vehicle sales with less than 5000 believed to be on the road.

Mutsuhiro Oshikiri, the CEO of Mitsubishi Motors Australia, said demand for electric vehicles in Australia was developing slowly.

"However we expect demand for electric vehicles to increase over the coming years as consumers and businesses proactively take steps to reduce the impact of the automobile on our environment," Mr Oshikiri said.

The CEO of AGL Energy, Andy Vesey said his company was leading the way in encouraging demand for electric vehicles across the country.

AGL Energy will purchase 36 Mitsubishi Outlander Plug-In Electric Vehicles to meet their goal of 10 per cent of their fleet consisting of electric vehicles by mid-2018.

"It's a very lonely place to be, so I challenge all commercial fleet managers and owners to match that commitment and government to match that commitment and use its buying power to start to build demand," he said.

Source: Minister gets a buzz from electric cars

California Electric Car Subsidies May Shift To Point Of Sale Subsidies

Cars

Published on May 20th, 2017 | by Steve Hanley

May 20th, 2017 by Steve Hanley 

Originally published on Gas2.

California is about to begin testing a new "point of sale" clean vehicle rebate plan in San Diego. Under the present rules, people who purchase a qualifying EV can get a check back from the state for up to $7,000, depending on their income level. California started indexing its rebate program to income level a few years ago to avoid the charge that the incentives the state was offering were mostly benefiting wealthy tech tycoons and Hollywood stars replacing their Porsches with Teslas. The state is much more interested in encouraging low-income families to give up their inefficient and pollution-belching commuter cars and drive a low- or zero-emissions (and far safer) car instead.

The problem with the current system is that the customer must first buy the car and pay for it before the rebate check goes in the mail. A point of sale plan would lower the purchase price of the car immediately and lower the monthly purchase payment right from the get go. Customers would pre-qualify for the rebate by submitting their income information in advance and getting their level of eligibility determined before they go shopping for a new vehicle.

Current data indicate only 70% of eligible California EV buyers take advantage of the existing rebate program. A point of sale system would likely increase the utilization rate. Few people would bother to get pre-qualified and then not use the funds available when they buy a car. According to a draft of the plan being circulated by CARB, the process would work like this:

The buyer submits an application with supporting documentation to the Center for Sustainable Energy.

CSE reviews the application and notifies the buyer via e-mail if it is approved. The approval would come with an expiration date.

The buyer then visits a local dealer to buy or lease an eligible vehicle. The dealer confirms eligibility online and completes the sale at the net price after the rebate is applied.

The dealer than submits all required paperwork and is reimbursed by CSE.

→ Related: US Electric Car Sales By State — Who's #1, Ohio Or California?

Reactionaries like to scream that the federal tax credit is just a taxpayer-supported giveaway to the wealthy. To be fair, it may not be the most efficient way of encouraging more Americans to drive low- and zero-emissions cars. Some suggest putting the money the government spends on the tax credit could be put to better use if it was used to build EV charging infrastructure, especially at apartment buildings and condo developments where access to charging at home is either nonexistent or severely limited.

California consistently leads the rest of the nation in pushing for low emissions transportation. The new point of sale rebate program should begin in San Diego later this year. The data the state collects from that pilot program could lead to changes in the EV rebate program statewide and that would likely have an impact on other states as well.

Source: Cars Direct | Photo Credit: Kyle Field / CleanTechnica

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Tags: California, california electric cars, california electric vehicles, California EV subsidies, EV subsidies

About the Author

Steve Hanley writes about the interface between technology and sustainability from his home in Rhode Island. You can follow him on Google + and on Twitter.

Source: California Electric Car Subsidies May Shift To Point Of Sale Subsidies

My Electric Bike is Not ‘Cheating.’ And It Could Replace Cars for Millions of People

Learning to Ride a Bike via Wikimedia This story was funded by Longreads Members Join and help support great storytelling

"Hey, no fair! You're cheating!"

The guy was wrapped head to toe in black Lycra. He had clip-in cleats and a racing helmet. I was wearing a skirt and blue suede shoes. He was annoyed because I'd passed him. He was riding hard, I could see his effort and as I pulled out on the left, I could hear him breathing.

This stretch of road doesn't look like much, but it's an uphill grade. When I'm heading into town, I hit it from a right turn or a full stop, both of which kill my momentum. It's nowhere near the gut emptying climb before you reach my house, but it's not a coast, either. Road bike guy had probably come from the park at sea level; he'd likely been climbing for a mile already.

There would be no denying the guy was stronger than I am. I put out my back and ate my feelings the better part of the winter. He'd drop me in a second were we on the same ride.

But we weren't. He was training on his skinny tire racing rig, I was on my electric assist commuter bike.

I turned to look back at him. "I'm riding a bike," I said. "That's not cheating."

"Argh," he growled "okay, okay."

"Would you rather I was driving a car?" I asked.

"ARGH," he growled again, "You're right, I guess…"

I waved, and then, he was well behind me. I had to be at a meeting in 45 minutes, I didn't have time to talk bicycle politics with Lycra guy. Plus, I like to think he got my point.

§

I've been riding an electric about three years now. I'm on my third model. I got the first one on clearance at a bike shop that was going out of business. The bike was supposed to take the pain out of my commute, but the battery would not hold a charge for long enough. I'd get six blocks from home and have to drag 50 pounds of machinery up that steep hill. Eventually, I put that bike on Craigslist and got a newer model, an equally heavy cruiser with fat tires—but more range. I put saddlebags on it and rode it everywhere including commuting 18 miles round trip into downtown Seattle rain, or shine. The weather could be a burden some days but the ride itself never was.

This spring I had a "friends and family" hookup on a European electric bike, designed explicitly for commuting. It came with all the stuff—lights, fenders, a rack for your panniers, there's even a bell bolted to the handlebars. It's got skinner tires than my cruiser and a control panel that tells me that I hit 30 miles an hour on that one long downhill stretch past the Luna Park, the kitschy diner with the sweetheart tattooed waitresses. That's the bike I was riding when, dressed in a skirt and blue suede shoes, I passed the roadie in black Lycra.

I have been that guy. Kind of. I didn't own a car. I rode a bike everywhere—I'm not exaggerating, I do mean everywhere, and sometimes, on the weekends, I would chew up 50 miles of road just because the weather was nice. I was always in cleats and bike shorts, my body fat was practically nonexistent, I ate like a teenage boy; it was awesome.

And then I crossed age 35, and then 40, and then this is a story you don't need me to tell you. I began working primarily at home, and I moved to the top of a stupid hill. So there I was at home, eating snacks and not going anywhere and generally becoming spongy and middle-aged and honestly, kind of lazy. I admit it.

I tried for a while to ride. I'd bust out my sturdy old commuter, the same bike I'd logged 100 plus miles a week on. I'd ride into downtown Seattle for work, and then, on the ride home, I'd quit at a place where I could load my bike onto the bus for the last brutal uphill grade. The bike racks are great—I'm glad they exist—though they're a hassle for a short person with weak upper body strength. Sometimes, they'd be full and I'd have to wait for the next bus, and then the next.

I gave up. It wasn't fun. Riding a bike should be fun.

Everything changed when I shifted to an electric bike. If you haven't ridden an e-bike, you might think it's a scooter masquerading as a bike. There are models that work that way, but they also have a mode called "pedal assist." Maybe you remember learning to ride as a kid. Some patient adult ran along with you, holding you upright. They pushed you off and you felt the momentum behind you as you launched into the world of feeling the freedom that is riding a bike. That's how riding an electric bike feels—only it's the bike's motor that gives you the momentum, the whoosh feeling of moving forward, gravity on your side. Electricity made riding my bike all about that freedom again, and not all about fitness. Or my lack thereof.

My electric bike hasn't replaced my road bike as much as it's replaced my car. I am rarely too tired to run to the post office or down to the supermarket—it's at the bottom of that hill—to get milk. When I need to head downtown for a meeting, I ride, knowing I won't be wrung out and sweaty on arrival. On a gorgeous spring evening, I rode my bike to the bar to meet a friend for drinks. And yeah, I had to drink in moderation, but I have to do this if I drive, too.

And my bike, it counts. Literally—there's a bike counter on the bridge I cross to get into downtown, and it registers one more rider every time I roll past it. More bikes means more infrastructure for cyclists. More infrastructure for cyclist means riding a bike is easier and safer. Easier and safer cycling means more bikes. More bikes mean fewer cars. I think we can all agree that fewer cars on the road are a good thing.

Don't shame my electric ride. Without it, I'm another anonymous driver taking up space and fuel and resources that could be used to promote the freedom of riding a bike. We're not on the same ride, road bike guy, but we are on the same road—and we both want to make it better.

§

1. "Murder Machines: Why Cars Will Kill 30,000 Americans This Year" (Hunter Oatman-Stanford, Collectors Weekly, March 2014)

A bump to this previously featured piece at Collector's Weekly. Pedestrians and cyclists haven't always been second-class citizens on the road. But undoing years of car-first thinking has been fraught with conflict.

As cities attempt to undo years of car-oriented development by rebuilding streets that better incorporate public transit, bicycle facilities, and pedestrian needs, the existing bias towards automobiles is making the fight to transform streets just as intense as when cars first arrived in the urban landscape. "The fact that changes like redesigning streets for bike lanes set off such strong reactions today is a great analogy to what was going on in the '20s," says Fried. "There's a huge status-quo bias that's inherent in human nature. While I think the changes today are much more beneficial than what was done 80 years ago, the fact that they're jarring to people comes from the same place. People are very comfortable with things the way they are."

2. Streetfighting woman: inside the story of how cycling changed New York (Peter Walker, The Guardian, March 2016)

As New York City's former Transportation Commissioner, Janette Sadik-Khan helped reclaim 400 miles of city streets for bike paths. The Guardian profiled her work.

Urban transport is, Sadik-Khan argues, amid a "Copernican revolution" in which streets are remodelled around human beings, whether walking, cycling or on buses, rather than alone inside a speeding metal box.

"In the United States we spent the last century building our cities around the car, but we damaged our cities in the process and were really getting diminishing returns on that investment," she said.

"If city residents don't have a choice but to drive everywhere then our cities don't stand a chance of surviving in this century. So we really do need to provide new choices for people to get around. We need to face the fact that the way our streets are designed has, in the past, made the decision for its residents."

The intention under Bloomberg, she says, was "kind of flipping the script in how our streets were designed and who are they designed for".

3.What I Learned Living One Year Without a Car In Seattle (Sara Bernard, Seattle Weekly, May 2017)

It's not easy to give up your car, especially in a place like Seattle where the weather is often bad, the hills are steep, and our public transit leaves much to be desired. Sara Bernard admits that she doesn't always love the ride.

When I had a car, I'd often drive to Olympia on Friday evenings to visit friends. The traffic was excruciating. I always crossed my fingers that maybe, just maybe, it wouldn't be so bad this time, and it never worked. I'd always be stuck in a red-taillight-hued crawl for significant chunks of the drive, and it rarely took less than two and a half hours (without traffic, it should be about an hour and 15 minutes). I'd always arrive stiff-necked and agitated. When I no longer had a car, I learned that an express bus goes to Olympia for $3.75. I'd gaze out the window, breathe deeply, and listen to podcasts. It took two hours, but then when had a Friday-evening drive ever taken less than two hours?

For me, then, moving from car-lite to car-free was not really that painful. I've stood in the cold for 30 minutes waiting for a bus and been really, really mad about it. I've biked in the driving rain countless times, and, yes, I truly and desperately hate it—to-the-point-of-tears hate it. But somehow that soaking misery is not quite enough to make me want to spend thousands on a car, which, now that I don't have one, seems like an utterly insane sum.

Source: My Electric Bike is Not 'Cheating.' And It Could Replace Cars for Millions of People

Glencore CEO says Electric Cars will Boost Copper Demand

The electric car revolution has market participants focused on lithium, cobalt and graphite, all of which are key components of lithium-ion batteries. But how much will increasing demand for electric vehicles (EVs) impact copper prices?

According to Ivan Glasenberg, CEO of Glencore (LSE:GLEN), the world's third-largest producer of copper, the rise of EVs will significantly boost demand for lithium, as well as other metals like copper, in the coming decades.

Why? EVs require more copper wiring than standard internal combustion engines. In fact, while conventional cars typically contain about 20 kilograms of copper, for EVs the copper load is about three to four times that amount.

And according to Glasenberg, copper demand from the EV sector could increase soon. He told investors at an industry conference in Barcelona on Tuesday (May 15) that "the electric vehicle revolution is happening and its impact is likely to be felt faster than expected."

Glasenberg is not the only one who is optimistic about the impact of EVs on future copper demand. Last year, Jean-Sebastien Jacques, CEO of global mining group Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO), another major copper producer, said he expects demand for copper to rise as EVs take a growing share of the market.

"With 90 or more kilos of copper used in a full electric vehicle — three to four times more copper than used in a gas-powered car — it is clear to see the positive impact the use of electric vehicles could have on copper demand," he said.

Similarly, BHP's (ASX:BHP,LSE:BLT,NYSE:BHP) Huw McKay, vice president of market analysis and economics, has called for a big boost in copper demand from the EV sector.

"Building the EV fleet will use about 11 million tonnes of copper. Subtract the amount that would have been used in the conventional vehicles 'displaced' by EVs, and that figure comes down to about 8.5 million tonnes of genuine new demand — equivalent to more than a third of total global copper demand today," he commented recently.

Electric cars currently make up about 1 percent of new global vehicle sales, but should account for over 35 percent of sales by 2040, according to Bloomberg New Energy Finance.

Chart via Bloomberg.

In Europe, sales of alternative-fuel models, such as fully electric cars and hybrid vehicles, jumped 36 percent in the first quarter of 2017, to 235,438 vehicles, according to the European Automobile Manufacturers' Association.

While that's impressive, the biggest increase in EV demand will come from China, says a report from Germany's University of Duisberg-Essen's Center for Automotive Research.

"As early as 2020, we expect annual sales of 4 million of new electric cars in China. The state-planned electric car quotas will give important impetus. However market share will accelerate from 2020 and as a result, we predict a 30 percent market share of new electric vehicles in China by 2025," the report states.

There's no doubt that the EV boom is already on its way, and together with metals such as lithium, cobalt and graphite, copper seems to have a bright future ahead.

Don't forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Source: Glencore CEO says Electric Cars will Boost Copper Demand

The day I drove the Nismo Leaf RC electric racing car

See the Nissan Leaf Nismo RC go up the hill at the Goodwood Festival of Speed (2011).

 

Nissan New Zealand rolled out a few surprises at the launch of its high-performance Nismo brand in May.

There was the very expensive and specialised GT-R Nismo road car, the GT-R GT3 racing car of Clark Proctor and the Nissan-sponsored R35 GT-R drift machine of Darren Kelly.

And then there was this thing: the Leaf Nismo RC, a very rare "racing" version of everybody's automotive eco-hero, the Leaf hatchback.

DAVID LINKLATER/FAIRFAX NZ

Leaf Nismo at Hampton Downs. Close to a track, quite a long way away from a power point.

Perhaps even more surprising was that in a quiet moment I was ushered to a closed-off area of the Hampton Downs circuit by keeper of the Leaf, Mr Proctor, and let loose. I'd love to show you a picture of Proctor with the car, but he adopted a threatening pose and said: "Don't you photograph me with this thing. I'm a petrolhead."

READ MORE* Nissan launches Nismo in New Zealand* See the action at Leadfoot Festival 2017* Electric supercar smashes Nurburgring record

DAVID LINKLATER/FAIRFAX NZ

So you flick a switch to go forward and... that's it really. Assuming you've been able to squeeze in, that is.

Indeed. Although he did pilot the Leaf up the driveway at the Leadfoot Festival earlier this year, which was the main reason for the vehicle's trip to NZ. It's hung around for promotional duties, but as you read this it'll be on its way back to head office in Japan.

Nismo built just six examples of the RC back in 2011, mainly to throw a glamorous light on its Leaf electric vehicle (EV) and possibly because somebody thought it would be funny. Although it is a racing car by design (it's certainly not road legal), it doesn't qualify for any particular series. But it has appeared on-track around the world at many festivals and automotive events over the past six years.

The Leaf RC does illustrate that racing cars are about a lot more than just a powerful engine, because it has a standard Leaf road-car (2011-model of course) electric motor and lithium battery pack. But it's mounted in the back, driving the rear wheels, and despite the Leafy lights front and rear, the entire body structure and carbon-fibre chassis is unique to this car.

DAVID LINKLATER/FAIRFAX NZ

Feels like a real racing car in the corners. Just not that fast in a straight line...

Is it quick? No. Is it quicker than a standard Leaf? Of course. It's 40 per cent lighter than the road car (around 940kg) and can hit 100kmh in 6.8 seconds.

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You have to insert yourself over an enormous carbon-fibre sill and into the low-slung cabin with no regard for grace, and of course the car is fully kitted out with racing seats and harnesses.

But starting the RC is not race-car complicated: you flick a switch and it simply sits there, silently ready to go. I can safely boast I never missed a gear change around Hampton Downs, because the RC only has one. Gear that is.

DAVID LINKLATER/FAIRFAX NZ

How low can you go? Nismo RC still looks like a Leaf. But a squashed Leaf.

More to the point, it feels like a racing car when you get out on the track. The steering provides a direct line to the texture of the tarmac, there's a constant tension between g-force and the grippy rubber and you can't help but focus intently on car and track.

Proctor's warning about the RC's handling might have had something to do with that: "Don't turn in too aggressively, because the rear will snap into oversteer."

It's surely the world's loudest EV. There's absolutely no sound-deadening and the deafening soundtrack of the electric motor right behind your brain is accompanied by a rush of wind noise and the spray of circuit-rubber on the carbon underside. Who'd have thought a Leaf could offer so much drama?

DAVID LINKLATER/FAIRFAX NZ

Leaf Nismo RC is built around a proper carbon-fibre racing tub.

It's not at its best on a long, fast circuit: top speed is just 150kmh.

But it the RC does have the right stuff for a tight track or hillclimb. Its duties at Leadfoot were of a demonstration than competitive nature, but with Proctor at the wheel the Nissan people reckon it was running at a time that would put it in top-10 territory.

It was certainly spectacular to see and hear: the sci-fi whine of the electric motoring was punctuated by crashes and scrapes as the low-slung Leaf bottomed out up Steve Millen's driveway.

DAVID LINKLATER/FAIRFAX NZ

From this angle you'd almost mistake it for a serious racing car. Top speed: 150kmh.

Range anxiety is always the thing with EVs though, right?

With a full battery the Nismo RC will run for about 20 minutes at race speed, but you can pump 80 per cent back in on a DC fast charger in less than half an hour. Admittedly, that's quite a long pit stop.

The great shame is that it's not road-registered. Because one of the great annoyances when you're driving an electric car is rolling up to a DC fast-charging station and finding a nerd (that's my trademark collective term) of Leafs queued up at the electric bowser. Happens a lot; would love to arrive in this thing.

 - Stuff

Source: The day I drove the Nismo Leaf RC electric racing car

DNA Money Edit: Focus on electric vehicles a step in right direction

Union minister Nitin Gadkari's announcement on Monday that the government will be ready with electric vehicle policy by December for promoting eco-friendly vehicles is a step in the right direction. The minister said the pilot project of electric vehicle transportation is ready to be launched in Nagpur on May 26, which will include 200 electric taxis and an electric bus which may be replicated by other cities.

According to industry estimates, the adoption of electric and shared vehicles could save about $60 billion in fuel cost to the country which has so far been spending a considerable chunk of its foreign exchange over it. The move is likely to bring down over 1 gigatonne of carbon emission by the end of next decade. A report by government think tank Niti Aayog estimates that India can conservatively save up to 64% of anticipated passenger mobility-related energy demand and 37% of carbon emissions by 2030. At current oil prices, this would imply a net usual fuel cost saving of approximately 3.9 lakh crore by 2030, the report said.

Though certain issues like lack of related infrastructure and awareness remain a cause of concern, the automobile industry is already looking with a lot of hope. As in minister's own words, a considerable number of companies have already shown interest in investing in electric vehicles and the related infrastructure.

Also, the decision by the Supreme Court of India in March-end, when it declared banning of BS-III vehicles by the end of March 2017 came as a shot in the arm to combat the polluting technology and jump to the cleaner ones. The court order has also given a strong signal to those automobile companies which were taking the emission norms lightly and were dilly-dallying the introduction of BS-IV vehicles in the market.

Source: DNA Money Edit: Focus on electric vehicles a step in right direction

2020 BMW 4-Series Electric GT To Challenge Tesla Model 3

14 hours ago by Adrian Padeanu

BMW 3 Series Gt Facelift

It might arrive at the end of the decade and go after the Tesla Model 3.

Much like the oddball BMW 5 Series Gran Turismo is expected to make the transition to the 6 Series family for its new generation, a new report indicates the same thing will happen to the smaller 3 Series GT by being promoted to the 4 Series lineup. In addition, Autocar has it on good authority Bavaria's five-door liftback will also spawn a pure electric version less than a year after the launch of the conventionally powered models set for 2019.

The 2020 4 Series GT in zero-emissions guise will be positioned as a direct rival for the Tesla Model 3 and will provide a range of at least 311 miles (500 kilometers) between two charges. It's going to need a 90-kWh lithium-ion battery pack to do that, but the capacity might drop to 70 kWh until the car's launch thanks to progresses projected to be made in cell performance.

Speaking of performance, BMW wants the all-electric 4 Series GT to be just as quick and fast as today's 313-hp 335d xDrive, so expect the 0-60 mph (0-96 kph) run to take somewhere in the region of 4.9 seconds and top speed to stand at about 155 mph (250 kph).

BMW 3 Series Gt Facelift

Interestingly, the report goes on to specify the arrival of the 4 Series GT will spell the end of the 4 Series Gran Coupe, much like the aforementioned 6 Series GT will allegedly kill the 6 Series Gran Coupe. This decision has allegedly been taken because the 4 Series GC is a "slow-selling" car, but that's not actually true. In fact, it's the most popular model in the family, accounting for 54 percent of all 4 Series global sales.

It would surely be sad to see the 4 Series GC go since it's arguably one of the prettiest BMWs on sale today. It's also more practical than the regular 3 Series Sedan thanks to its liftback opening and it actually has a bigger cargo capacity when the rear seats are folded.

We should point out the latest (unconfirmed) intel concerning the 3 Series GT's faith is a complete contradiction of a previous report from the beginning of the year. BMWBLOG said the GT won't actually live to see a new generation and the sleek GC will take its place in the lineup.

Seeing as how the Gran Coupe is outselling both the 4 Series Coupe and Convertible combined, why would they axe it? It would make more sense to just pull the plug on the GT, right?

Source: Autocar

Tags: bmw, BMW 4-Series, bmw 4-series gt, bmw electric gt, bmw gt

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Source: 2020 BMW 4-Series Electric GT To Challenge Tesla Model 3

BMW Says “We’re In The Midst Of An Electric Assault” From Tesla

12 hours ago by Eric Loveday

BMW i3

BMW fears Tesla and its CEO Elon Musk.

So much so that the automaker is now hosting meetings that are razor-focused on Tesla, according to Bloomberg.

Tesla CEO Elon Musk (Image Credit; flickr via Brad Holt)

Bloomberg states:

"Inside a bright auditorium at an abandoned airfield near Munich, rows of men and women gaze at images flashing by on a giant screen: a Mercedes sedan; Porsche and Jaguar SUVs; the face of Elon Musk. "We're in the midst of an electric assault," the presenter intones as the Tesla Inc. chief's photo pops up. "This must be taken very seriously."

The audience is BMW employees. The focus is electric vehicles. The main rivals include Tesla and Mercedes-benz.

Bloomberg adds:

"The takeaway: The market is shifting in ways that were unimaginable just a few years ago, and BMW must adapt. The subtext is a recognition that the company has gone from leader to laggard. For years, it set the benchmark in luxury, but it needs to hit the accelerator to fend off resurgent rivals such as Mercedes-Benz and new competitors like Tesla. "BMW is falling behind in electrics," says Ingo Speich, a fund manager at Union Investment, which owns almost 1 percent of the company."

It's hard to say that BMW is behind in the plug-in vehicle space. The automaker has numerous plug-in hybrids on the market, but just one pure electric vehicle. Perhaps that's why the focus is on Tesla?

BMW CEO Harald Krueger is behind this fear of Tesla approach. BMW itself has seen revenue and profits soar in recent years, so financial concerns are not what's pushing the shift to electric cars. It's more or less driven by BMW's desire to always lead the way, which it doesn't do in the electric vehicle segment.

Jürgen Pieper, an analyst at Bankhaus Metzler in Frankfurt, stated:

 "BMW has lost its leadership in innovation. It's not brave enough to get into pioneering projects and do something really new."

Unfortunately, BMW doesn't seem to have concrete plans for a next pure electric vehicle until 2019 or later. Maybe as late as 2021, in fact.

Source: Bloomberg

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Source: BMW Says "We're In The Midst Of An Electric Assault" From Tesla

BMW 4-series GT electric in the works

1photo

BMW 4-series

May 13, 2017

A major realignment of BMW's strategy is set to result in electric versions of up to three models in its current line-up — including a secret zero-emissions variant of the upcoming 4-series GT — alongside new and updated versions of its dedicated electric 'i' brand models within the next three years.

While the new 4-series GT is set to be launched internationally in petrol, electric and plug-in hybrid variants in 2019, the battery-powered variant is tentatively scheduled to go on sale in international markets in 2020. It is one of a raft of models to be based on the newly developed underpinnings of the eighth-generation 3-series, according to highly placed insiders at the German carmaker.

Intended to compete with the Tesla Model 3, the electric 4-series GT has been conceived to offer performance on par with the fastest of today's 3-series GT models – the 321hp 335d GT – together with an overall range of up to 500km.

BMW is weighing up two electric driveline options for its new Model 3 rival, with a decision expected by the end of this year prior to the construction of road-going prototypes early next year.

The first driveline uses a front-mounted electric motor in combination with a fixed-ratio gearbox and so-called electric propeller shaft to channel drive to the rear wheels. This layout would provide the new model with traditional BMW traits and, according to at least one of our sister publication Autocar UK's sources, the best possible weight distribution.

The second, more complex and costly, solution proposes the use of two electric motors – one mounted up front, driving the front wheels and a second at the rear within the axle assembly to drive the rear wheels. Similar to the system that is set to appear on the electric-powered X3, it offers the choice between front- and four-wheel drive, depending on the drive mode selected.

BMW's first battery-powered version of an existing standard model will be a zero-emission Mini hatchback, due to launch internationally next year. That will be followed by an electric variant of the upcoming third-generation X3 in 2019.

Although the carmaker is banking on the Mini Cooper E and X3 Electric to extend its electric car sales in the short term, it is the new 4-series GT Electric that BMW chairman, Harald Krüger, considers key to the firm's long-term plans.

We bring you all you need to know about the Hyundai Xcent facelift and the all-new Swift Dzire, along with a WR-V vs Vitara Brezza vs i20 Active shootout, and plenty more this month.What's in this issue? comments powered by Disqus
Source: BMW 4-series GT electric in the works