In case you weren’t paying attention, everything is going electric. The need for more energy efficient, environmentally friendly solutions continues to drive not only consumer adoption of electric cars and two-wheeled vehicles but also electric power adoption in recreational vehicles, power sports and a variety of industrial applications. The year 2015 saw the global stock of 1 million electric cars on the road exceeded, closing at 1.26 million1. Studies find that electric cars could make up 11-15% of new car registrations by 2029 (versus less than 1% today) with the U.S., Japan, Norway, China, France, and the U.K. leading the way2.
A counterpart to electric car growth is the rising demand for e-mobility applications such as e-scooters, motorcycles and low speed electric vehicles (LSEV) which continue to be adopted at a rapid pace as an alternative means of transportation at a much lower cost. The e-mobility market represents a multi-billion dollar opportunity predominately in China and India, but extending to Europe as advances in battery technology extend the single-charge travel distance. While electric cars and buses tend to steal the limelight of industry coverage, we note that the electrification of golf carts, ATVs, and industrial platforms such as aerial work platforms, floor sweepers and lift trucks has been well underway as the vast majority of these vehicles have converted to electric power.
The transition towards mass adoption of electric vehicles is on track due to continuous improvements in battery technology, battery management systems, and motor design. With battery costs potentially decreasing to $150 to $200 per kilowatt-hour over the next decade, electrified vehicles across a broad set of applications will achieve cost competitiveness with gas powered vehicles. One area of increasing investment has been extending battery capacity with lithium-ion technology. A lithium-ion battery offers high power capability, higher cycle life, longer run times, and can be as much as four times lighter and three times smaller than its popular lead acid counterpart3. However, these advantages also come with a higher initial cost, and the need for a reliable battery management system (BMS) to regulate charge time to prevent damaging overcharge. It is important to note that the battery alone does not solve the challenges associated with electric vehicle adoption but rather the battery must work in conjunction with a sophisticated motor design and integrated with an appropriate BMS to have a multiplicative impact on vehicle performance.
Delta-Q Technologies, in Burnaby, Canada, focuses on electrification applications in industrial, e-mobility and recreational markets. The company successfully addresses a variety of applications with its extensive understanding of the charging requirements of lead acid and lithium-ion batteries and with a library of over 190 battery charge profiles built through exhaustive testing in their in-house battery chemistry lab. The company works directly with battery manufacturers to integrate with battery management systems to ensure safe operation of the battery and the charger system. Adhering to a firm-wide culture of quality assurance, high reliability design and continuous improvement, Delta-Q is able to develop products that consistently surpass competitor performance metrics, offering lower total cost of ownership through higher availability and extended battery cycle and hardware (charger) life. With over 15 years of superior design and manufacturing experience, the company is recognized for its consistent, unparalleled charger quality and automotive level product reliability.
Mooreland Partners is pleased to have recently advised Delta-Q on its acquisition by Zapi S.p.A. of Poviglio, Italy. Delta-Q is broadly recognized as a technology leader innovating to enhance value both for OEMs and end customers. The company was first to market with high-frequency digitally controlled charging in the motive industrial markets (increasing charge efficiency), with a sealed charger (reducing quality issues), and with a connected charger (enabling data capture and battery pack history/maintenance insight). The company has developed extensive expertise in a broad array of battery chemistries (including lithium-ion) and has developed proprietary charging profiles that provide Delta-Q customers meaningfully lower total cost of ownership than competitive solutions.
For more information on the transaction, please see here.
Mooreland has now completed three transactions in the vehicle electrification space, selling Epyon to ABB, IES Synergy SA to Eurazeo, and now DeltaQ to Zapi S.p.A.
Mooreland Partners is excited to remain at the forefront of transaction activity in this growing sector of the smart mobility market
- International Energy Agency
- KPMG’s Global Automotive Executive Survey
- Delta-Q Technologies
James Nie and Charles Bullock
James joined Mooreland in 2015 and is a member of the Industrial Technologies and Electronics team, with experience spanning across Investment Banking and Equity Research. Prior to Mooreland, James was an Equity Research Associate at Needham & Co. covering the Internet and Digital Media sector.
Charlie joined the firm in 2007, and was one of the founding partners of Mooreland’s West Coast practice. Charlie is a senior member of the Industrial Technologies and Electronics team, with an emphasis on component technologies, advanced manufacturing, industrial IoT and connected vehicles. Charlie brings over 25 years of investment banking experience to Mooreland.