2023-10-27

Hydrogen Development Trends Among Global Auto Manufacturers

Introduction The use of hydrogen as fuel can help industries attain decarbonization targets. Leading global auto manufacturers therefore regard hydrogen as a critical development strategy and are accelerating development for commercial applications. However, the commercialization of hydrogen vehicles is facing numerous challenges, such as insufficient infrastructure, high cost, and deficiencies in the hydrogen supply chain. These factors affect the sales and expansion of hydrogen vehicles in the market. Therefore, the automotive industry will need continuous development of hydrogen power systems to attain sustainable development and net-zero emission targets. I.    Sales Volume Demonstrates Difficulties in the Commercialization of Hydrogen Vehicles Of the only 51,000 hydrogen vehicles worldwide, a majority (90%) is concentrated in four countries: Korea, United States, China, and Japan. Hydrogen power systems are mostly used in passenger vehicles and are gradually being adopted for commercial vehicles. On the commercial vehicle market, pure electric systems have become mainstream due to low maintenance costs. However, many auto manufacturers are actively promoting hydrogen technologies and collaborating on R&D applications in order to accelerate technological developments and market expansion. Table 1. Types of hydrogen-powered vehicles Vehicle type Details Hydrogen passenger cars Light vehicles (passenger vehicles) with a maximum weight of less than 3.5 tons and up to 8 passenger seats in addition to the driver’s seat. e.g.: Toyota Mirai, Hyundai NEXO, Honda Clarity Fuel Cell, etc. Hydrogen buses Hydrogen buses that can be equipped with more than 8 passenger seats (in addition to the driver’s seat). Light hydrogen trucks Cargo transportation vehicles with a maximum weight of less than 3.5 tons. e.g.: Renault Kangoo & Master, Mercedes-Benz Sprinter, Volkswagen Crafter & Caddy, Ford Transit, etc. Medium hydrogen trucks Trucks: More than 3.5 tons but no more than 12 tons. Trailer/semi-trailer More than 3.5 tons but no more than 10 tons. Heavy hydrogen trucks Trucks: More than 12 tons. Trailer/semi-trailer More than 10 tons. (Source: “Deployment of Fuel Cell Vehicles and Hydrogen Refueling Station Infrastructure: A Global Overview and Perspectives”, Energies 2022, 15, 4975. / Compiled by MIRDC (May 2023)) According to statistics on hydrogen passenger vehicles in mass production compiled by the Korean firm SNE Research, the global number of hydrogen fuel cell vehicles reached 20,690 in 2022 with an annual growth rate of 18.4%. The top model is the Hyundai NEXO (11,000 units) manufactured in Korea, which is followed the Toyota MIRAI (3,691 units) manufactured in Japan. Table 2. Global sales of hydrogen fuel cell vehicles Rank Manufacturer Model 2021 Sales volume (units) 2022 Sales volume (units) Annual growth rate (%) 1 Hyundai, Korea NEXO 9,227 11,179 21.2% 2 Toyota, Japan MIAI 5,935 3,691 -37.8% 3 Honda, Japan CLARITY 294 209 -28.9% 4 Maxus, China EUNIQ7 9 204 >20-fold Other 2,009 5,407 169.1% Total 17,474 20,690 18.4% (Source: “Global FCEV Market with 18.4% YoY Growth from January to December 2022”, SNE Research (February 2023) / compiled by MIRDC (May 2023)) The use of hydrogen as fuel for power systems has become a critical development and expansion strategy for the global commercial vehicle market. However, auto manufacturers pay closer attention to the cost of the use of vehicles, which include factors such as the recharging networks, hydrogen supply chain, green electricity, or the supply and pricing of renewable hydrogen. Therefore, the high-efficiency diesel power system currently used for commercial vehicles remains an alternative option in the transition to net zero emissions. II.   Hydrogen Development of Top Auto Manufacturers The top two Japanese auto manufacturers: Toyota and Honda are early advocates of hydrogen fuel cell vehicles. Toyota has proposed three major strategies for hydrogen fuel cell technologies: improve fuel cell functions, expand into non-automotive sectors, and seek partnerships. Toyota launched its first hydrogen fuel cell vehicle Mirai in 2014 and unveiled the second edition in 2020. Toyota and the US National Renewable Energy Laboratory jointly developed a megawatt-scale hydrogen fuel cell system in 2022. Hydrogen is also Honda’s key energy strategy. Although Honda suspended the mass production of Clarity hydrogen fuel cell vehicles in 2021, it continues to develop hydrogen fuel cell systems for commercial vehicles, ships, aerospace applications, and power devices. Honda has also made significant developments through major partnerships. They collaborated with Isuzu to develop heavy-duty electric trucks powered by hydrogen fuel cells, partnered with GM to work on next-generation hydrogen fuel cell systems, and joined forces with the Japan Aerospace Exploration Agency (JAXA) to develop renewable energy systems for space. Since 2018, the Korean company Hyundai has launched mass-produced hydrogen fuel cell vehicle NEXO, hydrogen buses like Elec City, and hydrogen trucks such as Xcient. In 2021, Hyundai also proposed a vision for the widespread adoption of hydrogen in transportation and other industries by 2040. The company works with partners in different countries to create hydrogen fuel cell system supply and develop hydrogen infrastructure. European auto manufacturers BMW, Renault, and Stellantis are also activele developing hydrogen technology. BMW started by focusing on hydrogen fuel cell engine technologies and worked with Toyota to develop hydrogen fuel cell systems. Renault and Stellantis developed light commercial vehicles powered by hydrogen fuel cells to respond to the challenges of climate change and carbon neutrality. III. Future Development Trends Global net zero emission policies have made hydrogen energy a key development for attaining decarbonization. Therefore, auto manufacturers are actively expanding the commercial applications of hydrogen vehicles through the following four development trends: Technological breakthrough and innovation: Auto manufacturers focus on increasing the performance and efficiency of hydrogen fuel cell technologies including increasing their functions, expanding into non-automotive sectors, and seeking partnerships. By leveraging technological breakthrough and innovation, they are accelerating improvements in range, charging time, and cost-effectiveness of hydrogen vehicles. Diverse model development: In addition to launching passenger vehicles powered by hydrogen fuel cells, auto manufacturers have also developed commercial vehicles such as trucks to expand the use of hydrogen vehicles to other sectors and provide more market alternatives for decarbonization. Cross-border collaboration and joint ventures: Most hydrogen technology development is conducted through cross-border collaboration and joint ventures, facilitating resource sharing, accelerating R&D and technological development in hydrogen energy, and expanding related markets. Building infrastructure: Hydrogen infrastructure must be created to expand the use of hydrogen vehicles. Major auto manufacturers have actively participated in the construction of infrastructure in different regions including the establishment of hydrogen supply stations and development of power supply devices with hydrogen fuel cells to increase the convenience in resupplying hydrogen vehicles.

2023-09-28

Analysis of the Strategic Activities of Benchmark Electric Vehicle Manufacturers Under the Trend of Carbon Neutrality

Introduction Carbon emissions are mostly generated during the “driving stage” of the life cycle assessment (LCA) of vehicles. As such, the primary trend is reducing fuel consumption and transitioning towards electric or hydrogen energy. Therefore, this article will explore the 4 major strategies of major global manufacturers: electrification technology, adopting eco-friendly materials, energy transitioning for manufacturing faciities, and circular recycling. I.    Electric Vehicle Technology The top global automakers are actively expanding their lineup of electric vehicles. Amongst European automakers, the EU has pledged to achieve carbon neutrality by 2050 and ban sales of fuel vehicles in 2035. German automakers such as VW, Audi, BMW, and Mercedes-Benz have all responded positively to this policy. LCA reveals that batteries are the key to decreasing the carbon emissions of a whole vehicle. The source of electricity for charging batteries, as well as the manufacturing technology, will affect the overall emissions of the vehicle throughout LCA. Within the automotive sector, numerous automakers are proactively advancing the research and implementation of fuel cell systems for/towards decarbonization and bolstering energy security, as exemplified in the following cases: Toyota released their first fuel cell vehicle, MIRAI, as early as 2014. But the lack of infrastructure (such as hydrogen stations) saw global sales of a mere 10,000 vehicles. Honda and GM co-developed next-gen fuel cell systems that strive to enhance performance, decrease costs, and extend lifespan. European automakers such as Stellantis and BMW have also accelerated production of fuel cell vehicles, making an active contribution towards carbon neutrality. In response to environmental challenges, they are also furnishing hydrogen-based transportation in the future. II.   Adopting Eco-friendly Materials Steel production, a major part of vehicle manufacturing, is one of the main sources of carbon dioxide emissions. All major global steel companies are actively seeking solutions to this problem. By substituting with hydrogen, there is a global effort to achieve an eco-friendly steel production process. The following are some examples: Mercedes-Benz has pledged to achieve carbon neutrality in the production process and supply chains of newly manufactured vehicles by 2029 at the latest. Along with Swedish steel company SSAB and French automotive component supplier Faurecia, Benz signed an agreement for utilizing eco-friendly steel in the exterior body plating of vehicles, as well as in seats. In contrast, VW has adopted multiple strategies including the recycling of internal aluminum scraps, broken glass, and waste plastics to promote recycling and reuse. BMW has partnered with Emirates Global Aluminium to utilize aluminum materials produced with green energy. BMW is also working with Salzgitter AG to provide low carbon steel. The plan is to increase the proportion of recycled steel materials to 50% by 2030. However, the promotion of green steel is currently facing three major challenges. The industry needs a sufficient supply of renewable energy and green hydrogen, as well as enough waste steel. The third challenge is that current technologies still need to catch up, such as direct reduction hydrogen - electric furnace technology. The industry and governments need to work together to promote production and application of eco-friendly steel. Ⅲ. Energy Transitioning for Manufacturing Facilities Although the initial expenses of adopting advanced manufacturing equipment in factories can be substantial, these investments have resulted in substantial energy savings as the car manufacturing industry undergoes its digital transformation. For example, Japanese company Omron provides smart factory diagnosis services to visualize data like carbon dioxide emissions, electricity, energy consumption, and output. On the other hand, major German automakers use renewable energy to meet energy saving targets. VW factories are generating their own solar energy, while Mercedes-Benz has partnered with German energy suppliers to purchase solar, wind, and hydro energy. Casting and aluminum alloy die-casting generate the highest amount of carbon emissions in the manufacturing process due to the substantial heat energy required. In casting, energy consumption rises during material heating, compressor operation, and heat treatment phases. While the incorporation of clean, renewable energy sources can reduce carbon emissions, challenges like power supply limitations, unit costs, and equipment investments exist. Government subsidies and other support measures can play a crucial role in expediting the transition toward electrification. Ⅳ. Recycling and Circular Production In light of climate change and resource conservation efforts, recycling and reuse of vehicles has gained importance. Even in Europe, where environmental awareness is high, many older vehicles are exported to secondary or tertiary countries, resulting in insufficient recycling. Cars include diverse materials such as metal, glass, plastic, electric products, and electronic components, and each material requires different methods of recycling. Among them, steel has the highest recycling rate, while composite materials containing metal and plastic still pose a challenge as some plastics cannot be effectively recycled. The primary challenge of recycling EVs is in the battery system. EV components include high value critical metals (such as cobalt, nickel, manganese, and lithium) and large structural materials (such as steel and plastic). Complete recycling and reuse of EVs is still not possible under current recycling technology. As such, many automakers are actively working on battery recycling. Current progress includes demonstration plants, research and development, and patent filings. For example, Mercedes-Benz has partnered with a carbon conversion company to convert carbon dioxide to raw materials for products or fuel used to manufacture components. Ⅴ. Conclusion As global automakers accelerate towards carbon neutrality, they have begun to demand downstream suppliers implement energy saving and improvement plans to decrease carbon dioxide emissions. These plans include energy conversion, energy saving in manufacturing processes, recycling, and green materials. Four trends have been observed in the automotive industry in the move towards carbon neutrality: (1) Global benchmark automakers are striving to mass produce EVs to accelerate universal adoption; (2) Vehicle production requires the use of extensive steel, but several challenges are impeding the use of green steel; (3) Vehicle and component suppliers continue to promote green factories and energy management systems, implement green manufacturing processes, promote advanced manufacturing processes and digital transformation, and optimize production; (4) The automotive industry continues to build circular systems for recycling and reuse of critical materials by recycling and re-manufacturing components.

2023-06-30

Automotive Semiconductors Attract Investments at the 2023 Online Industry Investment and Business Opportunities Exchange for the European Region

Taiwan, as a global leader in semiconductors, has become an important partner to major international high-end chip and semiconductor brands. Applications for automotive semiconductors (i.e., automotive electronics, vehicle safety, mobile assistance, communication multimedia, and automotive ICs, etc.) has also been established as a niche field in Taiwan. Our manufacturing capabilities are also trusted by major global automotive companies. According to statistics, domestic output value of automotive electronics was approximately NT$355 billion in 2022-a number that is projected to grow to NT$600 billion in 2025, with a high compound annual growth rate of 14%, due to the continuous development of smart and autonomous driving technology. To enhance investment cooperation between foreign businesses and domestic industries, the Department of Investment Services of the MOEA, held the 2023 Online Industry Investment and Business Opportunities Exchange for the European Region on June 29. By partnering with overseas diplomatic missions and economic divisions in the UK, the Netherlands, Denmark, Switzerland, Italy, Germany, Frankfurt, France, Spain, and Sweden, the DOIS invited major global companies like Volvo, Valeo, and FCA Italy to join in online, and took the opportunity to share the investment environment, capacities, and opportunities within Taiwan`s automobile semiconductors. InvesTaiwan CEO Emile M. P. Chang, in his opening remarks, stated that Taiwan maintains its key role and position with global industries, despite many worldwide economic impacts such as US and China trade conflicts, global inflation, Russian invasion of Ukraine, etc. As such, he invited European businesses to invest in Taiwan and enter global markets together. SEMI Senior Director Jo-Ann Su, shared development trends in the global and Taiwan semiconductor industries and pointed out that in recent years, international enterprises have been working closely with Taiwan companies to promote the growth of the automobile semiconductor industry-recognition from global automobile brands for the technology and innovation of Taiwan`s semiconductor industries. Jason Huang, President of Sentec-Taiwan`s leading integrated manufacturer of automotive and motorcycle electromechanical systems-discussed applications of compound semiconductors in next-generation vehicles. He also explained the structure of the global supply chain for EV power modules, as well as advantages and investment opportunities of Taiwan`s industrial chain. Through the event, DOIS gained a better understanding of the investment needs of foreign businesses, conveyed Taiwan`s investment environment, and enhanced the inclination to invest in Taiwan. A US session is slated for August and shall focus on opportunities for collaboration in satellite communication ground equipment, aiming to encourage foreign businesses to invest in Taiwan. Spokesperson:Li Min-Hsi, Deputy Director General, DOIS Tel.:02-2389-2111 ext. 812, 0966-118-638 E-mail:mhlee@moea.gov.tw Contact:Ms. Chen Ying-Ju, Section Chief, DOIS Tel.:02-23892111 ext. 210 E-mail:yjchen2@moea.gov.tw