Automakers still need to overcome multiple hurdles before electric vehicles are broadly adopted. The main challenges are: Electric Vehicle Driving Range, Charging Time, Lack of Charging Infrastructure, and Higher Upfront Cost. The 2020 Nissan leaf has a range of merely 150 miles, and the Tesla Model 3 only travels up to 370 miles before needing a charge. Most chargers take a minimum of 2 hours to charge an EV, up to 8 hours in some cases. Charging infrastructure varies by location; however, it is insufficient to meeting the growing demand and often involves long wait times.
With the total cost of electric-vehicle ownership for some commercial applications already beating out internal-combustion engines, ACT Research predicts that electrification of the Class 4-8 commercial vehicle market in the U.S. and Canada will top 40% by 2040 – with a third of the market migrating to battery-electric solutions in the next 10 years.
While the total Class 4-8 share is expected to be around 42% in 20 years and 34% in 10 years, in the Class 6-7 marketplace, ACT sees a 70% share in that 20-year horizon, and in the next 10 years, almost 60%.
Principal Solar established its NexTeal operating subsidy to focus exclusively on electric vehicle investments and technologies. Click here to learn more.
Principal Solar and eTruck Transportation
Principal recently created a new subsidiary in partnership with industry-leading heavy electric vehicle conversion company eTruck Transportation. Through the subsidiary, Principal intends to fund and support the successful, near-term roll-out of eTruck’s heavy electric vehicle offerings by providing the working capital necessary to deliver on expected customer orders, develop future platforms and technologies, and to enable the subsidiary to grow by providing sales and marketing resources, strategic guidance, and hands-on expertise. Click here to learn more about Principal’s investment in eTruck.
Principal Solar and IPLTech Electric
Principal has entered into a Development Agreement with India-based heavy electric vehicle maker IPLTech Electric. Per the terms of the Agreement, upon completion of the development of a pure electric truck prototype, Principal and IPLTech will enter into a Licensing Agreement in which Principal will receive a license to deploy IPLT’s proprietary technologies in U.S. truck platforms. The Agreement also provides an opportunity for the Company to co-invest in IPLTech alongside private equity funds. In exchange, the Company will receive a combination of exclusive and non-exclusive rights to commercialize IPLT’s proprietary technologies for North American markets. To learn more about Principal’s investment in IPLTech, click here.