As we push towards the goal of net zero by 2025, the era of the internal combustion (IC) engine is drawing to a close.

Although consumer reliance on the humble petrol- or diesel-fueled motor car has been climbing at a steady and predictable pace ever since Henry Ford-style mass production caught on, there has been a modest dent in the demand for traditional vehicles, with nearly one in five cars sold in 2023 being electric.

So will this trend continue to grow? We would argue yes, but putting a timescale on this is a tricky task: the predictability we have seen with IC vehicles doesn’t apply to everything. Not all innovations buck conform to one clearly defined trend. And this appears to be the case with electric vehicles.

With nearly 20% of new cars being electric in some regions, electric vehicles (EVs) are steadily increasing their market share. In fact, in countries like Norway, adoption reached around 80% in 2023. This year, it’s projected that 25% of passenger car registrations will be electric, surpassing 17 million units in global sales. These numbers indicate a significant upward trend in EV adoption, especially in recent years.

Nonetheless, even taking these encouraging figures into account, EVs still only represent a small proportion of all vehicles on the road. This needs to change otherwise there’s a danger that EV adoption could stagnate.

What needs to change to boost EV adoption?

Apart from the natural laws of supply and demand, the main limitations hindering EV development are most notably cost, slower recharge rates and limited range.

This is where batteries come in as the key to addressing these hindrances. 

Batteries designed for vehicles focus on overcoming a range of challenges. Weight, cost, and the sourcing of materials are all significant. Beyond these, one factor stands out. With, nearly 50% of consumers claimed they’d need a higher real-world range to consider switching from ICE vehicles to electric cars according to a recent survey by GoCompare – the limitations posed by a battery’s range is a key factor to be addressed. 

This means that we are a long way off being reliant on fossil fuels to power our vehicles. However, a solution might be closer than we think. 

LionVolt’s cutting-edge battery technology is a driving solution for electric cars and sustainable aviation by creating groundbreaking 3D solid-state technology for next-gen batteries.This new technology could be key to far greater EV uptake at a scale that could set a steep new trend.

What are 3D solid-state batteries, and how do they work?

The key to overcoming the challenges limiting the shift towards electrification are batteries and cells that are much faster to charge than those currently used and can extend range and performance. Central to these developments are advances in lithium-ion batteries. 

In terms of range, the science revolves on energy density – how much energy can be packed into each battery for a given weight. To achieve high density, we are seeing a shift to more advanced products from materials commonly used in today’s cells. New anode technologies, including silicon and lithium, will increase today’s range and can be ‘dropped into’ the existing supply chain. To get a significant increase, the production process involves switching the flammable liquid common to old-style batteries with a solid, non-flammable material.

Obvious benefits to drivers and the planet alike range from,faster charging, higher performance, intrinsically higher standards of safety, longer battery life, and radically lowered carbon footprints

The real gamechanger here is extended range: driving ranges upwards of 800 km—or about 500 miles—are no longer the stuff of EV drivers’ imagination and this could be the stepchange we need for mass adoption. 

LionVolts innovations in the battery space address consumer demands for extended range while also offering a safer, more sustainable alternative to traditional batteries. 

This lays the foundations for an increased uptake of EVs in the future, but electric cars are not where the innovations end. LionVolt are also developing larger versions of these batteries that have the very real potential of fueling aviation. We could say when it comes to electrification to achieve net zero, the sky’s the limit (no pun intended!).

by Lars Rensing, CEO of DPP Solution Provider, Protokol

It isn’t surprising that waste is becoming a growing concern for businesses today, particularly when we note that 50 million tonnes of e-waste are generated globally every year. To put it frankly, the e-waste produced by end-of-life products and their overall carbon footprint throughout the value chain are having detrimental effects on the planet and must be acted on promptly. Now more than ever, businesses need to start implementing processes to tackle these issues. The EU has already started implementing initiatives to encourage businesses to act in support of a circular economy. The cornerstone of the EU’s efforts is the Ecodesign for Sustainable Products Regulation (ESPR) which came into force on the 18th of July 2024.

The ESPR is a framework for the setting of ecodesign requirements for sustainable products. It will apply to select product groups across multiple industries including – but not limited to – textiles, furniture, electronics, and chemicals industries, and it will also apply to businesses that place products within these groups on the EU market, regardless of whether they were produced there.

As part of the ESPR, businesses will need to work towards the implementation of “Digital Product Passports” on their items, which will be mandatory for products that fall within the identified product categories.

What is a Digital Product Passport (DPP)?

In essence, DPPs act as a digital record of a physical product, securely keeping track of information across its lifecycle. This can include anything from the material used in its production, the environmental impact of its production, a record of its authenticity, and  instructions for end-of-life handling. In most circumstances, this data will be accessible via a data carrier like a QR code or barcode affixed to a product and accessible by scanning with a device such as a smartphone.

DPPs will largely support the ESPR’s circularity goals by providing transparency into the lifecycle of a product, and by implementing DPPs, the ESPR aims to encourage all those in contact with a product to be more mindful of its sustainability and inspire circular thinking.

Consumers are empowered with the information needed to support more sustainable purchasing and to contribute to more eco-friendly forms of disposal when a product reaches the end of its life, while businesses have the potential to use this newfound transparency to make their processes or sourcing of materials more sustainable.

Looking at the impact holistically, DPPs provide an educational function, one that encourages all parties in the value chain to make informed decisions on the type of products they are using.

Beyond regulatory compliance

Alongside the EU’s implementation of DPPs from a sustainability perspective, DPPs also prove beneficial to businesses directly when concerning notions of brand engagement and customer loyalty. For example – if we stay on the topic of sustainability – DPPs help businesses to prove the sustainability credentials of their products to the end consumer and can help to avoid “greenwashing” claims. By verifying authenticity and keeping a history of any repairs made to a product, businesses could even utilise the information in DPPs to facilitate take back or resale schemes, encouraging users to recycle their products, turning them back into usable products to be resold – another effort towards the circular economy and proving that sustainability is important to a customer base.

Furthermore, for products that can be added to or form part of a collection, complementary products could be recommended to customers within the DPP and compatibility checked; helping maintain contact and create return customers. DPPs could even be integrated with existing loyalty platforms or used to provide rewards in the future so that customers are compelled to engage with the brand more.

 The initial task for businesses

While the product groups that the regulation will impact have been outlined, the delegated acts – which will provide more information and outline requirements in more detail – are expected to be announced in the coming months so businesses can prepare for the deadlines for compliance ( 2027 for batteries, with other product groups expected to follow shortly afterwards).

This process can seem particularly daunting for businesses at the start of their journey to compliance. However, in this instance, the first step should be to assign a person within the business to be at the helm of the upcoming effort and for them to simply learn all they can about the regulation and put in a process to keep abreast of updates. As part of this, businesses can reach out to a DPP advisor to gain a better understanding of industry-specific impact so they are better prepared to put together a coherent strategy ahead of the mandate.

On top of this, taking a further step to begin mapping where relevant data might be held within the business, or by those in the supply chain, and starting to evaluate the partners for DPP implementation will put the business in an even better position ahead of the ESPR.

The upcoming DPP mandate will prove challenging for businesses but vastly significant in achieving the EU’s environmental goals for a more circular economy. How businesses decide to approach the upcoming legislation will dictate whether they simply comply or comply and thrive.

As the UK government continues to push for greener initiatives, electric cars have become increasingly popular. The main attraction for both employers and employees is the EV salary sacrifice scheme.

By participating in an EV salary sacrifice scheme, both employers and employees can enjoy cost savings and contribute to environmental sustainability along the way! This article will delve into the specifics of how these schemes operate, the financial advantages they offer, and the broader positive impacts on sustainability.

We will provide a comprehensive overview of the mechanics behind EV salary sacrifice schemes and discuss the various ways in which they benefit both employees and employers, ultimately supporting the transition to a greener future in the UK.

What is an EV Salary Sacrifice Scheme?

An EV salary sacrifice scheme is a flexible financial arrangement that permits employees to lease an EV through their employer. The key feature of this scheme is that the leasing cost is deducted directly from the employee’s gross salary before tax and National Insurance contributions are applied. By reducing the taxable income, employees can benefit from substantial savings on both tax and National Insurance payments. This arrangement not only makes EVs more affordable for employees but also aligns with governmental incentives to reduce carbon emissions.

For employers, implementing an EV salary sacrifice scheme can lead to cost efficiencies as well. The reduction in National Insurance contributions on the employee’s reduced gross salary can offset some of the costs associated with administering the scheme. Additionally, such programmes can enhance the overall benefits package offered by the employer, making the company more attractive to prospective and current employees.

Benefits for Employees

1. Tax and National Insurance Savings

By opting for an EV salary sacrifice scheme, employees can benefit from reduced tax and National Insurance contributions. Since the lease payments are made from the gross salary, the taxable income decreases, resulting in substantial savings.

2. Access to Premium EVs

Leading salary sacrifice car schemes often provide access to high-end electric vehicles that might be otherwise unaffordable. Employees can enjoy the latest EV models with advanced features, contributing to a more enjoyable and environmentally friendly driving experience.

3. Lower Running Costs

Electric vehicles typically have lower running costs compared to traditional petrol or diesel cars. With savings on fuel, reduced maintenance costs, and exemptions from certain charges (such as London’s Congestion Charge), employees can enjoy significant long-term financial benefits.

4. Environmental Impact

Driving an electric vehicle reduces the carbon footprint and supports the UK’s goal of achieving net-zero emissions by 2050. Employees can take pride in contributing to a cleaner environment.

Benefits for Employers

1. Attract and Retain Talent

Offering an EV salary sacrifice scheme can enhance an employer’s benefits package, making it more attractive to potential recruits. It also helps in retaining current employees by providing them with valuable and cost-effective benefits.

2. Cost Neutrality

For employers, EV salary sacrifice schemes are often cost-neutral. The savings on National Insurance contributions can offset the administrative costs of running the scheme, making it an economically viable option.

3. Corporate Social Responsibility (CSR)

Implementing an EV salary sacrifice scheme demonstrates a commitment to sustainability and corporate social responsibility. This can improve the company’s public image and align with broader environmental goals.

4. Employee Well-being

Providing employees with a cost-effective means to drive electric vehicles can contribute to their overall well-being. With lower running costs and the convenience of driving a new EV, employees may experience reduced financial stress and increased job satisfaction.

How to Implement an EV Salary Sacrifice Scheme

1. Assess Feasibility

Evaluate whether an EV salary sacrifice scheme is feasible for your organisation. Consider the number of interested employees, potential cost savings, and administrative requirements.

2. Choose a Provider

Select a reputable provider that offers a range of electric vehicles and comprehensive support services. Ensure they can handle the administrative tasks and provide a seamless experience for both the employer and employees.

3. Communicate the Benefits

Educate your employees about the advantages of the scheme. Highlight the financial savings, environmental impact, and access to premium EV models. Provide clear guidance on how they can participate in the programme.

4. Monitor and Review

Regularly review the scheme’s performance to ensure it continues to meet the needs of your employees and the organisation. Gather feedback and make adjustments as necessary to enhance the programme’s effectiveness.

Conclusion

The EV salary sacrifice scheme offers a win-win situation for both employers and employees in the UK. With significant financial savings, access to premium vehicles, and a positive environmental impact, it’s an attractive option for forward-thinking organisations. By implementing such a scheme, employers can demonstrate their commitment to sustainability and employee well-being, while employees can enjoy the benefits of driving an electric vehicle at a reduced cost.

Adopting an EV salary sacrifice scheme is a step towards a greener, more sustainable future for everyone.