The amount of greenhouse gases avoided by XPeng's EVs sold in 2020, compared to internal combustion vehicles
delivered as of end of 2020
Recycling and Reuse Rate
as of May 2021
The Path to Drawdown: Electric Cars
The electric vehicle (EV) was first built in 1828, but being unable to surmount the challenge of building a lightweight, durable battery with adequate range meant that internal combustion engines have dominated the automotive and transport landscape since the 1920s.
Today that landscape is changing thanks to supportive policies and falling costs. More than 1 million EVs now take to the roads. The difference in impact on the climate is remarkable. Compared to internal combustion vehicles, CO2 emissions drop by 50% if an EV’s power comes off the conventional grid. If powered by solar energy, emissions are cut by 95%. Once households purchase EVs, their operating costs are often cheaper than gas-based cars, too.
What once used to be a limitation for EVs - the question of how far the car can travel on a single charge - is now much less of a concern. The average range of a battery electric vehicle produced in 2020 is about 217.5 miles, up from 124 miles in 2015.
What’s making this increase in mileage possible is the continuing development in battery capacity. Global EV battery capacity is expected to increase from around 170 GWh per year today to 1.5 TWh per year in 2030. At the same time, the cost of batteries is falling as their production reaches greater scale.
To be on track to remain under 1.5ºC of warming, 100% of passenger cars and vans (p. 138) need to be running on electricity by 2050. This is a jump from 5% of cars and 0% of vans in 2020, respectively. Accomplishing this overhaul of the transportation landscape means EV production and ownership need to continue to expand over the next three decades:
- 11 million EV cars and vans were on the road in 2020
- 2 billion EV cars and vans (100% of total global sales) need to be on the road by 2050
This would require a CAGR of 18.94% from 2018-2050
XPeng Inc. (stock ticker: XPEV) makes smart electric vehicles in China. They offer SUVs under the G3 name and four-door sports sedan under the P7 name. The company also provides sales contract, maintenance, super charging, vehicle leasing, and ride-hailing services. XPeng Inc. was founded in 2015 and is headquartered in Guangzhou, China.
XPEV's Role in Drawdown
XPeng sells electric vehicles that are targeted at the mid- to high-end segment in China's passenger vehicle market. Their P7 model offers a range of up to 439 miles on a single charge and began to be sold in April 2020. So far, XPeng has delivered 15,062 units of the P7. Their G3 model is an electric SUV and has a range of up to 323 miles. Both models incorporate autonomous driving, parking, and safety features.
XPEV: What We Like
XPeng has a couple of initiatives (p. 72) to enhance energy efficiency and increase their use of clean energy. They're things like:
- Developing a solar PV carport and roof power project at their Zhaoqing plant, which will have a 22.6 MW generation capacity and reduce !11,000 tons of GHG
- Constructing solar PV projects at their Guangzhou and Wuhan Manufacturing Plants - expected to start generating energy and connect to the grid in 2023 and 2025, respectively
- Installing LED light boxes at assembly lines in their manufacturing plants, which are 70% more energy efficient than fluorescent lights in traditional car factories
XPeng also offers EV charging stations for their vehicles. According to the ESG Report (p. 80), there were over 1,000 XPeng Supercharging Stations in their free charging network, covering 160 cities. EV chargers are a critical infrastructure for a wider adoption of EVs, and XPeng is helping this process along.