Charging Infrastructure: A Key Piece for EV Adoption in Mexico

On June 29 this year, I had the honor of being invited to the 2023 Korea-Mexico Economic Forum, organized by the Embassy of the Republic of Korea, the Ministry of Foreign Affairs (SRE), and the Mexican Business Council for Foreign Trade (COMCE). This event marked the 60th anniversary of diplomatic relations between both countries and served as a platform for experts from both nations to share ideas and explore cooperation in innovative sectors, such as the ecological industry, semiconductors, and electromobility.

The topic of electromobility remains a recurrent subject at events of all levels, as well as at global forums and conferences, given its significance not only for the Mexican automotive industry but also for the worldwide automotive sector undergoing technological restructuring that will impact the entire supply chain.

While the presented topics covered areas like solar energy, cross-border trade, vehicle fleet decarbonization, and human talent, one of the most compelling topics, not only at this forum but also in our country, is the issue of electric vehicle charging infrastructure. This topic is critical for the development of electromobility in Mexico.

Electric Vehicles: The Great Disruptor

To understand the importance of charging infrastructure, we must acknowledge its origins. While electric vehicle technology dates back approximately 135 years to the launch of the first electric car, the Flocken Elektrowagen, invented by Andreas Flocken, the modern era's surge owes much to a major player: Tesla. In 2006, Tesla introduced its first electric car, the Tesla Roadster. Since then, the global automotive industry has not only experienced an acceleration in Battery Electric Vehicle (BEV) production but also a fever for sustainable mobility. In 2022, over 10.5 million new BEV and Plug-In Electric Vehicle (PHEV) units were sold worldwide, representing a more than 55% increase compared to 2021, according to data from Statista. 

In Mexico, from January 2022 to December 2022, 5,631 fully electric vehicles were sold, with Mexico City the region with the highest number of units sold — 5,631 fully electric, 4,575 plug-in hybrid units, and 40,859 hybrid units — according to data from INEGI as of March 2023. However, this surge in eco-friendly mobility also brings significant challenges, not only in terms of production, supply chain, and public policies but also concerning energy and charging infrastructure.

As some may know, I have been fortunate to be involved with Zacua, Mexico's first electric vehicle brand, since 2018. Throughout these years, I have had the opportunity to participate in various forums and events, engaging with hundreds of individuals from the private, academic, industrial, and governmental spheres. One of the main questions, which quickly turns into a concern, is: "Where can I charge my electric vehicle?" This is a valid argument and a key factor influencing purchase decisions, whether for personal or commercial use. Addressing this and other charging infrastructure-related questions is imperative due to the sustained growth of electric vehicles in our country. Some noteworthy aspects include:

Limited Charging Infrastructure: One of the challenges for accelerated adoption of Battery Electric Vehicles (BEVs) in Mexico is the implementation of charging infrastructure. Compared to developed countries like our neighbor, the US, which boasts around 45,000 charging stations, Mexico's charging station count is significantly lower. According to an INA report in Mexico, there were a total of 1,189 charging stations with 2,193 connectors as of 2022, not all of which are functional. JD Power confirms that the lack of electric vehicle infrastructure, such as charging stations, is one of the reasons for low sales compared to other markets. The responsibility for implementing charging infrastructure should not rest solely on one actor but require a collaborative effort involving the federal and state governments, academia, car manufacturers, and the private sector. Companies like Voltway, dedicated to developing comprehensive electromobility solutions in Mexico, will be crucial for the country's infrastructure development. Zacua itself has installed over 50 fully functional and free charging stations mainly in banks, parking lots, and restaurants, primarily in Mexico City.

Range Anxiety: The fear of range anxiety refers to the driver's concern that an electric vehicle may not have enough charge to reach its destination, potentially leaving its occupants stranded. This term, now primarily used concerning Battery Electric Vehicle (BEV) autonomy, is considered one of the main psychological barriers to widespread public adoption of electric cars. A robust and functional charger network, not only in major cities like Mexico City, Guadalajara, and Monterrey but also along major highways, would alleviate this concern and drive electric vehicle adoption in our country.

Electrical Grid Capacity and Stability: One of the main technical challenges in expanding charging infrastructure is maintaining the capacity and stability of the electrical grid, especially with a concentration of charging stations in certain areas. Ensuring grid stability and sufficient capacity to handle increased demand is crucial. According to the National Electric Mobility Strategy (ENME) goals, BEVs are projected to represent 50% of light and heavy vehicle sales in Mexico by 2030. If this projection is met, improvements to the electrical grid will be essential.

As a growing country with a strategic geographical location, Mexico has a significant opportunity to contribute to the global shift toward electric mobility and renewable energy. Charging infrastructure for electric vehicles will be crucial for their scalable adoption and, consequently, for improving air quality and reducing the impact of greenhouse gas emissions caused by the current vehicle fleet, primarily consisting of 53,115,396 million units, including private, passenger, and commercial vehicles with internal combustion engines, according to INEGI data. Collaboration among various stakeholders, including governments, private enterprises, and consumers, is of vital importance to meet everyone's needs and maintain a balanced and sustainable approach for the future.