Taiwan Continues Down EV Road Driven by Electrifying Prospects
2010/06/17 | By Quincy LiangWith rising investment and attention paid to electric vehicle (EV) development globally, Taiwan's automotive sector is also trying to jostle for position to tap this potentially lucrative, promising market. However the stale hurdle stands in the way of Taiwan's carmakers, who still are at the mercy of foreign counterparts having monopolized technologies over the past 50 years. One encouraging aspect is that many makers in Taiwan are producing competitive aftermarket (AM) auto parts.
Besides, to build practical EVs in Taiwan holds fateful significance as the island imports more than 98% of energy, with fossil fuels still being the major driver and generating shameful levels of greenhouse gases and smog.
One often reported benefit to EV development is creating the opportunity to build niche key modules for EVs, by tapping synergies from integrating Taiwan's world-class information and communication technology (ICT) R&D and manufacturing capability with car-making technologies, specifically those related to intelligent vehicle and electro-mechanical technologies. Inspired by such grand goals, the official EV-promotion policy aims to build electric scooter, light electric vehicle (LEV), city electric vehicle (CEV), neighborhood electric vehicle (NEV), and electric public bus etc.
EV Industry Cluster
At a recent seminar organized by the Industry & Technology Intelligence Services (ITIS), a government program managed by the Department of Industrial Technology (DoIT) of the Ministry of Economic Affairs (MOEA), S.T. Huang, director of the metal production process R&D center of the Metal Industries Research & Development Centre (MIRDC), said that the government has commissioned the domestic Taiwan Automotive Research Consortium (TARC) to map out strategies to develop an EV industry cluster on the island, aiming to further upgrade Taiwan's international competitiveness in the EV industry.
Working with other members in the TARC, including the Mechanical and System Research Laboratories (MSL) of Industrial Technology Research Institute (ITRI), the Automotive Research and Testing Center (ARTC), the Chung-Shan Institute of Science and Technology (CSIST), and Hua-chuang Automobile Information Technical Center Co. Ltd. (HAITEC), MIRDC is in charge of key EV issues as reducing weight of body and chassis; chassis integration, analysis, design, and manufacturing etc.
Big Potential in China
"Most people are less than optimistic about sales volume of EVs over the next few years due mainly to battery technology, vehicle prices, infrastructure, government policies etc. Such pessimism is in fact due to neglecting the high potential in the huge China market. Besides being the largest market for internal combustion engine (ICE) cars in 2009 when about 13.6 million new cars were sold, China's annual sales volume of electric bicycles and scooters already total 30 million units. Also over 30 major cities in China now prohibit ICE motorcycles and scooters from entering, resulting in massive demand for urban EVs," says Huang of the MIRDC.
At least 13 major cities in China are supporting the central governmental program to promote EVs as mass transport, with the number of cities increasing to drive many major automakers to launch EVs, says Huang.
Huang forecasts that over the next 10 to 15 years, all kinds of EVs, including hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), extended range electric vehicle (EREV), and fuel-cell electric vehicle (FCEV) etc., will continue to grow, to gradually displace ICE vehicles' penetration to less than 50%.
"China is inevitably the future market of Taiwan's EV sector, regardless of its development; while our ultimate goal is to be the world's production base of EV key-system and parts driven by official policy and private makers' joint effort," says Huang.
4 Strategic Goals
The TARC has mapped out four clear strategic goals to develop the EV industry on the island, focusing on the development of key systems and modules to transform Taiwan into a global ODM (original design manufacturer) for key EV modules, as well as setting up globalized makers of power management systems and power propulsion systems.
To achieve such goal, the TARC is trying to set up multi-module, parallel-connected rapid recharging stations island-wide, with charging stations to be capable of power conversion efficiency of 90% and comply with SAE J1772 and UL 2202 standards.
Key EV modules are being planned or developed, according to Huang, including 50kW/185Nm vehicle-standard electric-power propulsion system with rated output power efficiency of 91% and power density of 1.11 kW/kg, as well as 10/30/40 Ah modularized battery systems with high-voltage safety control and intelligent battery management systems.
Chassis-wise, the TARC aims to develop a technique to developing EV chassis featuring balanced battery placement, 10% lighter main structure, added room to place 25% to 300% battery capacity, stronger crash protection etc. Other auxiliary power systems as electric power-assist brakes and a 330V electric compressor are also targeted.
The first key-module development strategy is based on a high-occupancy vehicle (HOV) as a postal BEV to be developed by ITRI for Chunghua Post Co., Ltd. The government aims to put on roads 1,000 BEVs for governmental units and state-run enterprises over the next several years.
5 Industry Clusters
The second goal is for TARC to start R&D alliances to set up five major EV key-parts industry clusters in Taiwan.
5 Clusters
1. Drive motor/control module, EV auxiliary systems (such as EV air-conditioning system, electric power steering system (EPS), electric parking brake System (EPB), generator system, power-converter devices etc.
2. Energy storage and BMS (lithium-ion battery materials and battery pack, super-capacitor modules, power management module, rapid-charging system module etc.
3. Key technologies and system integration as EV propulsion system, EB-body weight-reduction module.
4. Clean Zone operated by local government, recharging-station operator etc.
5. Niche EVs as LEV/NEV, BEV, electric utility vehicle (E-UTV), e-scooter, e-bus etc.
The TARC set up the EV Industry Cluster protocol website on March 1 to promote the five major EV industry clusters as well as enhance inter-member interactions and exchanges.
EV Innovation Park
The third strategy is to set up an EV innovation industrial park to target a comprehensive industry value-chain, with the park to be located in the Changhua Coastal Industrial Park, also the home of the ARTC.
Other strategic goals include setting up a EV and telematics experiment and operation platform; introducing international technologies so as to provide integrated capacity in R&D, certification, try-and mass-production; soliciting international vehicle makers into the park to set up production or joint development; and trying to tie up with mainly partners in China to tap the international market.
Flagship Companies
With official support, several leading companies will likely form four flagship companies to integrate available resources in Taiwan to tap the rapidly rising global EV business.
The first is the Taiwan Battery Co. (TBC), which aims to achieve several major goals including mapping out industry-leading battery standards to enable Taiwan to meet global demands; develop world-leading technologies in EV battery safety and power density; develop niche EV models and fleets to gain increasingly more international certification experiences and know-how; and supply complete battery packs to local and foreign EV makers under the TBC label.
By 2020, according to Huang, Taiwan expects the annual production value of Taiwan-made EV battery products to total US$15.6 billion, creating 50,000 jobs a year, with the total investment to reach US$4.7 billion over the next 10 years. If all goes as planned, according to Huang, Taiwan expects to become a top-three producer of special chemicals for EV batteries as well as EV power cells (lithium-ion).
TBC will likely consist of lithium-ion battery maker E-One Moli Energy Corp. (fifth-largest li-ion battery maker), Simplo Technology Co., Ltd. (world's largest 3C, or computer, communication, and consumer electronics-use lithium-ion battery pack maker), Delta Electronics, Inc./Lite-On Technology (top-two power-supply system maker globally), the Taiwan Cabinet Development Fund (state-run investment fund for strategic industry development), Yulon Motor Co./Sanyang Industry Co., Ltd./ Kwang Yang Motor Co., Ltd. (major auto and powered two-wheeler (PTW) makers on the island), and international vehicle makers or EV operators.
Second Company
The second company would be Taiwan Power IC Co. (TPIC), expected to be set up by targeted investors as Taiwan Semiconductor Manufacturing Co. (TSMC, the world's largest dedicated semiconductor foundry), MediaTek Inc. (global-leading IC design company), Teco Co./Hon Hai Group (global-leading system makers), the Executive Yuan Development Fund, and local and foreign vehicle makers.
TPIC aims to achieve several goals: jointly develop GaN chips with nano-level device laboratories at national-level research institutes; develop air-cooled high-voltage power chips for EV power controllers as well as power-conversion applications as air-conditioning, solar and wind generation systems etc.
Haung says currently power and controller ICs (PACIC) account for about 40% of the total cost of an EV's energy system. Major international companies manipulate markets, but their products are expensive and based on water-cooling, leading to higher production cost and larger sizes. Taiwan, a major semiconductor design and manufacturing nation, can find its niche in the EV power-IC business, Huang says.
Third Company
The third targeted firm to be set up by the government is Taiwan Chassis Co. (TCC). According to Huang, Taiwan lacks independent capability to develop homegrown EV chassis, a deficiency the new company is expected to address.
TCC will solicit participation from several major investors as automotive chassis makers Kian Shen Metal Works Co., Ltd., Wuu Shiang Industrial Co., Ltd., Hsu-I Metal Industry Co., Ltd.; chassis material companies China Steel Corp., Alex Global Aerospace Technology Inc. etc.; international chassis developer and maker Magna; domestic EV makers Yulon Motor Co., Pihsiang Electric Vehicle Manufacturing Co., Ltd. etc., and the Taiwan Cabinet Development Fund.
TCC aims to build key technologies for developing and making lighter EV chassis and full capacity for system integration backed by help from the TARC members; develop homegrown EV chassis through partnerships with local EV makers; solicit investment to integrate other systems as battery and propulsion to build local capacity for roadworthy chassis; and tap the global EV supply chain through tie-ups with international tier-1 companies as Magna.
TCC aims to be a company that simultaneously owns all the technical capability in chassis test, design, manufacture and integration, Huang said.
Fourth Company
The fourth company will be Taiwan EV Operation Service & Management Co., to develop successful EV-operation business models, whose members will likely include the state-run power supplier Taiwan Power Co.; assembled-car makers as China Motor Corp., Yulon Motor Co., Prince Motors Co. etc.; system developers like Teco Electrical Machinery, Amita Technologies Inc., Delta Electronics, Inc. etc.; the Taiwan Cabinet Development Fund; and a technology team consisting of local and foreign experts.
TEOSM aims to achieve strategic goals, such as establishing an EV operation team who takes into account official policies, technical strength on the island, and demand from the local EV industry; promote and set up the EV-operation infrastructure throughout Taiwan to provide a sound operation environment for system integration, operation planning, and fleet management; link domestic up- and down-stream EV makers and develop business models that are globally competitive.
Conclusions
Huang says that the booming EV industry is creating unprecedented opportunities to transform Taiwan's vehicle value-chains, into ones more oriented toward design, R&D, marketing and branding. Once this grand project succeeds, Huang says, Taiwan will become a base to develop and improve EV technology, as well as an EV key-parts OEM/ODM globally.
Looking as far as 2030, Huang says, the EV industry could be a mega-star generating over US$31.25 billion in annual production value and creating 400,000 jobs. Such immense prospect should be sufficient motivation to drive all those involved in Taiwan and its foreign partners over the next years to stay focused on turning the wheels of EVs into practical reality.