Electric vehicles (EVs) are becoming a necessity gradually as the world is transitioning away from fossil fuels. However, affordability is one of the biggest barriers. High battery costs, financing challenges and underdeveloped charging infrastructure are keeping EV ownership out of reach for many potential buyers.
Tech startups across the globe are rethinking EV economics. They are now mainly focusing on batteries, financing models, charging solutions and localized manufacturing. The companies are dismantling the cost barriers one innovation at a time. Let us take a closer look at some of such tech startups which are cracking affordability code.
1. Addionics
Addionics is an Israeli-American battery materials startup. The company is basically attacking the affordability problem at its source and it is of course the battery cell. Traditional lithium-ion batteries are expensive to manufacture. Similarly, the electrodes consume costly raw materials such as copper. The startup has come up with a 3D electrode design. It uses less material, improves charging speed and extends battery lifespan as well.
Addionics lately raised $39 million in a round that was co-led by GM Ventures. The company has plans to build its first U.S. factory. The breakthrough may cut battery costs significantly and at least by 30% in the price of a EV.
2. SUN Mobility
SUN Mobility is an Indian startup and it is pioneering the battery-swapping model. Customers can now purchase only the vehicle chassis as the battery comes as a subscription.
The approach reduces upfront cost of EVs. Swapping simultaneously also solves range anxiety and charging time concerns. Hence, EVs are now more practical for fleet operators. It is learned that its network is rapidly expanding and its business model is of course a template for making EV ownership more affordable in emerging markets.
3. VidyutTech
VidyutTech, another Indian startup, is taking a financial engineering approach to affordability. It separates EV financing into two parts: one for the vehicle chassis and another for the battery. Since batteries are the costliest part of an EV, this model turns them into a pay-per-use expense rather than a massive upfront burden.
Such flexibility makes EVs far more attainable. It is believed that more buyers can now afford the transition to electric mobility.
4. Revfin
Usually, financing is overlooked for being a barrier to EV adoption. Millions of potential customers in India lack traditional credit histories. Revfin has a answer to it. It is offering digital lending for EV purchases based on psychometric tests, telematics and alternative data to assess creditworthiness.
Revfin has now opened up the door for rickshaw drivers, delivery workers and small fleet owners The loans are tailored to electric two- and three-wheelers. The company ensures affordability for buyers.
5. BGauss
Many EV startups rely heavily on imported components, BGauss has a very different approach. It is focusing on in-house component development and local manufacturing of its electric scooters. BGauss cuts import duties and reduces supply chain costs by producing motors, controllers as well as battery packs domestically.
Its scooters are designed considering Indian riders. It is affordable, durable and also efficient for urban commutes. The company is showing the way local production and smart engineering can keep EV prices within the reach.
6. HopCharge
Charging infrastructure is usually believed to be a government responsibility. However, now startups are filling the gap with innovative solutions. HopCharge is one such example in India. It has built a mobile fast-charging service and delivers energy directly to the doorstep of customers. It uses modular portable energy pods and eliminates the need for costly home charger installations.
Approach of the startup is sure to make EV ownership more convenient and simultaneously also reduces the indirect costs which are associated with charging such as time, lost income and infrastructure expenses.
7. Euler Motors
Euler Motors is mainly focusing on the commercial EV segment and particularly the three-wheeler ones. It is also working on light cargo vehicles which are used in logistics and last-mile delivery. The company has raised significant funding to scale production facilities.
The vehicles of Euler are designed with high utilization features. It ensures fuel savings as well as lower maintenance costs. The total cost of ownership (TCO) for businesses is more important than sticker price. Its EVs are proving to be cost-effective alternatives to diesel fleets. Per-unit costs will fall further as adoption scales. The EVs now will become more affordable.
Challenges
There of course remains some challenges. Raw material prices for lithium, cobalt and nickel are highly volatile. New battery companies need regulatory approval as well as large-scale manufacturing. Battery swapping requires industry-wide interoperability. Moreover, financing models need to prove sustainable over time.
However, the momentum of EVs is clear. The startups are gradually cracking the affordability code and simultaneously are also rewriting the rules of mobility in price-sensitive markets.
Verdict
The future of EVs depends on cleaner technology as well as on affordability. Startups like Addionics, SUN Mobility, VidyutTech, Revfin, BGauss, HopCharge and Euler Motors are leading the path with their bold ideas as well as practical solutions. They are turning EVs from an expensive luxury into a mainstream reality.
It is believed that the affordability gap is to shrink in the near future as the models scale and mature.