Volkswagen launch of electric vehicle infrastructure unit in the U.S. boost the global electric vehicle market

Posted on: Feb-2017 | Automobile

The Electrify America LLC, unit a wholly owned subsidiary of Volkswagen Group of America, will invest $2 Billion in zero emission vehicle (ZEV) infrastructure and awareness programs in the coming years as a part of the court settlement on its excess diesel emissions. Volkswagen plans to build 500 charging stations worldwide and high speed cross country network. It is planning launch an initiative to turn California into a “Green City” which has EV-based charging station programs, ZEV transit program, and ZEV-based shuttle service. According to Chief Executive Mark McNabbof Electrify America, this is going to be a promising project for transforming the global electric vehicle market. The company has to make four $500 Million investments every 30 months to get approval from the California Air Resources Board and the U.S. Environmental Protection Agency before spending it on California or Rest of the U.S. It plans to cut down on its diesel pollution emission by:

Emergence of fuel cell electric vehicle technology:

The fuel cell electric vehicles are the latest trend in the global market. The cells are charged by the oxygen and compressed hydrogen which results in the emission of water and heat. With the stringent government laws and environment concerns the various regions are adopting the FCV technology which will increase the sales of electric vehicles in the coming years.

Reduction in the Li-ion batteries:

The major factor driving the global electric market is the decline in the cost of Li-ion batteries due to the relocation of its manufacturing unit from Japan to China and an increase in its production volume. According to U.S. DOE the Li-ion battery charges decreasedfrom $ 1,000/kWh in 2008 to $ 485/kWh in 2012. This significant is expected to drive the global market.

Thus, by December VW plans to sell 5,000 SUV Tucson, fuel cell based electric vehicle, by 2020 in the state.