Saturday, September 23, 2023

VC Predictions on the Electric-Car Industry for 2023

  • 2023 will bring more momentum to electric-car industry than 2022.
  • Insider asked six venture capitalists to tell Insider what they expected to see in 2023.
  • They suggested that they look for a battery bonanza.

The electric-vehicle market gained momentum in 2022. Car companies spent more than $515 billion to switch from gas engines to electric, which requires a lot of battery, charging and supply-chain knowledge.

Even with challenges — and some executives‘ losing faith in the EV biz — the industry can’t turn back on its ambitions. Insider interviewed six venture capitalists to get a feel for what the industry will look like in 2023. They monitor many large companies, startups, sectors and trends in the world of EVs. Here’s their opinion.

Redwood Materials employees taking a battery module apart.

Redwood Materials, an innovative recycling company, will break ground on its second facility in the first quarter.

Redwood Materials

A battery bonanza, and a reworking supply chains

Venture capitalists think the EV push — especially in the US — can only see more success with improvements in battery supply chainsAnd manufacturing. It’s no surprise that this is the region they expect to see grow most in 2023.

Stakeholders, policymakers, car buyers, and many others can anticipate all kinds of opportunities. batteriesEspecially as the industry reinventsThe way it has done things for years.

“What’s going to be relevant both in ’23 and probably for the next seven to 10 years is how do we reshore — or just shore, period — our EV and overall battery supply chains?” said Aidan Madigan-Curtis, a partner at Eclipse Ventures. “There is a lot pressure on these supply chains, to figure out how we can do things efficiently.”

She said that one of the areas she is most interested in exploring is the mineral discovery side. She also stated that she expects raw-material processing and the production of battery cells will gain momentum. “Pack manufacturing is the area where we see the greatest opportunity right now.”

Expect opportunities on both the supply and demand side. improvements in battery tech. Automakers are exploring. different types of batteriesTo get a leg up on the competition.

“Expect to see higher-energy-density, faster-charging batteries, and pack-level innovations get more traction,” Rajesh Swaminathan, a partner at Khosla Ventures, told Insider.

Teslas charging

One VC believes the industry is at a tipping point in terms of charging infrastructure.

Robert Knopes/UCG/Universal Images Group via Getty Images

Charging, charging and charging

Historically, chargingIt has not been a money-making venture. Automakers have been able to satisfy early EV buyers by offering a variety of vehicles. teamed upConduct mergers and acquisitions, and made other strategic moves.

The industry could be on the verge of a tipping point.

Brian Walsh, Head of Wind Ventures, said that “the infrastructure capital” is on the way. “It’s an indication that the risk of deploying EV-charging infrastructure has reached a point where it’s no longer risk capital” — or otherwise risky.

Although it was difficult to decide where to place charging stations, more people are buying and driving EVs. Companies have greater insight into the best places to charge.

Walsh stated, “The second wave” is already underway and will address or correct many of the weaknesses in existing infrastructure. We can now predict, as Amazon’s fleet grows, where charging hubs will be needed.

Faraday Future

Faraday Future’s FF91 hybrid electric car was a focal point of the crowd at CES 2017. Five years later, the company has faced many challenges.

AP Photo/Jae H. Hong

There’s still time for a shakeout

Fontinalis partner Chris Stallman predicted that more automakers will make commitments to EV transition, as well as government support and public interest, in 2023. Stallman is confident that the industry will survive, even with the current economic downturn. shakeout possible.

Insider was told by Stallman that “customers and investors are becoming increasingly discerning” and that automakers and dealers are working together to provide what they need.

Companies that are simply too simple to recognize should be avoided won’t be able to make it. Stallman stated, “The reality is that not every company will succeed. But some will succeed.”

Alexei Andreev (Managing Director at AutoTech Ventures) said that there could be a shakeout in the battery sector, where hundreds are employed. startupsThey are in a race to be able to compete with giants

It’s about capital formation and investment decisions. Insider spoke to Andreev in the fall. “But, as a startup I don’t have the chance to compete against established players.

Andreev said, “My view is that it will be a miracle for even one of them to make it,”

Cruise AV

Although the autonomous-vehicle market suffered several setbacks in 2022, General Motors remains optimistic about Cruise.



The autonomous-vehicle sector took a few hits by 2022 Argo AIFord and Volkswagen supported startup,, which was shut down the GM subsidiary CruiseThe investigation centered on this issue. TuSimple struggledWith layoffs and executive turnover, and Aurora debated a sale.

Robert Ravanshenas (a partner at Maven Ventures) said he expected municipalities to begin leveraging the AVs that are available for them next year. He predicts self-driving consumer transport will increase in the coming year, following big advancements made by Cruise and Waymo in 2022. 

“As such, all parts of the transportation supply chain,” said he, “will start developing second-order technology that enhances the experience in autonomous vehicles.”

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