By Anjan-Hemanth Kumar

On the 10th and 11th June 2009, Frost & Sullivan was proud to host a landmark two day interactive electric vehicle (EV) workshop where a range of activities were held to debate and discuss strategic global insights into key developments surrounding the market.

The event was a runaway success and is one of the first events of its kind to combine parliamentary debates and industry presentation sessions. It was appreciated by many attendees in the form of testimonials, of which one of them read:

A range of electric vehicles were on display at the event. Attendees cherished the chance to drive the Think City, feel what it would be like to drive the Modec van, have a ride on a Segway, whilst at the same time bask in the luxury of the all-UK stunner Lightning GT!

The first day wiped out even the faintest demarcation between the government, stakeholders and the industry.

The day kicked off with a debate chaired by Adam Afriyie MP, Shadow Minister for Science and Innovation, with the motion 'Electric vehicles are the low-carbon transport technology of the future'. Sarwant Singh (Frost & Sullivan) put forward the case in favour of the motion projecting a strong case for electric vehicles giving the history of battery vehicles. A short audience poll by Martin Leach (Magma group) reiterated this projection, with at least half the room voting that that future technology is the electric vehicle! The case against the motion was presented by Prof Steve Evans (Cranfield University), who made his point with pertinent facts that the fuel cell car is the future. In particular, he highlighted the range limitations and the energy source to be the main drawbacks of an EV. Presentations from the speakers were followed by a lively Q&A session.

Adam Afriyie MP, Shadow Minister for Innovation, University and Skills chairing the Debate "Electric Vehicles are the low carbon transport solution for the future"

The Round Table

The lively debate was followed by a roundtable discussion hosted by Robert Goodwill, MP, Shadow Minister for Roads, on the topic of Infrastructure for EV's. Participants included representatives from vehicle manufacturers, suppliers, infrastructure builders and the utility sector who, along with Frost & Sullivan helped provide a full perspective of EV infrastructure requirements and issues. After hearing the cases from the table and following the spirited discussion, Robert Goodwill concluded that significant developments in EV infrastructure is clearly necessary and the UK government is in favour of EV's. However, it was understood by all that it is not the role of the government to pick and choose a technology, but rather set out norms and regulations to allow the industry to come up with the best solution.

The activities on the 10th June were rounded off by a VIP cocktail dinner hosted by Lord Palmer, Vice Chair of the Renewable Transport Fuels Group where the group lobbied to change the perception and bring the salient issues around EV's to the awareness of MPs and peers.

Robert Goodwill MP, Shadow Minister for Roads with the Lightning GT on display at the House of Commons

Day 2- Day long Presentations and Networking

The second day of the EV Workshop was comprised of a series of presentations from a cross section of the electric vehicle industry with representation from vehicle manufacturers, battery and electrification businesses, the utility industry, infrastructure builders and the government.

Sarwant Singh, Partner and Practice Director at Frost & Sullivan demonstrated how urbanisation is creating the demand for EV's and supporting this with crisp vehicle forecasts. He educated the audience with the challenges ahead of EV's, world-wide developments, roadmaps and emphasised the role of new business models before appealing the government to support electric vehicles.

Kulveer Ranger, Director of Transport Policy from the Mayor of London's office promised to lead the world's EV fleet. His inspirational speech detailed the efforts taken by the Mayor of London in turning the City of London into a Mecca for EV's. He ascertained that the UK government is talking to many vehicle manufacturers, working on huge incentives for the industry and consumers alike with a plan to set-up the charging network to support the fleet.

James Miners, CEO of High Power Lithium (HPL) showed great enthusiasm in presenting the next generation lithium ion batteries for automotive applications. Some of the takeaways from his presentation were the price, performance, availability and options of lithium ion cells.

Chart 2: Pricing trends of Lithium-ion battery cells, HPL

Tony Shaw, Senior Procurement Manager at Royal Mail gave the most opportunistic presentation in terms of business opportunities to the audience. The UK's postal company is looking for EV manufacturers who can help them reduce about 30,000 tons CO2 pa by 2015.

The morning session concluded with a panel discussion that focused on the batteries and electric vehicles The panel agreed that EV's are necessary to address economic and environmental issues and that the cost of batteries are reducing so this is no longer a key issue. It was agreed that engineering developments at the cathode of the battery has historically been the focus for R&D, but anode engineering is a long term developmental area.

Battery Panel Debate Chaired by Ed Gibbs, Frost & Sullivan

Afternoon Session Focus: Electric Vehicle Infrastructure

Benny Daniel, Consultant at Frost & Sullivan kick-started the post lunch networking opportunity by presenting detailed yet crisp statistics on the emergence of key business models for EV's. The clear message was that the cost of the battery would continue to be the "Achilles Heel" for the EV market, and the onus was on vehicle manufacturers and integrators alike to offset this initial high investment for consumers by selling EV's through innovative subscription based models.

Chart 3: New Business Models: Breakdown of Energy Packages, Frost & Sullivan

Pierre Clasquin, CEO of 365 Energy Group was quick to agree with Benny's analysis of the business case for infrastructure provider. Pierre highlighted out a strong case of synergies at national, regional and local levels. He demonstrated that there is interest in a subscription based business model similar to a mobile phone and ascertained benefits of a huge network of such stations.

The final presentation of the day was delivered by Torben Holm, Head of Innovation Projects at DONG Energy. Having taken the first step to support mass production of EV's with Better Place, Torben elaborated on the association and responsibility with Better Place and indicated that DONG was open for partnerships with for a green future.

The afternoon session was rounded up with a panel discussion that focused on the EV infrastructure. The panel concluded that battery swapping and new business schemes are something that will be put to test in the near future and the responsiveness of the consumer holds the key to the success of this model.

Infrastructure Panel Debate, Chaired by Martin Leach, Magma Group

The Verdict

The UK government is willing to support EV fleets, the price of the battery packs is no more an issue - they will decline with volumes, battery technology will progressively shift from cathode to anode, new business models and energy packages are of key interest to businesses outside the traditional automotive market and infrastructure remains a key issue.

The event not just promoted networking but helped businesses to position themselves in the race to the electric vehicle era.

Without a doubt, the event left all participants wanting more and Frost & Sullivan does intend to follow-up with another thought leadership event. So, watch out for another invitation in your mailbox!

For more information about future events hosted by Frost & Sullivan please contact Monika Kwiecinska: monica.kwiecinska@frost.com, +48 2239 04127

Networking and Demonstration Vehicles at Day 2, SMMT