Semis: tiny heavy lifters
Battery chargers are also becoming faster, helping drivers get back on the road quickly after plugging in.
Some of the new superchargers run at 250kW – almost double the rate of Tesla’s first generation models, which ran at just 120 to 150kW.
These could give drivers up to 120km of range for every five minutes of charge. A new charging network across Europe, based on a 800V architecture, could further boost charging power to a hefty 350kW.
For that to become a reality, though, some technological hurdles need to be negotiated first.
To begin with, there’s the problem of power conversion.
Ultra-fast chargers require a big power feed – one that’s large enough to meet the needs of about 60 average-size homes.6
Because they run on the direct current (DC) system, fast chargers first need to convert the alternating current (AC) delivered by the grid to DC.
Then there’s the car itself. For EVs to be able to use ultra-fast chargers, they need sophisticated power electronics and semiconductors.
Overhauling those systems is a major undertaking – an electric car uses up to 15 times more power semiconductors than a petrol one.
That’s where a new breed of high-powered silicon chips can help.
Called “power semiconductors”, these integrated circuits are the work horses of power electronics: they convert power between different AC and DC voltages and at different frequencies and help maintain the stable flow of electricity.
Just as importantly, power semis are critical in minimising power loss and reducing energy consumption – currently as much as 70 per cent of electricity is lost between its generation at a power plant and the end device because of constant modifications in the electric signal.
Technologies powering EVs are evolving at a rapid pace, paving the road to an all-electric future.
SiC: a star material
The EV industry is also embracing new materials to boost efficiency. Silicon carbide (SiC) is one of them.
First discovered in 4-billion year old meteorites, SiC is a durable crystalline compound of silicon and carbon that, when used in a semiconductor as an alternative to silicon, allows an electric motor to operate at higher voltages. Its thermal conductivity is three times better than that of normal silicon.
SiC doesn’t even melt – it sublimes at about 2,700c.
SiC devices are smaller, faster and more efficient than their silicon counterparts when operating at higher power.
They also have the potential to halve charging time and increase driving range by up to 20 per cent.7
Technologies powering EVs are evolving at a rapid pace, paving the road to an all-electric future and offering ample opportunities for investors to go beyond Tesla.
The Clean Energy strategy: Investing in EV technology
The rise of EVs highlights many underappreciated technologies and industries that present attractive long-term opportunities for investors.
Some of the promising industries include, for example, niche utilities building and operating the charging infrastructure, or industrial companies manufacturing the electric motors.
Batteries and semiconductors, with their rapid technological innovations, also represent a fertile hunting ground for investors.
Within the semiconductor industry, power semis are a fast-growing segment whose revenues are poised to hit USD55 billion by 2025.
Companies developing these components enjoy high barriers to entry and structurally higher margins.
SiC power semis are another growth area. The global automotive industry’s demand for the novel material is expected to expand at a compounded annual growth rate of more than 60 per cent between 2018 and 2030.
However, SiC semis are more complex to produce than regular silicon counterparts. They thus require sophisticated production technology, handled currently by only a few specialised manufacturers in the world.