Developments to Watch in Electric Vehicle Technology in 2023

Electric vehicles are among the fastest-growing segments of the clean energy industry.

FREMONT, CA: The electric car market is one of the most dynamic segments of the renewable energy industry. In 2018, global sales of electric vehicles increased to 6,6 million, representing roughly 9 percent of the worldwide automobile market and tripling their market share from 2019 onwards.

The Inflation Reduction Act has extended EV tax incentives on qualified models through 2032. Rising fuel prices have made EVs more tempting to many drivers. Efforts are currently being made to improve the EV charging infrastructure and extend the range of EVs, which is crucial for the growth of the EV market. However, supply chain bottlenecks resulting from the epidemic continue to present problems for automakers. Let's study the upcoming EV industry developments in 2023.

Infrastructure Is Still Playing Catch-Up

Consumers in the United States continue to be concerned about the absence of public EV charging stations, which could dissuade them from purchasing an electric vehicle. However, the trend toward longer driving ranges is helping to mitigate these worries since drivers will need to charge their vehicles less regularly.

Although the infrastructure law passed in 2021 includes $7.5 billion to subsidize the installation of 500,000 additional electric vehicle (EV) chargers, some analysts believe this amount needs to be revised. Given electric passenger vehicles, pickups, and SUVs sales projections, comprehensive charging infrastructure is essential.

Public EV charges are essential for increasing EV adoption, particularly among certain demographic groups. For instance, apartment dwellers may be unable to charge their vehicles at home if they lack a designated parking space with access to power. Similarly, traveling with an EV in rural areas of the United States is still challenging due to the limited availability of charging stations.

Batteries Continue To Get Better And Better

Due to developments in lithium-ion battery technology, the range of EVs continues to increase. Now, the range of many new EV vehicles exceeds 300 miles, with some exceeding 400 miles. However, most EVs with the longest range tend to be more expensive.

Will Hydrogen-Powered Automobiles Be Commonplace in the Near Future?

These vehicles are powered by hydrogen fuelling stations and have internal combustion engines, hydrogen fuel cells, or gas turbine engines. A study published in January 2022 by Nature Electronics predicts that fuel cell EV technology will play a small part in the future sustainable transportation movement.

The automobile industry has placed a greater emphasis on battery electric cars (BEVs) than hydrogen fuel cells. In addition, recent advancements in battery technology have expanded vehicle range, diminishing the appeal of fuel cells.

Uneven EV Sales

China, France, Germany, and the United States are the global electric car market leaders in terms of sales. Others lag significantly, such as Japan, South Korea, India, Mexico, and Canada.

Total EV and per capita sales are very different, and per capita, EV adoption is quite high in many European nations, notably Norway, Iceland, Sweden, and the Netherlands. EV adoption has been highly disparate in the United States, with California, Florida, and Texas having the highest EV ownership rates.

Continuingly High Gas Prices Fuel EV Demand

Since the war between Ukraine and Russia began, gas prices in the United States have climbed and are likely to remain reasonably high for the foreseeable future. In addition, OPEC reduced production by 2 million barrels per day, which is anticipated to increase gas prices. These high prices, combined with inflation and price increases in other sectors, could prompt more drivers to purchase an electric vehicle in the near future.

EVs will continue to drive trends well beyond 2023

In 2023, the electric vehicle industry will continue to be highly dynamic due to high petrol costs, the introduction of new, appealing EV models, and the federal tax credits for EVs that are driving demand. In addition, advancements in battery technology are increasing the range of new EVs, reducing consumers' range anxiety.