Page 31 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

According to the IEA, BEVs sold globally have a range, on average, of about 250km versus
FCEVs’ ~400km (e.g. Toyota Mirai). However, this extra mile comes at a price in terms of
higher vehicle cost. Cost reduction in fuel cells and storage tanks, and high utilisation of
stations shall render FCEVs more competitive than BEVs.

TCO by powertrain, range & fuel: FCEVs poised to become competitive

0.9
Synthetic fuel (air capture)
0.8 Synthetic fuel (best case)
Total cost of ownership (USD/km) 0.6 Refueling, charging infrastructure
Low utilisation of infrastructure
0.7

Electricity, fuel
0.5
Operations and maintenance

0.4

Base vehicle cost
0.3 Battery, fuel cell
FCEV BEV BEV ICE FCEV BEV ICE
400 km 400 km 250 km Hybrid 400 km 400 km Hybrid
Today Long-term

Source: Edelweiss Research, IEA

Lithium and cobalt
Rising BEV raw material cost provides further edge to FCEVs prices have spurted

289% and 72%,
Costs of raw materials critical to EV manufacture, namely lithium and cobalt have increased
by 289% and 72%, respectively, over the past two years. In comparison, silicon, which is a respectively, over the
key input for solar photovoltaic cell manufacturing, has risen by 196%. past two years and
temporarily silicon
Notably, the cost of silicon has started correcting rapidly as well (down 52% over the past as well by 196%;
two months). This potentially gives FCEVs (hydrogen-based vehicles) a further edge over abundance of silicon
BEVs. (26% of earth’s crust) is

rapidly reducing prices
Furthermore, silicon (from sand) is the second most abundant element. It is 26% of earth’s
crust compared with 0.0025% for cobalt and 0.002% for lithium. This suggests that silicon though—having halved
supply can adjust relatively quickly to rise in demand, whereas cobalt and lithium prices in just two months
may permanently rise if EVs become the mainstay.

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