1996 marked a major car brand’s first attempt at a modern electric vehicle in the General Motors EV1. After 1,117 cars were built across two generations, GM canceled the EV1 in 2002 due to the belief it was a niche market that would not be profitable for the foreseeable future. Twenty years later, however, the United States has hit the “Mass-Adoption Tipping Point,” according to Bloomberg.
What is the “Mass Adoption Tipping Point”?
The mass adoption tipping point is believed to be 5% of all new vehicle sales. Thisis based on data gathered from 18countries that have already adopted EVs as a primary form of personal transportation. Once 5% of all new vehicles sold are EVs, the speed at which this percentage grows increases rapidly, with projections that this number could reach 25% by the end of 2025.
If the US follows the trend established by 18 countries that came before it, 25% of new car sales could be electric by the end of 2025, according to a Bloomberg analysis of adoption rates around the world.— Bloomberg Green (@climate) July 12, 2022
That would be a year or two ahead of most major forecasts pic.twitter.com/rxzMDHpzrd
How Have Other Countries Stacked Up?
The prime example of EV adoption is Norway. They passed the 5% tipping point in 2013 Q3, and in 2022 Q1, 83.5% of new vehicle sales are electric. While this is unrealistic in the immediate future, especially considering there were 150,000 more vehicle sales in the US during Q1, other European countries are a better comparison. Both Germany and the UK hit the tipping point in 2020 and are currently sitting at 13.5 and 16.5%, all in two years. Combined, the number of cars in Q1 is still lower than the US but is a promising sign indicating the industry will continue to grow and put us on pace for the 25% mark in 2025.
What is Driving This Rapid Increase?
As more and more people buy EVs, there are more incentives for companies and governments to provide infrastructure. While 5% of Americans may not seem like an extraordinarily large number, that is 16,475,000 people, making that group the fifth most populated state behind New York. This is a large number of people who need charging stations, mechanics who specialize in EVs, and dealers having them in stock.
THE GM EV1 Gen 1 had a lead-acid battery giving the cars a range of 70-100 miles. While you could only lease the vehicle, the suggested retail price was $34,000. Today, EVs come at comparable prices and ranges upwards of 260 miles.
As technology improves, EVs are produced more efficiently and cost-effective, allowing better output for the same price or the same output for a lower price. With increasing gas prices, EVs are becoming more and more desirable for the average person as an everyday vehicle.
CPS Technologies’ Part in Reaching This Point
At CPS, we have focused significant effort on creating a more sustainable future through our work in the EV market. Our MMC Power Module Coolers allow EVs to dissipate heat more effectively, allowing for higher power cycling and operating temperatures. Our MMC baseplates also provide high thermal dissipation, reducing mechanical stresses and allowing faster and more efficient charging rates.
While discussing the future of EVs, CEO Michael McCormack stated, “It is incredible to see the United States reach this mass adoption tipping point, not only for CPS and the companies we work with, but to build a better future for the planet. We are very excited to keep innovating and developing ways to make electric vehicles even better.”
To learn more about our Green Innovations and work in the EV field, visit our website.
CPS is a technology and manufacturing leader in producing high-performance energy management components that facilitate the electrification of the economy. Our products and intellectual property include critical pieces of the technology puzzle for electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, the smart electric grid, 5G infrastructure, and others. CPS hermetic packages can be found in many Aerospace and Satellite applications, including the GPS III satellite and the Mars rover. CPS armor products provide exceptional ballistic protection and environmental durability at a very lightweight. CPS is committed to innovation and supporting our customers in building solutions to this planet’s problems.
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2021 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as “will,” “intends,” “believes,” “expects,” “plans,” “anticipates” and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company’s expectation. Additional information concerning risk factors is contained from time to time in the company’s SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this transcript.