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Start me up. Electric vehicles can’t take over the world until there are enough public charging points. Today, there are only 1.3 million, but the International Energy Agency says 40 million will be required by 2030, at a cost of $90 billion a year. Moreover, government and business leaders will need to invest $1.6 trillion in charging infrastructure to put net-zero greenhouse-gas emissions within reach by 2050, one research firm estimates. [Economist] |
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Therapy for range anxiety. The world’s electric fleet could soon be powered by inductive charging (a type of power transfer that occurs wirelessly) from the road itself. Small particles of recycled ferrite, a ceramic substance, could be added to concrete magnetized with an electrical current, creating a magnetic field that powers the vehicle wirelessly. [NYT] |
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Why it matters. Charge-point operators (CPOs) will see huge demand as sales of battery-electric vehicles grow by 25% annually through 2030. But providing public charging for all that demand is costly: the hardware alone for direct-current (DC) chargers costs between $50,000 and $100,000, and installation can more than double the cost. |
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Charging for charging. Competition from energy and car companies is coming, so pure-CPO businesses are wise to get a solid head start. For instance, they can create customer loyalty with fast charging in desirable locations. See our article for other smart moves to make, including pursuing scalable partnerships with rideshare and e-commerce companies and seeking ancillary profits through retailing and advertising. |
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| — Edited by Katy McLaughlin |
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Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
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