CLEVELAND, Tenn. — The head of a U.S. automotive research center said Wednesday massive investment seen in the electric vehicle sector, including in Tennessee, is expected to ease off.
Alan Amici, chief executive of the Michigan-based Center for Automotive Research, said he expects investment to return to “a more sustainable level” in future years.
“They’re retooling plants, products and supply chains,” he said about the estimated $146 billion that has been invested in electrification in the past three years in North America. “This is just incredible investment we’ve never seen in the auto industry.”
That figure doesn’t include suppliers or government, Amici said at the Smart Factory Electric Mobility Innovations conference.
Amici said Tennessee had the fifth- or sixth-highest level of investments in the sector.
He said EV sales have undergone a softening during the past couple of months as the industry responds to supply and demand, though there is still “explosive growth.”
The EV segment is “seeing a little bit of the tapping of the brakes,” said Amici, who became the research center’s CEO in 2022.
At the same time, the official said he expects to see EV adoption in the 35% to 39% range by 2032.
Among challenges in adoption is the charging infrastructure, he said.
While a number of EVs can run 300 miles or more between charges, the stations are less prevalent than those for gas-powered vehicles, Amici said.
Also, a recent study showed about 20% of charging stations weren’t able to power up vehicles for a variety of reasons, he said.
“It’s something the industry has to deal with,” Amici said.
Lance Irwin, a vice president for Seven States Power Corp., an energy solutions cooperative owned and operated by power companies in the Tennessee Valley, said it’s trying to achieve more “range confidence.”
He said public charging infrastructure is like a billboard for the industry. For motorists without charging at home, more planning is needed, Irwin said.
“It’s a lot more difficult,” he said at the conference.
On Wednesday, Volkswagen of America announced a Plug&Charge feature. When activated in the Electrify America app, owners of the Chattanooga-made ID.4 electric SUV can save time when using their included charging plan. Once plugging in the ID.4 at an Electrify America DC fast charging station and the connection is established, the vehicle will start charging, according to VW.
(READ MORE: Volkswagen rolls out ID.4)
The 2023 ID.4 comes with three years of included 30-minute charging sessions at Electrify America DC fast chargers, helping with range confidence, the company said in a news release.
Another challenge for EVs is the price, Amici said.
“EVs are expensive,” he said. “You’ve got to bring the price down.”
(READ MORE: VW says most Chattanooga-made ID.4s eligible for tax credit)
Amici said he expects the auto industry to make electric motors smaller and lighter. Advances in battery technology are also expected, he said.
“It will be different in 15 years in terms of weight and cost,” Amici said about batteries.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.