Frederic Godemel, EVP Power Systems and Services at Schneider Electric, explores the solutions that could enable even more sustainable EV production.
So far, 2024 has been described as the ‘Year of AI’, the ‘Year of Elections’ and, according to the Chinese zodiac, the Year of the Dragon. However, based on current evidence, I’d like to propose a new title: 2024, the year of the electric vehicle (EV).
The IEA recently reported that 2024 will see the highest number of EVs ever sold – a 20% increase on 2023. A recent study estimated that the global tally of public charging stations will soar to 16 million by 2026, marking a threefold increase from 2023.
Although the lack of a cohesive policy framework and regulatory incentives continue to be a barrier to growth, industry analysis showing that EVs could even put energy back into the grid when solar and wind energy is low, rather than overwhelm it as some first feared, is this the year that EVs finally go mainstream?
As we urgently need to accelerate the sustainable mobility transition with climate deadlines fast approaching, it looks as though EVs, and their infrastructure, are finally moving in a ubiquitous direction. However, one core issue remains: the impact of EV batteries on our fragile environment.
The grey areas in green vehicles
EVs are sometimes known as ‘zero-emission vehicles’ and, once on the road and charged via renewables, this claim has the potential to ring true. However, the manufacturing of the batteries that power EVs is a different story.
It’s estimated that large lithium-ion batteries used to power EVs are the largest source of embedded emissions for both electric cars and trucks, accounting for up to 60% of total production emissions, meaning batteries can generate as much emissions as the production of all the other materials that go into making an EV – or even more.
It is largely through a lack of greenhouse gas emissions once on the road that EVs begin to leave their famed minimal footprint, and it is widely acknowledged that EVs begin to make a tangible positive impact on greenhouse gas emissions after driving between 10,000 and 30,000 kilometres, compared to fuel-based cars.
The EU has already enacted laws on more sustainable, circular and safe batteries to ensure they “have a low carbon footprint, use minimal harmful substances, need less raw materials from non-EU countries, and are collected, reused and recycled to a high degree in Europe.” But when it comes to EV batteries, we need to do more in terms of how they are built, both in Europe and worldwide.
So, how can manufacturers pivot to ensure that EVs and their components are as sustainable as possible?
Unlocking ultra-valuable production data
The EV battery manufacturing industry is navigating a critical transition. To date, manufacturing organisations have geared their business and operating models to optimise production throughput and capture market share as quickly as possible. But ramping up production rapidly has created hidden costs – value leaks of data. They are enabled and fostered by the inhibition of meaningful feedback loops within the factory and across the value chain.
For example, 25% of power outages are caused by electrical equipment failures. We’ve also seen transformer failures lead to significant disruptions and safety hazards, like the fire in Ontario and the explosion in Bangkok. This highlights the need for services that ensure robust Electrical Asset Management, like predictive maintenance to avoid operational damages.
Above all, we know that buildings – battery factories included – account for around 39% of global energy-related carbon emissions, with 28% coming from operational emissions like the energy needed to heat, cool and power them, and the remaining 11% from their materials and construction. Buildings must therefore be our primary target in the sustainability transition. But it can be hard to visualise a building’s data, such as losses in energy efficiency, without a centralised view of a facility’s assets. Manufacturers need to future-ready their buildings inside and out with connected devices, sensors, and systems to unlock actionable intelligence and meet the demand for net-zero carbon emissions.
Driving digitised development
The key to the safe, eco-friendly production of EV batteries is the creation of an all-digital, all-electric in-house manufacturing environment. We know that scope 2 and 3 emissions are the hardest to mitigate because of the lack of control organisations have over them. By bringing production in-house, manufacturers can unlock greater energy, sovereignty, cost savings, and direction over their batteries’ assembly, all vital when navigating the complexities of the global EV supply chain.
Implementing predictive maintenance can also help unlock value from an all-electric environment. AI-powered analytics and advanced predictive maintenance, 24/7 assets monitoring and alarming by remote electrical experts, and circularity and life extension services to optimise ageing and under-invested assets – they can all combine to ensure business continuity and minimise downtime. However, they’re tough to install and achieve alone.
The power of partners
Collaborations with digital partners are also supporting many EV battery manufacturers to sustainably meet skyrocketing demand. These partners can help to create digital twin architectures to form the basis of a factory-wide digital transformation. They can also foster manufacturing excellence via a model-based manufacturing execution system and unified optimisation with contextualised decision-making from engineering to operations. Improvements not only reduce emissions but also give manufacturers greater control over the amount of energy they buy, reducing reliance on critical raw materials from dominant markets and strengthening supply chain management.
Ultimately, digitisation, with the support of expert partners, can offer a continuous digital thread of AI optimisation for asset management, providing better operational visibility, power disruption elimination, and reliable electrical equipment operation. Digital services that focus on improved uptime and efficiency can successfully provide end-to-end cybersecurity and cloud or on-premise solutions for continuous asset monitoring with advanced analytics.
Nestlé, the world’s largest food & beverage company is a perfect example. The company needed to eliminate power disruptions, which can cost $52K hourly, and reduce costly maintenance throughout its Nescafé Toluca factory, which is responsible for 60% of its soluble coffee production. It installed asset management software and digital services to deliver reliability, along with predictive maintenance and a lower total cost of ownership. The results? Three stoppages have been avoided entirely since implementation, Nestlé engineers have received a dozen alerts so far to protect production, and maintenance has moved from an annual to a biannual schedule – boosting productivity and minimising upkeep costs.
If EV battery manufacturers want to resolve their production issues while accelerating sustainability, they too may need to partner with an expert digital services provider. A partner can help to transform EV battery production from its conception, including the review of unsustainable factory processes and building materials, the collection of valuable emissions data, and the identification of carbon-light improvements.
Ultimately, EVs are clearly the future of transport, but we now need to make them the present if we are to meet climate targets. It’s time for manufacturers to discover how they can minimise their carbon footprint throughout the entire EV lifecycle – from production to the parkway.
