-Matt Witkin
We’re now at a clear tipping point.
And judging by how experts keep revising their forecasts upward, electric vehicles are coming faster than we think. The government’s EV forecast can’t keep up with the pace of EV adoption and has needed to revise its predictions upwards in each of the last three years. BCG’s 2022 report predicted that EVs will claim a majority market share four years earlier than they predicted in 2021, which was three years earlier than they predicted in 2020. Transitioning our infrastructure from accommodating ICE vehicles to EVs is a significant undertaking to keep pace with this adoption and give us a chance to hit our decarbonization goals.
Here at M1C, we’ve been studying the mobility space and have honed in on three key choke points for the transition to electric mobility - posing as areas where we are eager to invest in and work with startups creating innovative solutions:
🔌 Charging Infrastructure Enablement: reliable infrastructure that ensures people can charge their vehicles where and when they want.
🔋Charging Optimization and Management: software that manages customers’ cadence of charging and optimizes for price, overall grid demand, and renewable sources of supply.
🏙️ EV Accessibility: innovative solutions to ensure EVs are affordable and accessible to everyone, limiting any barriers to ownership for everyone who wants to switch from ICE vehicles.
In the following sections, we want to introduce you to how we think about each issue and the exciting solutions we already see and invest in.
Electric vehicles cannot go far without proper public charging infrastructure.
This is why leaders are saying “Public charging is the No. 1 barrier to EV adoption.” But adding the public and private chargers needed is a staggering undertaking. Experts predict that we will need to invest $87 billion by 2035 to serve EV sales consistent with our climate goals, a target that we are currently falling woefully short of. Recognizing this gap, the Biden Administration dedicated $7.5 billion to accelerate the development of this new charging network. Much of the conversation around EV charging surrounds public infrastructure, yet it is essential to understand that today, roughly 80% of all charging still happens at home.
While much of this capital will flow to the physical infrastructure, here at M1C, we understand that software will play a crucial role in enabling the successful deployment of this charging equipment. Here are a few of the opportunities we are excited about:
EV Charger Maintenance, or lack thereof, is undermining the nascent EV charging network. Unlike gas stations, with on-site staff, ample fueling ports, and proven infrastructure, EV chargers have multiple fail points, including their internal software, payment systems, and hardware. While manufacturers quote 95-98% uptimes, actual measures of EV charger performance is closer to 70%. Studies show that one-in-five visits to an EV charging station do not result in charging, with an overwhelming majority of the visits derailed due to a malfunctioning or an out of service charger.
While billions of dollars are going into building EV chargers, this lack of maintenance is already undermining customers perceptions of EV charging reliability. This problem will worsen, not improve, as more EVs come on the road. From 2021 to 2023, unreliability increased by 50%, and states with higher EV penetration are less satisfied with their charging infrastructure.
Fortunately, governments are starting to address this vital issue. Under recently announced guidelines, chargers must maintain a 97% uptime to be eligible for the primary source of federal EV charging funding. And there are exciting startups that are helping EV chargers reach these goals - such as our portfolio company, ChargerHelp!.
