Will AI make electric vehicles cheaper for SA’s truck operators?
As the global push for sustainable transport intensifies, South African truck operators are increasingly looking at battery-electric vehicles (BEVs) as a viable alternative to traditional diesel vehicles. However, these vehicles are super expensive. Enter artificial intelligence (AI), which could make those BEVs considerably more affordable.
As we all know, BEVs offer numerous environmental and economic benefits, including reduced emissions and lower operational costs. Additionally, as countries and businesses worldwide commit to stricter environmental standards, South African transport companies that adopt BEVs may find themselves in a stronger position to partner with international companies looking for low-emission logistics options.
Operational cost savings are another key incentive. While BEVs come with a higher purchase price, they often have lower maintenance and fuel costs compared to diesel trucks. Electric motors have fewer moving parts, leading to less wear and tear, and electricity is generally cheaper than diesel, especially if sourced from renewable energy. This means that, over time, BEVs can offer competitive total cost of ownership compared to traditional trucks.
Costs are a killer
Despite these advantages, BEVs remain prohibitively expensive for many fleet operators, primarily due to the high costs of battery development and production. Battery packs are often the most expensive component of an electric truck, typically contributing up to 40% of the vehicle’s total cost. In low-volume production markets like South Africa, the challenge is particularly acute – this is a very price-sensitive market.
Developing a custom battery pack is usually a multi-million-dollar investment, often exceeding $30 million. It can take up to four years (and, as we all know, time is money). Consequently, many operators are ditching the BEV option altogether. However, this is where IONETIC – a UK-based start-up founded in 2022 – is stepping in, and offering a solution.
Battery pack costs and development time go down
With its proprietary Arc system, IONETIC has pioneered a software-accelerated, AI-supported approach to custom battery pack design. This technology is designed to enable original equipment manufacturers (OEMs), including truck makers, to access high-performance, cost-effective battery packs without the typical delays and financial burden.
IONETIC’s Arc system drastically reduces the development time for custom battery packs, cutting the timeline in half compared to traditional methods. Instead of the usual four-year cycle, Arc enables a much quicker route to market. The system also delivers significant cost savings, slashing the traditional $30 million investment typically required for bespoke battery packs.
Three-part approach to affordable battery packs
The Arc system brings together software, hardware, and flexible manufacturing to make high-quality battery packs more affordable and easier to produce. Here’s a breakdown of how each part of Arc helps to cut costs and speed up development:
- Software: Arc uses AI-powered design tools that simplify the usual, time-consuming process of battery design. These tools quickly create and improve battery pack designs, reducing the need for manual tweaks. This saves time and reduces labour costs, making the whole process cheaper.
- Hardware: Arc’s hardware is based on a set of tested and approved components, so there’s no need to start from scratch each time. By using standard parts, IONETIC can reduce both the risk and time involved in creating each battery pack. Arc also allows for different battery formats, so manufacturers can choose the parts that best fit their needs without sacrificing quality.
- Manufacturing: Instead of building a new, costly production line for every customer, IONETIC uses a flexible manufacturing system similar to those used in making computer chips. This lets them handle multiple customers and various design needs without the usual setup costs and delays.
Greener future for South African logistics
Battery-electric trucks could provide South African operators with a viable, sustainable transport solution. However, the high cost of battery packs has remained a significant obstacle. IONETIC’s Arc system addresses this issue head-on by reducing both the cost and time associated with developing custom battery packs. Simply put, the Arc system could make BEVs much cheaper. This opens new possibilities for truck operators to adopt BEVs in a cost-effective manner – potentially making South Africa’s logistics sector much greener in the future.
