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Snippet of Avid Learning: EV Technology: #39 | EV Battery Show - Keynote Speech on Key Trends Driving Electrification

Last Played: March 18, 2021
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The CEO of Avid Technology takes his audience of a canter through some trends in the electric vehicle industry. The big question is why should we electrify?" and secondarily, "How?" To answer the why, our host indicates clean air as one of the primary contributing factors, surprisingly, the cost isn't as big a factor. however, government incentives and investments for EV producers lead to a strong trend towards electrification.
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mhm. Thank you. Uh, this presentation is a bit different. Um, we've got a fairly high level canter through some trends in the commercial vehicle heavy duty vehicle, electrification scene that we are seeing as a business at the moment. So just a really quick introduction to avid technology. Basically, we have three core competencies, thermal fluids, high power density motors and power electronics were quite a small, innovative and agile business. We have a range of platform products and we're dealing in the heavy duty, high performance vehicle space. It's quite a good, good selection of customers. So I guess in contrast to the last two presentations, I'm going to talk a bit more about the general electrification scene. So what do I mean by that? We see some key trends in terms of the big question. Which is why so why? Why are we electrifying in the first place? And those trends drive how we electrify because it's not just about battery electric. So I think when we were talking about electrification, we can get very into fully battery electric. But obviously there's a lot of other powertrain to apologies and particularly for the commercial vehicle, Heavy duty vehicle space. There's a lot of other powertrain to apologies, which are very appropriate and bring some significant benefits. So the first trend, you know it's fairly clear is clean air. So very aware of this now we have a lot of activity globally to do with clean air. Basically, in the wake of the diesel scandals that have hit the automotive industry, that's made legislators very, very aware of the clean air situation. So if we want clean air, we want zero emission operation and driven by the legislation is kind of a. The cost is not necessarily the key driver, and that's unusual because typically, commercial vehicles are different to passenger cars. You might buy a Tesla because you want to impress a potential boyfriend or girlfriend, but you don't buy a truck to look cool unless it's a a big rig to take and show your friends you buy a truck to make money so the cost of ownership is really important. And what we can still see even today with the costs have gone the way they've gone. The total cost of ownership argument is difficult for fully electric vehicles in in most applications, but where we have the extra lever from government to incentivize fully electric operation. We're increasingly seeing that for different reasons because of clean air, because governments have recognized there's a social and economic cost to air pollution. So they're prepared to invest in and incentivize zero emission operation vehicles. So that basically comes in two or three different flavors. One of the things anyone who knows me knows. I find the argument between fuel cells and battery electric quite entertaining. So we like fuel cells. They do solve some, uh, some some issues in the market, but basically fuel cell vehicle is an electric vehicle. So we like. We like it all. But essentially we got fully battery electric and zero emission capable hybrid vehicles filling this space in the market. We definitely have a cost up on the vehicle powertrain. We definitely have some difficult maths to do in terms of the total cost of ownership calculations, and we're basically relying on legislation. But the good news is, if you're involved in making components and powertrain systems for this kind of vehicle, there is more and more legislation coming through that is driving this. Um, so we are seeing a lot of investment around the world in vehicles and powertrains that can deliver. The typical big cost items mentioned by the previous speaker is is the battery, and what we've identified here is basically the kinds of batteries that you'll see in these different in these different applications. So, arranging from high power 10 C cells in the hybrid systems or the fuel cells, fuel cells effectively hybrid relatively small batteries up to some pretty massive batteries. So 300 kilowatts hours, even bigger numbers being quoted now. So some pretty massive batteries, but we're very relatively low, see rates. So there's some interesting things happening there that really the big one and Daimler made a lot of noises around. This is on the solid state batteries, so they've promised us that in the next year or so, we're going to start to see solid state very, very high energy density batteries come through in their commercial vehicles, so it's going to be interesting to see what's what's going to happen there. But as I mentioned before, the whole market isn't just about fully high voltage, high cost electric vehicles. There are other drivers, and the other key driver is Co. Two. So climate change. Obviously, we talk about that. Now we can talk about it more openly and not get laughed at quite as much, depending on which country we're in. We're in Europe so we can talk about CO two and climate change electrification purely for co two is a thing, you know. And if you think about it from a commercial vehicle. Point of View Co. Two is a is an output from the amount of fuel you burn, so it's essentially a measure of the operating cost of the vehicle or the machine. So where we have electrification purely for a fuel saving, which gives us a CO two. Saving to the marketing department of the company will talk lots about the environmental credentials and the CO two reduction. But the fleet manager really only cares about the fuel saving. We have a different approach on
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