The electrification of public transport, through electric buses, is an important growth driver. Many of the cities and local authorities are joining in, through placement of orders to replace existing fleet. For leading global manufacturers, bus procurement constitutes an important and increasingly competitive segment. Among recent major orders, Ebusco signed a fixed contract with the operator company Connect Bus (with operations in both Sweden and Norway) for 46 electric buses by end of 2023. BYD, as another major player, secured an order for 52 electric buses from the operator Transdev. Sweden, along with other Nordic countries, constitute an extremely attractive and contested market space for electric buses due to the huge untapped potential of fleet replacement.
With a pronounced focus on charging network expansion, the investment activity is high in this segment. As of July 2022, the parking operator Stockholm Parkering launched a European Union-wide tender for procurement of 10,000 chargers over a period of four years. Notably, the tender is only for purchase and not installation. Also, the planned procurement is aimed to include the city’s other parking operators. Separately, Stockholm Parkering engaged CTEK for installing 1,000 charging points in one of it operational locations. The company’s long-term aim is to have 100,000 new chargers in place by 2030.
Leading Swedish enterprises are partnering with charging station developers and operators to participate in the space. The Ingka Group, under its IKEA brand, partnered with charging operator Recharge to expand the charging network through its business locations and operations. As part of the plan, IKEA Sweden will have 700 new chargers installed by 2024. Another example is the Swedish commercial property company Regio partnering with charging system developer and operator IONICITY to install and run 108 high capacity (up to 350kW) charging points across 12 sites. The planned capacity, targeted for commissioning by the end of 2023, is aimed at long-distance travelers.
Niche demand sub-segments for charging are gaining focus for investors. One such sub-segment is commercial transportation, particularly the heavy-duty electric trucks deployed in long-distance freight. Though electric trucks are yet to gain any significant share of the entire trucking industry, the growth in stock is generating a sufficiently high demand for dedicated and high-powered charging stations. Equipment companies such as Kempower are among the leading contenders. By the end of 2023, Kempower will supply fast-charging systems for an electric truck charging network. Supported partly by Swedish Energy Agency’s grant, the upcoming network will be in Gothenburg, Söderhamn, Sundsvall, and Nordmaling. In this context, it is noteworthy that a recent report by the Swedish non-profit organization PowerCircle projected the need for 1,200 charging stations meant for electric trucks by 2030.
There is a heightened interest in wireless charging after encouraging results from the trial run in 2018. In March 2022, the automaker Volvo Cars announced a wireless charging project in Gothenburg. It will run for three years and deploy a small fleet of Volvo XC40 vehicles to be used as taxis to ply in the city and recharge wirelessly at the earmarked wireless charging points. The aim is to test the technology’s feasibility and fitment in a shared mobility environment. Other project partners include Volvo’s retailing entities Volvo Bil and Volvo Car Sörred, energy company Vattenfall and its charging network InCharge, city energy company Göteborg Energi and Business Region Gothenburg, a municipal economic development agency owned by the City of Gothenburg.
The company Electreon, involved earlier in the pioneering Swedish wireless charging project, is also involved in the extension of the same project. This €2 million project, funded by the Swedish Transport Administration, will test for upgraded charging capacity features besides software control systems. As the company is implementing similar projects in France, the trial project could benefit from enhanced technology partnerships and know-how before a wider-scale rollout. The company is also expected to lead the race as market players prepare for Swedish authorities’ tender for constructing wireless charging-equipped roads in the priority freight corridors.
The opportunity spectrum also includes the battery manufacturing ecosystem. Northvolt is in process of establishing a Gigafactory (called Northvolt Ett) in the Northern Sweden, with a maximum capacity of 100GWh in cathode material. The facility, aimed for commissioning by 2024, will enable assembly at multiple Northvolt facilities. Importantly, Northvolt has partnered with a battery recycling entity in Norway for eventual integration with its planned battery manufacturing process. Other enterprises have similar projects in pipeline. Volvo Group is in the process of finalizing a battery manufacturing plant in Sweden’s Skaraborg region. Planning works are underway for requisite regulatory approvals to establish the production site.
