The Electric Revolution Marches On
The shift towards battery-powered transportation is demonstrating real-world benefits while navigating inevitable hurdles. By 2030, we still anticipate an additional 945 GWh of annual battery production capacity in the US alone, supporting 45 new EV models from 45 manufacturers, 80% of which entered the scene post-Tesla. Globally, production capacity will support 10 to 13 million all-electric vehicles annually by 2030.
Leke Services approach to 2025
- Evolving consumption habits: Consumers are adapting to unique EV benefits and maintenance needs of EVs, from faster-wearing components like brakes and tires to new customization opportunities.
- Digital dominance: Drivers are becoming increasingly enamored with digital features and enhanced connectivity in EVs. We must learn from automotive trends in Asia and navigate the volatile landscape of autonomous vehicles.
- Component-level efficiency: Increasing efficiency will continue to emerge from components and sub-assemblies, with everything from compressors to valves using less power and leveraging more precise production techniques.
- Electrifying more: Off-road, marine and sever duty sectors are moving beyond the proof-of-concept phase, with capital costs not being the primary obstacle here. The ramp-up in these areas may be more manageable due to incumbent 'build-to-order' models.
- Growing pains: Increased adoption is magnifying challenges such as charger availability, transmission backups, end-of-life management, battery health concerns, and critical mineral availability. Many startups are addressing these issues, and they'll need support from the ecosystem to survive.
- Emerging value pockets: New opportunities are arising in line with the hope for an industrial renaissance in the United States. The future of production will favor those who can set the right foundations championed by Industry 4.0 evangelists.
- Commercial electrification challenges: As more companies aim to electrify their commercial fleets, the lack of expertise will become more apparent. Change management remains one of the biggest obstacles to widespread adoption.
- Global market dynamics: Outside the wealthiest countries, markets with less barriers to entry will expand different forms of EV adoption, particularly in electric two-wheelers. Localized supply chains will continue to be a priority for rich countries, while poorer nations will seek ways to add more value to their roles in the global supply chain.
The AI Advantage
AI adoption is widening the gap between industry leaders and laggards. From digital twins to autonomous vehicles, the potential for AI to revolutionize mobility is immense. As we embark on this exciting journey into 2025, I invite you to join Leke Services in shaping the future of mobility. The road ahead is challenging, but the potential rewards for our industry and planet are immeasurable.
Before signing off, I'd like to give a big shout-out to my small but mighty team. Their instrumental efforts have brought us this far, and I'm incredibly proud of what we've achieved together this year.
Let’s embrace the chaos, drive innovation, and power the mobility revolution together!
Cheers,
Laolu Adeola
Founder & Principal
