As the arrival of sustainable mobility and electric cars, many are wondering if the automotive industry could really be revolutionized in its ecosystem. Let's try to understand how quickly this revolution can be scaled.

The Automotive sector, in the last three years, has been at the center of the total revolution of sustainable mobility. Automotive manufacturers are in fact increasingly predisposed to create vehicles and cars linked to electric traction.

It is a world in complete evolution, and therefore it also needs technical time to be revolutionized.

Currently, the global economy is very intolerant of technological expectations, as we are increasingly inclined to ask for everything immediately. The revolution we are experiencing is extremely impactful and fundamentally enormous within the automotive economy of the last century.

At the beginning of the twentieth century, the first Ford Model T came out, via the first production line. Over time, these cars have been refined and optimized, including on the production side. Currently, many investments are coming in new technologies, both in the form of startups, but also through traditional automotive houses.

About half of global investments are currently placed on electric cars, and this is a signal and an alarm bell for all those who are interested in understanding how the Automotive market is moving.

According to what is learned online, the sales of traditional cars will have to face a decrease by the market from 2025 onwards. The markets are very attentive to the speech of the electric, and the latter currently manages to bring as much interest to the automotive world.

These last vehicles, however, are only a small part of the vehicles sold, but they are at the heart of the communication of the automotive manufacturers.

We can say that the automotive houses currently use electric vehicles to draw attention to everything related to the car world. Electric vehicles are increasing significantly in the last year, also due to the covid-19 pandemic, which has seen the global automotive reality change.

However, there are some aspects that must be considered in the context of the scalability of this new sector.

In fact, if making a traditional car does not have significant costs and difficulties in finding raw materials, there are difficulties in procurement for electric vehicles.

We are talking about materials, such as lithium, but also nickel and cobalt. At the same time, there is a very weak infrastructure for electric charging, which needs to be developed as soon as possible.

Currently, in the world, there are very few companies capable of making an important number of electric batteries and this must absolutely be one of the priorities. If there are no industries that produce electric batteries, it is very difficult for the electric automotive market to develop quickly and scalable.

Currently, in fact, the opening of these large gigafactories has slowed down and could risk leaving many electric vehicles on foot, due to the lack of electric batteries.

Demand for electric cars is expected to grow, but this therefore necessitates the construction of hundreds of new gigafactories. Automotive manufacturers are moving towards producing them internally, without having to be linked to other realities.

The cost and value of a battery is certainly not negligible and is around 7 or 10 thousand euros. This is why delaying the construction of these gigafactories does nothing but delay the return on investments, through the sale of cars.

A very important aspect is also the development of the charging network. The United States of America currently has around 100,000 public charging locations, but this figure could increase to over a million charging locations by 2030 to meet demand. China plans to install nearly 5 million charging stations by 2030, when it is expected to have around 100 million electric on the roads.

In Europe, we are talking about about 6 million refills places of refills by 2030, up from the current 300,000.

To create recharging areas, investments are needed, but in-depth studies are also needed on the place where the recharging station should be located. The question could be simple, but it is not at all, as creating a public fast charging station has very high costs and it could happen that in certain European areas with low income, they are not installed precisely due to lack of potential economic return. .

The second step is also to understand what is the optimal charging speed, in order to embrace the largest number of vehicles.

This is therefore an important aspect, which requires a 360 ° study, also in collaboration with local administrations.

A final problem that needs to be optimized is that of the companies called gigaFactory. These huge companies, which aim to make electric batteries, must be optimized in their operation.

Being very large, they have the risk of losing tens of thousands of euros in terms of optimization.

Operational efficiency, therefore, is an impacting and fundamental challenge for all managers. In fact, many new facilities have a lower production than expected, due to a continuous shortage of manpower or raw materials.

This leads to a loss of efficiency, a slowdown in production and also an increase in costs, with a final slowdown of the cars.

Some houses have even had to stop production, in order to have enough stock of raw materials, so that they can send production much faster than today.

Here is how the automotive world should try to solve these problems, in order to have a total and full scalability as regards the electric automotive market.

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